Snapmint Credit Advisory, which runs fintech startup Snapmint, has secured $21 million (around Rs 168 crore) in a mix of debt and equity round led by Northern Arc Capital, with participation from undisclosed high-net-worth individuals who invested through non-convertible debentures.
The fresh funds will be used to expand its merchant network both online and offline.
Mumbai-based Snapmint was launched by Nalin Agrawal, Anil Gelra and Abhineet Sawa in 2017. It is a buy now pay later (BNPL) firm for buying any lifestyle category product or mobile phone, using small instalments and without monthly payment cost options.
The fintech startup claims to have grown six times in 2022, driven by over 300 direct-to-consumer brands, adopting its instalment payments. The app has also seen close to eight million downloads in India, it said in a statement.
“We believe that there is huge potential in the instalment BNPL segment. In India, there are about 22–25 million instalment BNPL customers. The sector is a high-yielding one as it is predicted to expand by an astounding 11 times to $43 billion by 2025, at a CAGR of 80%,” said Ashish Mehrotra, CEO Northern Arc.
"Snapmint’s business model of working closely with the merchants to help them increase their sales is unique in the industry. Since Snapmint is an NBFC, which is compliant with all digital lending guidelines of RBI, it has been able to leverage the infrastructure changes the government has brought about in the ecosystem post-Covid. With digital KYCs and account aggregator infrastructure being introduced along with the growth in digital payments powered by UPI, we see strong tailwinds in customer adoption of Snapmint payments,” said Anil Gelra, co-founder of Snapmint.
In March, Snapmint raised $9 million as a part of its Series A round led by Prashasta Seth, CEO and Chief Information Officer of Prudent Investment Managers.