The Bangalore-based fintech startup Simpl has raised US $ 40 million to expand its online offerings for purchases and subsequent payment transactions in the world’s second largest market.
Valar Ventures and IA Ventures led the Series B round of the six-year startup. LFH Ventures and some existing investors also took part in the round, announced the startup, which has so far raised 83 million US dollars.
Simpl works with popular online brands and offers their customers the ability to make purchases right now without paying.
Over the years it has also developed a number of offerings, including a one-time checkout; Bill Box, which enables customers to automate their recurring expenses and split an invoice into three parts to create a “full-stack solution,” said Nitya Sharma, Simpl co-founder and CEO, in an interview with TechCrunch.
Simpl’s partners include the telecommunications network Jio Platforms, the food delivery service Zomato, the pharmacy 1MG, the grocer BigBasket and the ticketing platform MakeMyTrip.
Buy Now, Pay Later Services have been around in India for several years, but it’s only been the last few quarters that they have rapidly gained in importance as e-commerce and digital payments expand their reach in the country.
One of the factors that make these services popular with consumers is the lack of trust between them and the services they deal with, Sharma said, pointing to the continued popularity of cash as a payment method for ecommerce businesses.
Fun fact: Uber introduced the ability to have driver partners pay with cash for the first time in its existence months after launch in India.
With a service like Simpl, customers know they don’t have to pay immediately and have the option to dispute transactions and request a refund quickly, he said. The startup uses its own underwriting technology to determine the clients it can offer its services to, he said. For brands, too, a simpler checkout process leads to a significant increase in conversion, he added.
“We have developed a full-stack checkout platform that gives merchants ultimate control over the user experience and helps them build trust with consumers at the checkout. Simpl is like a khata or a tab for online trading. This intuitive user experience built on trust will enable a larger e-commerce market and lead to greater adoption of mobile payments in India and the rest of the world, ”he said.
The startup said it has grown its monthly active traders and active user base 10-fold over the past 18 months. Over 7,000 brands are now using Simpl, according to the startup. The company now plans to further improve the consumer and merchant experience on its platform and also expand into new areas, including introducing Simpl to offline stores in the neighborhood and building a loyalty program, Sharma said.
“India’s e-commerce market is at a turning point and we believe Simpl’s solution will be a key enabler in accelerating the adoption of digital payments in e-commerce,” said James Fitzgerald, partner at Valar Ventures, in a statement . “It significantly improves the consumer experience, which is why it is quickly becoming a preferred partner for retailers. The team has shown a great implementation and we are excited to join their mission to democratize e-commerce for all retailers, large and small. “
Later fintech players pay $ 500 million a year in loans today, Bernstein analysts wrote in a recent customer note. They expect the number to climb to $ 26 billion by 2025.