These include Zurich-based Responsability Investments AG, Blue Ashva Capital, Pravega Ventures and others, he said.
The startup, which specializes as a pay later firm for small businesses, counts Pravega Ventures, ICICI Bank and Japan’s GMO Global Fintech Fund as existing backers.
The firm plans to use the fresh capital to expand its reach across more retailers and enhance its suite of products.
The fintech startup provides zero-cost credit to Small and Medium Enterprises (SMEs) across the country and has disbursed over Rs 1,000 crore in facilitating inventory purchases.
The company works closely with B2B majors like Walmart, Metro Cash and Carry, BigBasket and directly with large FMCG brands.
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“So far, in the past couple of years, we have been developing our products in such a manner that it is best suited for this segment of retailers,” Bhattacharya told ET over a video call. “So, the newly infused funds will be used to continue developing the correct product-market fit.”
He said there were two ways to reach more retailers across the country. “One is to focus on our growth to reach more retailers. Second is to enhance the product to introduce more nuanced features to help buyers and sellers on our platform even more.”
The Mumbai-based startup’s commerce finance solution is available to retailers across physical and digital sales as well as small businesses to purchase inventory across product categories. Its platform allows small businesses to avail 14-day interest free credit to procure inventory from sellers.
While the credit is mostly financed through partner banks and non-banks, the startup also has a Non-Banking Financial Company (NBFC) licence that helps it underwrite credit on its own book.
“We have a wholly owned subsidiary that is an RBI-registered NBFC that helps us reach the market even deeper. Our primary focus, however, is to work as a platform because we are good at tech,” Bhattacharya added.
Corner stores play an important role in India’s economy, but they are often inefficient, said Akshay Dua, head of private equity sustainable food APAC, Responsability Investments AG.
“With its innovative tech platform that allows alternative underwriting, and embedding finance in the process, ePayLater is creating a massive impact by providing financial inclusion and achieving digital transformation in the country,” Dua said.
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