BNPL Fintech Startup zenda Raises $9.4 Mn From VentureSouq, Others

Buy now pay later (BNPL) fintech startup zenda has raised $9.4 Mn in an oversubscribed seed funding round. The round saw participation from STV, COTU, Global Founders Capital, and VentureSouq. 

The fresh capital will be used for product development and to expand footprint in India.

Founded in June 2021 by Raman Thiagarajan and Haseeb Ahmed, zenda helps families pay school fees and other expenses through its BNPL offering. The startup aims to assist families in managing money and enabling their financial wellness through tailored banking and financial experiences.

zenda is the second startup of the founders duo–Raman Thiagarajan and Haseeb Ahmed. The startup began its operations in India in Q3 2021 and claims to have partnered with more than 1000 academic institutions in the country to date.

zenda claims that it has crossed over $100 Mn in annual contracted total payment volume (TPV) in India and abroad by Q4 2021. It further asserts that its user base has grown to 20X while the headcount of its team has gone over 40.

In the Indian BNPL segment, zenda is competing with big players such as Simpl, ePayLater, Flipkart, PhonePe, Lazypay, Paytm, Zestmoney, and Amazon India. 

BNPL’s Changing Landscape 

According to a RedSeer report, the Indian BNPL market will reach $40 Bn by 2025. The sector is currently growing 65% year-on-year (YoY). 

While a YouGov report states that the Indian users are most likely to use BNPL services in the coming time following Indonesia and Mexico. It is reported that a large number of Indian users (nearly 28%) decide to avail BNPL services in the coming 12 months.

In April 2022, New Delhi-based buy now pay later (BNPL) fintech startup SaveIN raised $4 Mn (INR 30 Cr) in seed funding from institutional investors including Y Combinator, 10X Group, Leonis VC, Goodwater Capital, Nordstar, Rebel Fund, Pioneer Fund, Soma Capital and SCM Advisors.

The round also saw participation from other investors including Oliver Jung, Grant Park Ventures, Leblon Capital, Almagro GmbH, MyAsiaVC, Kube VC, Spenmo’s Mohandass Kalaichelvan and Vimal Kavuru among others.

In March 2022, Bengaluru-based fintech startup Pocketly raised $3 Mn in a Pre-Series A funding round. According to the lending platform, the raised fund is a mix of debt and equity, with $2 Mn in debt and $1 Mn in equity.

The round was led by Dholakia Ventures and also saw participation from angel investors including Kunal Shah of CRED, Apurva Parekh, ED of Pidilite; Siddharth Somaiya, founder and CEO of Organic Riot and Aaryaman Vir Shah, cofounder of Prophetic Ventures also participated in the round.