BNPL Is Back In The News!
We did warn you about the explosion of Buy Now Pay Later (BNPL) funding stories we anticipated when we wrote about ZestMoney last week.
And now we'd like to pat ourselves on the back for an accurate prediction :)
Okay, enough gloating - the BNPL startup CapitalFloat just raised $50 million.
You guys may recognise the name because of their partnerships with several popular e-commerce companies - like Amazon, boAt and MMT.
This is actually the primary way that Capital Float (and other BNPL guys) reach customers - they partner with merchants.
Capital Float's BNPL business has grown tremendously over the past year.
They've quadrupled their customer base and now have 2.5 million customers who make close to 2 million purchases a month!
But BNPL isn't the only thing they do.
CapitalFloat actually has a substantial business lending to SMEs to help them scale up.
Another key offering of theirs that has a decent scale is the personal finance app Walnut. Walnut offers stuff like expense tracking, budgeting, bill reminders etc.
They claim to have 12 million-plus downloads for Walnut.
One difference to note between ZestMoney (and other future BNPL startups) and CapitalFloat is that CapitalFloat already has an NBFC license. So while players like ZestMoney have to partner with other lenders, CapitalFloat can do all the work on its own.
We're not too sure about their valuation, since financials havent been revealed yet, but it wouldn't be surprising if they raise some more money soon and enter the club.