These BNPL startups are changing the way India shops by transforming the payments landscape

The rise of online shopping has led to strong growth for India’s BNPL payment industry. Here are the fintech startups that are tapping the increasing demand.

These BNPL startups are changing the way India shops by transforming the payments landscape

Friday April 29, 2022,

5 min Read

More and more people – millennials and GenZ, in particular – are choosing to buy now, pay later. 

According to Statista, the buy now pay later (BNPL) sector raised over $525 million in India in 2021. 

ResearchAndMarkets says the BNPL payment industry in the Asia-Pacific is expected to reach $133,696.8 million in 2022 and to grow at a CAGR of 33.3 percent between 2022 and 2028. It has recorded strong growth over the last four quarters, supported by “increased ecommerce penetration along with impact of economic slowdown due to disruption caused by the COVID-19 pandemic”.

Gross merchandise value is expected to grow from $82,806.9 million in 2021 to $749,229.9 million by 2028.

The online shopping trend has boosted the demand for easy loans and driven more players to enter the BNPL market. Here are some startups that are tapping the rising demand: 



Uday Somayajula, Co-founder of ePayLater

Founded by Akshat Saxena, Aurko Bhattacharya, and Uday Somayajula in 2015, Mumbai-based ePayLater offers an innovative solution that leverages the power of data to mitigate challenges being faced by the ecommerce industry.

The BNPL startup offers online shoppers instant credit that gives them the added flexibility of managing their expenses better. It is designed to help merchants provide a smooth customer checkout experience by reducing payment hassles and boosting success rates.

“At ePayLater, we are driven by the vision of making credit accessible to as many retailers and small businesses as possible,” Aurko says.

In September 2021, ePayLater raised $10 million from Blue Ashva Capital, Responsibility, Pravega Ventures, and others to reach out to more retailers and customers across locations, and enhance the offering to become a one-stop solution for all financing needs of small businesses such as traders, wholesaler, and




Founded in 2015 by Yezdi Lashkari and Priyankar Srinivas, Mumbai-based Flexmoney enables users to avail bite-sized loans on ecommerce platforms. It offers small and quick digital credit lines to fuel ecommerce and other online purchases, allowing purchase of products on an easy monthly instalment without credit card. The instant digital EMI is offered without the hassle of any documentation or down payment.

“Flexmoney’s goal is to address the enormous digital credit market opportunity. Our vision is to democratise consumer finance by giving lenders the ability to offer a ‘starter credit’ product and service segments that are otherwise unviable to service via legacy offerings such as credit cards or personal loans,” Yezdi said.

In June 2021, the startup raised $4.8 million in a Series A round from Pravega Ventures and others to scale its credit network footprint to many more merchants and lenders, as well as launch additional products and consolidate its position as the leading digital credit and BNPL infrastructure in India.



Founded by Nitya and Chaitra Chidanand in 2016, Bengaluru-based fintech startup Simpl enables users to buy small-ticket size items on loan, and pay back later when they’re able to.

It is an online payment instrument that allows a consumer to buy now and settle for the purchase at a more convenient time. The startup aims to provide transparent, simple financial services to everyone with a smartphone with a click of a button, in real time.

“The core principle behind Simpl is that it doesn't matter whether you are a big retailer or a small retailer; you should have access to technology and products that enhance your consumer’s user experience and be able to play at a level playing field with large platforms,” Nitya says.

In December 2021, Simpl raised $40 million in Series B round led by IA Ventures and Valar Ventures to hire talent including engineers, and fuel the launch of new products and features.



Founded in 2016 by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman, Bengaluru-based ZestMoney is an AI-driven EMI financing and BNPL platform. 

The startup is deeply integrated with large merchants such as Amazon, MakeMyTrip, and Flipkart, increasing the affordability of their products and helping them facilitate frictionless sales at a higher conversion rate to a larger base of customers.

“We have a huge under-penetration challenge for a bunch of products -- from insurance to wealth management. But the problem we're trying to solve is consumer credit. We felt the best way to do that was to create products that partner with retailers, manufacturers, and the entire digital ecosystem,” Lizzie says. 

In September 2021, ZestMoney raised $50 million in a Series C investment from Zip Co to expand its product suite, deepen the transaction network, strengthen its balance sheet capacity, and launch a new business line in insurance and savings.


Mumbai-headquartered Mintifi, founded by Anup Agarwal, Ankit Mehta and Sanjoy Shome in 2017, Mumbai-based Mintifi digitises payments, invoicing, and purchase financing solutions for their distributors and retailers.

The startup claims to closely work with over 100 leading brands across India, including Bridgestone Tyres, NIVEA, Tata Motors, Polycab, Berger Paints, and Jockey.

“Today, across industries, brands are using our platform to drive higher efficiency and faster growth in their supply chain network, and we will continue to help SMEs grow their businesses. More importantly, we are proud to drive these innovations, while still ensuring profitability. We are thrilled to welcome Norwest Venture Partners and Elevation Capital as we gear up for our next phase of growth.”

In February 2022, Mintifi raised $40 million led by Norwest Venture Partners and Elevation Capital. It aims to use the fresh funds to continue building on its tech infrastructure and expand its product offerings.

Edited by Teja Lele