ePayLater - Buy Now, Pay Later

While there was a time when people used to borrow money only for fulfilling major goals like building a house or starting a business, the scenario is quite different today. Millennials today do not hesitate to borrow for meeting their lifestyle goals like shopping or traveling.  As per a report published by Paisabazaar, India’s largest digital marketplace for financial products, credit awareness in Indians is on a steady rise. According to the report, the young salaried segment of  Indians have more credit awareness, maintain better credit scores and are more confident about borrowing money. Again, a recent report by digital lending platform, IndiaLends says that there has been a 55 percent growth in personal loans for travel purposes. Considering this shift from ‘save first’ philosophy to ‘consume first and pay overtime' way of life, and to fulfill the aspirations of the new Indians, ePayLater a  fintech startup is providing short term credit at the point of sale. The startup also meets the short term credit needs of small businesses.

Startup Name ePayLater
Head Quarter (city) Mumbai, India
Founder/s Name Akshat Saxena, Aurko Bhattacharya, Uday Somayajula
Sector Fintech
Founding Year 2015
Website link www.epaylater.in
Registered company Name Arthashastra Fintech Pvt. Ltd.

About ePayLater and how it works
Founders of ePayLater and Team
ePayLater - Market and Industry Details
How was ePayLater Started
ePayLater - Name and Logo
ePayLater - Funding and Investors
ePayLater - Revenue Model
ePayLater - Competitors
ePayLater - Advisors & Mentors
ePayLater - Growth
ePayLater - Awards and Recognition
ePayLater - Future Plans

About ePayLater and How it Works

ePayLater is a checkout lending platform which provides credit at the point of sale. ePayLater offers the simplest possible checkout experience in existence today, providing customers with the ability to conclude a transaction with just a click of the mouse or a tap of the touchscreen. It is a ‘Buy Now, Pay Later’ solution through which customers can get access to an instant credit limit to make faster purchases, that too without having to pay at the same time.

There are two major product lines of the Company -

1) Providing short term credit at the point of sale for consumers shopping for their personal needs. Here, ePayLater enables a "Buy Now, Pay Later" solution for frequent online purchasers with an interest-free credit term of 14 days. ePayLater has partnered with IRCTC, PVR, MakeMyTrip, Yatra, Easemytrip, Tata Croma, Travelyaari among many others.

2) Providing short term credit for individual retailers for their business needs. The service involves no hidden cost and the credit line extended is completely collateral free. This allows businesses to continue providing services to their customers and achieve higher sales through faster inventory churns. ePayLater provides businesses credit in the form of line of credit, short term loans and merchant cash advance.

Driving volume is always key to merchants. However, payment failures result in the drop in volume and this is generally not in the hands of the merchant. A typical payment process involves going to a payment gateway, then to a bank, then the user is sent back from the bank to the payment gateway and then to the merchant. If there is an issue at any link, the payment fails. Many times the user may not even return to the merchant and can't even retry.  This problem is completely eliminated by ePayLater by providing 1 click checkout.

ePayLater also counters the high incidence of cash in P2M ( Person to Merchant) transactions. For customers who prefer cash-on-delivery, ePayLater gives customers the same benefits (like receiving the goods before deducting payment) in a cashless manner. For offline transactions, where cash is predominant in India, ePayLater's UPI based solution gives customers an incentive to move away from cash since one can transact on credit.

Further, the time and the number of steps taken to do a transaction using credit, debit, net banking is significantly higher compared to a few seconds on ePayLater. Since customer never leaves the portal (which customer does in case of credit/debit/net banking/wallet transactions), ePayLater can easily guarantee a very high success rate and transaction security.

In a nutshell, ePayLater’s benefits  for consumers are threefold. First, it's Buy Now, Pay Later functionality; second, the enabling of a single-tap checkout process; and third, its ability to safeguard consumer information from unnecessary dissemination.

Founders of ePayLater and Team

Akshat Saxena, Aurko Bhattacharya and Uday Somayajula are the founders of ePayLater.

An engineer by qualification from DA-IICT Gandhinagar, Mr. Akshat Saxena is a management specialist in Marketing and Information Systems with an MBA degree from the 
Management Development Institute, Gurgaon (MDI). Akshat carries a cross-sectional experience of setting up and managing data-driven businesses. In his 12 years of professional experience he has worked extensively in the BFSI, credit and payment space, and has endeavored to solve business problems with technology and data solutions. Prior to embarking upon his entrepreneurial journey, he worked with majors like Oracle, IBM, SAP and TransUnion.

Akshat Saxena, Co-founder, ePayLater
Akshat Saxena, Co-founder, ePayLater

Mr. Aurko Bhattacharya is an engineer by qualification from 
Indian Institute of Technology, Roorkee
 (IIT Roorkee). Aurko is a management specialist with an MBA degree from the 
Indian Institute of Management, Calcutta
 (IIM-C). Aurko 
carries a Banking experience dealing with structured investment solutions across Equity, Interest Rates and Foreign Exchange. In his 12 years of professional experience he has worked with industry majors like ICICI Bank and Barclays Wealth and Investment Management.

Aurko Bhattacharya, co-founder,ePayLater
Aurko Bhattacharya, co-founder,ePayLater

Mr. Uday Somayajula is an engineer and management specialist in Finance with an MBA degree from the Management Development Institute, Gurgaon (MDI). Uday  is experienced in multiple areas of banking, capital markets and risk consulting. In his 12 years of professional experience he has worked with industry majors like ICICI Bank and Accenture Management Consulting.

Uday Somayajula, Co-founder, ePayLater
Uday Somayajula, Co-founder, ePayLater

Market and Industry Details

With a credit card penetration of just 2% in the country and less than 10% SMEs having access to credit, ePayLater has huge growth headroom.

The team at ePayLater arrived at the solution after intensive market research and interviews with people. Market studies showed that "pay later" products not only result in higher transaction success rate for merchants but also bring in new customers who previously did not have access to credit.

Successful models in the USA and Europe were studied. Studies clearly demonstrated the fact that pay later products result in significantly higher transaction success, provide better customer experience to users.

With India being on the path of an e-commerce revolution, this was the perfect time to build a "Pay Later" for India and give the much-needed credit boost and checkout convenience to people. ePayLater aims is to make credit more accessible and convenient for the growing population of India

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How was ePayLater Started

ePayLater was founded in December 2015, while the concept ideation started a few months prior. Akshat, Aurko and Uday had been working in complementary sub-domains of BFSI and had a consensus on the potential a mass-market credit offering can unlock. The team was amazed at the fact that despite the great strides being made by the economy and therefore retail consumption, the credit penetration remained abysmally low.

In India we have only around 40 million credit card holders in a billion plus population, which in terms of percentage penetration is way lower compared to the western counterparts. The founder trio had the vision to empower every fellow-citizen with a credit instrument. And that’s how the idea of ePayLater was born.

In order to actualize the same, the team of ePayLater chose a path which was non-traditional yet congruent with trends – demographic and technology alike. They decided to build a purely digital credit offering, which would leverage the best of data science and engineering, and deliver an experience which is not just inclusive, but also superior. ePayLater today underwrites customers using alternate data, in less than a second, thereby allowing them to be a true checkout credit method at points of sale, whether online or offline. Customers could get a credit limit in real-time, and use it to ‘Book/Buy Now and Pay Later’, irrespective of their geographical presence.

The idea behind starting the company was to use data science and new-age technologies to solve real-life challenges and bridge the credit divide that exists in India today. ePayLater is a team of dynamic professionals with a goal to optimize the digital payment experience and make it seamless, reliable and secure - says Akshat.

ePayLater - Name and Logo

The name ePayLater exactly denotes the company's work, ePayLater, being a digital way of paying later for products and services.

The logo depicts the image of snapping fingers to signify the instant approval of credit and the quick payment solution that ePayLater offers!

ePayLater Logo
ePayLater Logo

ePayLater - Funding and Investors

Recently, ePayLater closed the Pre-series A funding led by ICICI Bank and GMO Global Fintech Fund, an investment fund of the internet conglomerate in Japan along with family offices like Parekh and Patni and foreign investors from the UK.

In total, ePayLater has raised over $3.3 million funding in 3 rounds till date.

Date Stage Amount Investors
July, 2016 Seed $2 Million Undisclosed
July, 2018 Seed $1.2 Million ICICI Bank
January, 2019 Seed Undisclosed ICICI Bank & GMO Global Payment Fund

ePayLater - Revenue Model

ePayLater earns revenue from, transaction fee that is charged to the merchant.  Another source of revenue is the penal charges levied on overdue payments

ePayLater - Competitors

LazyPay, Simpl, Paytm Postpaid, KrazyBee, Quiklo, SlicePay etc are some competitors of ePayLater.

However ePayLater's USP is its product that serves the NTC (New to Credit), non-urban residents as well as it solving the challenges of urban elites. At ePayLater, the platform leverages sophisticated algorithms that have the capacity to cater to wide and differing audiences in an inclusive way. They have built a product that’s serving the under-served, non-urban residents as well as it solving the challenges of the urban elites.

For instance, IRCTC sees traffic from the biggest metros and the smallest towns, catering to customers of different ages that often lack credit histories. In spite of these challenges, ePayLater’s algorithms, created using advanced data science and analytics, have been able to determine their creditworthiness based on several parameters other than credit history, making it possible for the company to solve real-life problems by disbursing credit to the right people.

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ePayLater - Advisors and Mentors

Stefan van den Berg, founder and former CEO of AfterPay, a provider of 'pay after delivery’ payment services in Western Europe and ANZ region, has joined ePayLater as a strategic advisor.

ePayLater - Growth

ePayLater's focus on continuous innovation puts them in the lead every time in offering the most convenient, secure and seamless experience to the customer.

To cite a specific example, the launch of ePayLater’s services on IRCTC created a wave of excitement amongst customers. Partnering with India’s largest online portal is a strong testimony to their technology and analytics leadership. ePayLater is considered to be one of the most convenient methods to purchase tickets on the IRCTC platform.

Also, ePayLater is India’s first UPI powered credit solution. The team of ePayLater came up with an innovative solution to empower individuals to transact on credit anytime anywhere. They partnered with IDFC Bank to bring instant digital credit to individuals transacting online and offline, using BHIM UPI. For the first time, digital credit is made possible using the BHIM UPI railroad, the instant real-time payment system developed by NPCI. This allows the customers to use ePayLater on all the major merchants like Amazon, Flipkart, Myntra, Jabong, and Uber.

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ePayLater - Future Plans

ePayLater look forward to introduce a bunch of innovations that would help them further simplify the customer experience, besides making credit more inclusive. Alongside, having solved the first set of business challenges their merchant partners were facing, ePayLater are broadening the vistas and gearing up for other business metrics that could be achieved.

The startup is looking at business credit as a major thrust area, as there lies a huge unmet demand for easy credit. ePayLater believes solving the said problem would unlock the true business potential of micro-entrepreneurs across the country.

On the back of its unique product and seamless execution, ePayLater is all set to cement its position as the leading facilitator of Digital Credit aimed at individuals and small businesses.

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About Chayanika Goswami

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