Buddy provides short-term and long-term payment plans to college students enabling them to buy ecommerce products like mobile phones, laptops, cosmetics and footwear among others. The product price ranges from INR 1,000 to INR 90,000. The startup currently provides products in partnership with various ecommerce players including Flipkart, Amazon and Snapdeal.
The startup was founded in October 2015 by Rajan Bajaj and Deepak Malhotra. It officially started its operations in January 2016, and currently has presence in over 100 colleges across Bangalore. It also counts close to 5,000 active students on its platform.
Co-founder of Buddy Deepak Malhotra recalls and states that the idea originated during his college days at BITS when the students started getting a six month credit line on any purchase inside the campus. That witnessed a huge consumption spike across the campus. It finally materialised in the form of Buddy.
Buddy aims to capture a $750 Mn market demand through its services. The ecommerce market in India is expected to grow up to $100 Bn by 2020. Leveraging this market opportunity, Buddy will also partner with various online merchants and wallets to let the students use their services without making an instant payment and buy products on credit.
The newly raised funds will be used to expand on its credit risk & technology team to improve its infrastructure to support growth. The startup will concentrate on building a stronger presence in colleges through offline marketing channels.