Fintech platform Capital Float on Monday said it has financed customer purchases worth Rs 400 crore since March 2020 and witnessed 350 per cent growth in its buy-now-pay-later customer base.
The company, which is adding about 2 lakh new customers per month, expects to double its customer base to 20 lakh by the end of this fiscal year.
"Capital Float has financed customer purchases worth Rs 400 crore since March 2020 and witnessed a 350 per cent growth in its buy-now-pay-later (BNPL) customer base in the short span of seven months when compared to FY20, as an increasing number of Indians found value in instant online credit," a statement said.
It has tied up with e-commerce and travel players to offer its instant online credit to millions of consumers across India, the statement added.
Earlier this month, Capital Float achieved a milestone of reaching over one million customers. The company has seen a 2X increase in online spending among its own customer base in September compared to pre-pandemic levels.
"Driven by a 100 per cent jump in BNPL customer numbers during the weeks of Indian e-commerce festive sales and the current trajectory of 200,000 new customers per month, the company expects to double its customer base to 2 million by the end of this fiscal year," the statement said.
The company noted that BNPL increases the purchasing power of customers through flexible credit options such as instant zero cost or low-cost EMI with customisable repayment terms.
"BNPL as a product has proven to be a standout success among millennials who constitute a substantial part of digital India...Over 70 per cent of our customers are between 25-40 years of age and 20 per cent are new to credit," Capital Float co-founder Gaurav Hinduja said.
He added that these customers are looking for digital-first financial products to make everyday goods and services more accessible, convenient and affordable.
"With the shift to e-commerce, online bill payments and e-groceries since COVID-19, our BNPL product has become increasingly relevant to customers in facilitating recurring and larger ticket purchases," he said.
Founded in 2013, Capital Float is the trade name for CapFloat Financial Services (formerly known as Zen Lefin), a non-banking finance company.
The company has raised funding from investors such as Elevation Capital, Sequoia India, LGT Lightstone Aspada, Creation Investments Capital Management LLC, Ribbit Capital and Amazon.
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