Mumbai-based fintech start-up Snapmint has raised $21 million in equity and debt as a part of its latest fundraising round. Participants in the debt funding round included institutional investors led by Northern Arc Capital, a diverse debt platform, and high-net individuals, who made investments through non-convertible debentures.
Ashish Mehrotra, chief executive officer of Northern Arc, believes that there is enormous potential in the instalment buy-now-pay-later (BNPL) segment. There are about 22 to 25 million instalment BNPL customers in India. The high-yielding sector is predicted to expand by over 11 times to $43 billion by 2025, at a CAGR of 80 per cent.
"Snapmint is an affordable instalment BNPL player and has already created a niche. We are impressed by the team's portfolio quality and their scalable smooth underwriting of young consumers. Our digital platform Nimbus, with a focus on data and performance, helps offer partners like Snapmint customised and easy-to-access solutions," Mehrotra stated.
Anil Gelra, co-founder of Snapmint, added, "Since Snapmint is a non-banking finance company (NBFC) compliant with all digital lending guidelines of Reserve Bank Of India. It has been able to leverage the infrastructure changes the government has brought about in the ecosystem post-Covid. With the introduction of digital KYCs and Account Aggregator infrastructure with the growth in digital payments powered by UPI, we see strong tailwinds in customer adoption of Snapmint payments. We are excited to collaborate with prominent investors and industry players to empower young consumers in India."
Snapmint has grown 6x in 2022, primarily driven by over 300 direct-to-consumer (D2C) brands adopting its instalment payments. 8 million consumers have downloaded the fintech app in India. Snapmint intends to deploy the funds to expand its online and offline merchant network to power the purchases of 550 million PAN card holders and Indian consumers.
Snapmint, an instalment BNPL platform, was founded by IIT Bombay batchmates Nalin Agrawal, Anil Gelra and Abhineet Sawa in 2017, enabling customers to shop on instalments.
