Capital Float finances INR 4 billion of purchases during COVID-19 on BNPL
By Edil Corneille
Capital Float, an Indian digital financial services player, has reported having financed customer purchases worth INR 4 billion since March 2020 and witnessed a 350 percent growth in its buy-now-pay-later (BNPL) customer base in a span of 7 months when compared to FY20. The company has attributed this to the increasing number of Indians finding value in instant online credit.
Capital Float has tied-up with e-commerce and travel players to offer its instant online credit to millions of consumers pan-India. Earlier this month, it achieved its milestone of serving over a million customers. Driven by a 100 percent 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 customer base of Capital Float comprises of a mix of salaried and self-employed individuals spread across over 300 cities in India. ‘Buy now pay later’ increases the purchasing power of customers through flexible credit options such as instant zero cost or low-cost EMI with customisable repayment terms. This model is gaining significant traction among Indian consumers as well as globally, offering convenience and affordability options as the shift to online shopping continues to accelerate.
Gaurav Hinduja, Co-Founder, Capital Float said, “Buy now pay later as a product has proven to be a standout success among millennials who constitute a substantial part of digital India. We are offering this product across 8000 pin codes in the country. Over 70% of our customers are between 25-40 years of age and 20% are new to credit. 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 & e-groceries since Covid, our buy-now-pay-later product has become increasingly relevant to customers in facilitating recurring and larger ticket purchases.”
Since the COVID-19 pandemic, the e-commerce sector is said to have grown rapidly. Capital Float has seen a 2X increase in online spending among its own customer base in September compared to pre-pandemic levels. As a consequence, the company has also witnessed a huge increase in demand for small-ticket digital credit facilities, particularly for online purchases.
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