Rupifi has raised $25 million in a new funding round as the Indian startup, which currently offers buy now, pay later into several markets to serve its merchants, looks to expand its payments offering from one company to another.
Tiger Global and Bessemer Venture Partners co-led the $25 million funding round for the two-year-old startup. On Thursday, a senior executive said existing investors Quona Capital and Ankur Capital also participated in the round.
New investment, especially from prominent global investors, shows the appetite of many to buy now, pay later, a category that has achieved profound success globally in recent years, and their bullish aspirations for young companies in India.
Rupifi works with more than two dozen marketplaces for business, including Walmart, Flipkart and Jumbotail, to serve their trading partners, many of which are pop and mom-to-be store operators, with credit (working capital). Ticket size for these checks ranges from $10,000 ($135) to $1,000,000 ($13,500).
The startup examines IPO partner market data – about who should get credit and how much. Anubhav Jain, co-founder and CEO of the startup, told TechCrunch in an interview that Robify, which largely works with non-bank financial firms to raise capital, has provided credit to more than 50,000 vendors so far.
“Our B2B BNPL currently operates in some of the class-leading B2B markets in India across sectors such as consumer goods, pharmaceuticals, fashion, electronics, agriculture and food,” he said.
Access to capital is the biggest challenge faced by traders in the world’s second most populous country. Small businesses, especially mom-and-pop stores, rely on the money they secure from selling their current inventory to buy the next batch.
Several industry figures have shown that an adequate snapshot of working capital enables these traders, who otherwise run some of the most economically sound businesses in the world, to significantly increase their returns.
Buy now, pay later is Rupifi’s standout offering today, but Jain, who previously worked at American Express and Razorpay, and sold his education technology platform StudyBud in an all-cash deal, said the startup will expand its product offerings in the next few months.
“What we are saying is that BNPL is just one of the payment methods that merchants use,” he said. The startup is now building an embedded payment product – which, like its BNPL offering, will be located within the partner company’s app and website – and will power any payment option, including cash for payment processing. “The goal now is to move to B2B payments and reimbursement.”
“B2B payments and B2B credit are a huge problem with technology being the future to solve these issues, and the Rupifi team is working to keep SMEs at their core,” Vishal Gupta, managing director of Bessemer Venture Partners, said in a statement.
Another product he’s starting to try is a trading card. Jain said the card is aimed at small businesses and organizations that have demonstrated good behavior with our BNPL service. “They can use the card anywhere, even if we don’t integrate with that business,” Jane said.
“We have experience working with over a hundred B2B and SaaS founders,” Tiger Global’s John Curtius said in a statement. “We understand that B2B payments globally are largely disruptive and manual. In India’s $1 trillion B2B commerce and payments space, Rupifi has demonstrated rapid growth and proven product leadership.”