Bengaluru-based fintech startup Neokred Technologies Pvt Ltd said it has acquihired a buy-now-pay-later (BNPL) solutions provider PeSeva Technologies.
The acquihire will enable Neokred to tap into the current demand of embedded lending to offer customers affordable loans in a seamless manner, said NeoKred in a statement without disclosing the financial details of the deal.
PeSeva team will also help Neokred to expand its lending solutions to boost its current business-to- business (B2B) financial products. As part of the transaction, Sukhjinder Singh Gotra, co-founder and CEO of PeSeva Technologies, will join Neokred as head of product.
Neokred, which was founded by Tarun Nazare and Rohith Reji in 2019, enables corporates, fintechs and startups to launch their own banking services with the help of customized tools. The startup claims it has issued more than 2 lakh cards since December 2020.
"Over the last ten years, embedded lending has evolved to become a prominent form of financing, as a result we have entered this space to keep up with the current demand and the PeSeva team will be critical in supporting us in meeting our goals," said Neokred's Nazare.
Earlier in June, Neokred said it completed its seed round of funding for an undisclosed amount led by Virenxia Group and founder of B21 Ltd and PayGlobal Ltd, Nitin Agarwal.
India's BNPL market will increase to $45-50 billion by 2026 from $3-3.5 billion now, according to a report by research and advisory firm Redseer. BNPL users in India is expected to rise to 80-100 million customers by 2026, from 10-15 million at present.
MobiKwik, which is headed for an initial public offering (IPO), has also increased its focus on its BNPL offering. It said that its income from BNPL accounted for nearly a fifth of its Rs 302 crore revenue for fiscal 2020-21.