 "Snapmint raises $18 mn in debt & equity to expand merchant network")
Snapmint, a no-cost EMI and buy-now-pay later platform, has raised $18 million in a mix of debt and equity. The firm will use the fresh funds to expand its partnership with more shopping portals, grow its merchant network, and expand its balance sheet, allowing it to disburse more.
The funding round was led by Prashasta Seth of Prudent Investment Managers, with participation from Perpetuity Ventures and Pegasus Fininvest.
Its existing lending partners such as Vivriti, MAS, Northern Arc, ICICI and AU Small Finance Bank continue to stay bullish on the company on the back of its strong fundamentals and low NPAs, claimed the company.
Nalin Agrawal, co-founder of Snapmint, said, “In the last 2 years, we have grown from 1 million purchase financing transactions a year to over 5 million annual transactions and now have no-cost EMI partnerships with over 900 brands in India. This makes us one of the most popular fintech companies in India.”
Some of its existing tie-ups include boAt, Xiaomi, Croma, Cult, Arvind Fashions, Neeman’s, The Sleep Company, Snitch, and Mokobara. The platform currently has over 5 million monthly active users. Its EMI shopping app has achieved over 35 million downloads and enables access to no-cost EMI across more than 26,000 pin codes nationwide.
Prashasta Seth, CEO of Prudent Investment Managers, said, “They have consistently created value for customers, merchants, lenders and shareholders. Just as the offline consumer durable financing market boomed in the last two decades, we see a similar opportunity unfolding online on the back of UPI and e-commerce. Snapmint, with its vast customer and merchant network, is well poised to capitalise on this”
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Founded in 2017 by IIT Bombay graduates Nalin Agrawal, Anil Gelra and Abhineet Sawa, Snapmint aims to democratise no-cost EMI for online shopping in India by eliminating barriers to accessible and affordable purchasing across categories. Customers do not need a credit card to make EMI purchases. All they need is a working UPI. Most of the purchases are in the fashion and personal electronics segment.
Abhishek Singhal, founder of Perpetuity Ventures LLP, added “The Snapmint team has wonderful customer insights and an inherent understanding of risk, which is key in a financial services business. The market and opportunity are immensely large and the team’s proven track record increases the odds of success manifold.”