- Flipkart Pay Laters provides credit up to ₹1 lakh to its customers depending on their credit profile.
- The Flipkart Pay Later feature is currently only available on Flipkart and Myntra, but it will be expanded to other platforms.
- The company is now looking to go public in 2023 at a valuation of $60-70 billion.
Walmart-owned ecommerce giant Flipkart on Thursday announced that it has doubled the user base of its ‘Buy Now, Pay Later’ (BNPL) business. The Flipkart Pay Later now has over six million users within seven months.
Flipkart Pay Laters provides credit up to ₹1 lakh to its customers depending on their credit profile. The fintech venture allows customers to shop any number of times throughout the month and pay the total bill amount in part within 30 days or through EMI.
The feature is currently only available on Flipkart and Myntra, but it intends to expand it further. After that, they could face competition from players like Simpl, LazyPay, Mobikwik, Paytm Postpaid and Amazon Pay Later.
|Flipkart Pay Later
|Amazon Pay Later
Second biggest players in the BNPL market
With 6 million users, Flipkart Pay Later is the second biggest ‘Buy Now Pay Later’ player after Simpl. The feature can be used to purchase items across categories like groceries, lifestyle, general merchandise and home.
It also offers longer-tenured EMI options to buy mobiles, consumer electronics and large appliances. Flipkart Pay Later currently processes 3 million long tenured EMI transactions on a monthly basis, and 90% of these transactions come from repeat customers.
The company claims to offer a frictionless checkout experience as the platform does not require any paperwork or down payment before offering the credit line.
“As per research, the Buy Now Pay Later (BNPL) market will grow 10x over the next five years, surpassing $40 billion by 2026. Interestingly, 45% of customers prefer to make purchases with BNPL options even if they have a credit card owing to the convenience that BNPL provides,” Dheeraj Aneja, senior vice president and head of fintech and payments group at Flipkart, said.
Flipkart is currently pulling all strings for a successful public debut by 2023. The company raised $3.6 billion in July 2021 in a run-up to this ambition, and is currently valued at $37 billion. It initially planned an initial public offering (IPO) in the USA by November 2022, seeking a valuation of $50 billion, but the plan was delayed due to market volatility.
The company is now looking to go public in 2023 at a valuation of $60-70 billion. To make this into a reality, Flipkart is looking to boost its online healthcare services and travel booking heavily, as per media reports.