- Flipkart Pay Laters offers its customers credit up to ₹1 lakh depending on their credit profile.
- The Flipkart Pay Later feature is currently only available on Flipkart and Myntra, but is expanding to other platforms.
- The company now plans to go public in 2023 at a valuation of $60-70 billion.
Walmart-owned e-commerce giant Flipkart announced Thursday that it has doubled the user base of its ‘Buy Now, Pay Later’ (BNPL) business. The Flipkart Pay Later now has more than six million users within seven months.
Flipkart Pay Laters offers its customers credit up to ₹1 lakh depending on their credit profile. The fintech company will allow customers to shop any number of times during the month and pay part of the total invoice amount within 30 days or via EMI.
The feature is currently only available on Flipkart and Myntra, but plans to expand it further. After that, they can face competition from players like Simpl, LazyPay, Mobikwik, Paytm Postpaid, and Amazon Pay Later.
|Flipkart Pay Later||6 million|
|Pay afterwards||3 million|
|Amazon Pay Later||2 million+|
Source: Company Announcements
Second largest players in the BNPL market
With 6 million users, Flipkart Pay Later is the second largest ‘Buy Now Pay Later’ player after Simpl. The feature can be used to purchase items in various categories such as groceries, lifestyle, general merchandise, and home.
It also offers longer-term EMI options to buy cell phones, consumer electronics, and large appliances. Flipkart Pay Later currently processes 3 million long-term EMI transactions on a monthly basis, and 90% of these transactions come from repeat customers.
The company claims to provide a smooth checkout experience as the platform does not require any paperwork or deposit before offering the credit line.
“According to research, the Buy Now Pay Later (BNPL) market is set to grow 10x over the next five years, reaching over $40 billion by 2026. Interestingly, 45% of customers prefer to purchase with BNPL options, even if they have a credit card for the convenience that BNPL provides,” said Dheeraj Aneja, senior vice president and head of the fintech and payments group at Flipkart.
Flipkart is currently pulling the strings for a successful public debut in 2023. The company raised $3.6 billion in July 2021 in the run-up to this ambition, and is currently valued at $37 billion. It initially planned an initial public offering (IPO) in the US by November 2022, targeting a $50 billion valuation, but the plan was delayed due to market volatility.
The company now plans to go public in 2023 at a valuation of $60-70 billion. To make this happen, Flipkart is looking to greatly improve its online healthcare services and travel booking, according to media reports.
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