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Top 10 Buy Now Pay Later (BNPL) startups in India

Top 10 Buy Now Pay Later (BNPL) startups in India
Top 10 Buy Now Pay Later (BNPL) startups in India

COVID-19 global pandemic brought a fundamental change in the way consumers interact with businesses. Digital adoption accelerated as soon as the lockdown and restrictions on movement came into force.

People started shopping online for almost everything from food items to clothes. This resulted in growth in online payments as well as for the Buy Now Pay Later (BNPL) segment of consumer credit. In this article, we will discuss the Top 10 Buy Now Pay Later (BNPL) startups in India

What is Buy Now Pay Later (BNPL) Payment?

‘Buy now, pay later’ (BNPL) is a type of short-term financing that allows you to make payments in installments until the end of a stipulated time period to make a purchase.

Some online merchants and fintech companies are offering BNPL facilities to the customers as a convenient payment method and an excellent alternative to credit cards.

By offering accessible, transparent and affordable EMIs, BNPL is all set to change the lending landscape.

How does Buy Now Pay Later (BNPL) work?

BNPL service providers share the same operating model, only with terms and conditions.

Given in these steps how it works –

  • Purchase from a participating retailer.
  • Select the ‘Buy Now, Pay Later’ option.        
  • Make a small down payment of the total purchase amount.
  • The balance amount will be deducted in a series of interest-free EMIs.

Benefits of Buy Now Pay Later (BNPL)

Some of the benefits of BNPL are given below-

  • It increases affordability
  • Quick access to credit
  • Safe and secure transactions
  • Can choose repayment term and No cost EMI
  • Simple and hassle-free process              

According to Statista, the BNPL sector raised over $525 million in India in 2021.

As per ResearchAndMarkets, the BNPL payments industry in Asia-Pacific is expected to reach $133,696.8 million in 2022 and grow at a CAGR of 33.3 percent between 2022 and 2028.

The trend of online shopping has fueled the demand for easy loans and motivated more players to enter the BNPL market. Here is the list of Top 10 Buy Now Pay Later (BNPL) startups in India –



The Bengaluru-based Simpl was founded in 2016 by Nityanand Sharma and Chaitra Chidanand, This enables users to purchase small-ticket-sized items on loan, and pay them back later when they are able to.

All online expenses are consolidated in the Simpl account and the balance has to be paid every 15 days. No interest is charged by the company but default in payment may attract a penalty.

The company aims to provide transparent, simple financial services to everyone with a smartphone in real-time with the click of a button.

The startup has over 10,000 category-leading online merchants across its merchant network such as Zomato, BigBasket, Dunzo, Practo, Faaso’s, FreshMenu, 1mg, Cure.Fit, FreshToHome and Furlenco.



The Mumbai-based ePayLater was founded in 2015 by Akshat Saxena, Aurko Bhattacharya, and Uday Somayajula, It provides an innovative solution that leverages the power of data to mitigate the challenges facing the eCommerce industry.

The BNPL startup offers instant credit to online shoppers which gives them additional flexibility to manage their expenses better.

It is designed to help merchants provide a seamless customer checkout experience by reducing payment barriers and increasing the success rate.



The Mumbai-based Flexmoney was founded in 2015 by Yezdi Lashkari and Priyankar Srinivas, It operates InstaCredit, an instant credit platform that has gained a strong foothold in the BNPL market.

It offers short and quick digital credit lines to promote e-commerce and other online purchases, allowing the purchase of products in easy monthly installments without a credit card.

Instant Digital EMI is offered through its platform without any documents or the hassle of a down payment.



The Bengaluru-based ZestMoney was founded in 2016 by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman, It is an AI-powered EMI financing and BNPL platform.

Backed by global digital financial services investors including PayU, Ribbit Capital and Omidyar Network, ZestMoney is different from other consumer lending platforms because of its partnership with online merchants.

The startup has been integrated with large merchants such as Amazon, MakeMyTrip and Flipkart, thereby increasing the affordability of their products and facilitating frictionless selling at high conversion rates to a large base of customers.



Founded in 2017 by Jitendra Gupta, LazyPay is part of India’s fast-growing BNPL and EMI segment, which is led by Bajaj Finance, followed by a large number of fintech that has seen huge growth since the start of the pandemic.

It offers paperless credit delivery with minimal documentation and users can shop online with a single tap and pay the dues every 15 days or convert them into Equated Monthly Installments (EMIs).

Part of the PayU group, LazyPay’s one-tap digital checkout process is available on over 250 leading apps in India, including Swiggy, Zomato, Book My Show, Make My Trip, Vodafone, TataSky and others.

Paytm Postpaid

Paytm Postpaid
Paytm Postpaid

Online payments giant Paytm entered the BNPL segment in 2019 with its postpaid offering. Through its postpaid plan, Paytm allows users to shop online and clear the balance next month.

This includes recharge, bill payment, Paytm mall shopping, and other merchants across India. Your postpaid spending limit is determined on the basis of transaction history, relationship with Paytm and credit history with credit authorities.

It offers instant credit up to Rs.60,000 and borrowers can repay the loan in six monthly installments. Paytm Postpaid can be activated in minutes and offers interest-free credit for up to 30 days.

Amazon Pay Later

Amazon Pay Later

To tap into the growing need for consumer financing amid the pandemic, e-commerce giant Amazon launched its Pay Later option in 2020.

It offers users a zero-interest credit line based on their credit profile. Customers can sign up for Amazon Pay Later through its app. The credit amount can also be used to pay for water, electricity, mobile bills or groceries.

It provides instant credit of up to Rs 20,000 to customers which can be increased by updating their customer details.

Ola Money Postpaid

Ola Money Postpaid
Ola Money Postpaid

Ride-hailing company Ola started its BNPL offering in 2018 with ‘Ola Money Postpaid’. Ola Money postpaid can be used to pay for Ola cab rides as well as for over 300 applications.

It offers standard features like interest-free credit with 15 days of repayment.

The payment method allows users to make hassle-free payments without worrying about wallet recharge.



Founded in 2017 by Anup Agarwal, Ankit Mehta, and Sanjoy Shome, Mintifi digitizes payment, invoicing, and purchase financing solutions for its distributors and retailers.

It claims to work closely with over 100 leading brands across India including Bridgestone Tyres, NIVEA, Tata Motors, Polycab, Berger Paints, and Jockey. The startup’s vision is to transform the purchase financing experience across the distribution network to the last mile by providing flexible and affordable financing options.

Flipkart Pay Later

Flipkart Pay Later

Following in the footsteps of other e-commerce companies, Flipkart also launched a similar BNPL option in 2020.

Its unique feature of Flipkart Pay Later is the option to make partial payments for bills. The payment method offers a repayment period of up to 35 days.

Customers can pay the minimum due amount including the convenience fee one month or earlier.


A BNPL payment method is an excellent option for those who need something but don’t have instant money available. If used properly, it can be a very effective and convenient way of paying for things.

Several payments companies are also planning to expand their product portfolio in this segment. And why not! This segment is proving to be beneficial for all, including lenders and consumers.

Above mentioned startups are the Top 10 Buy Now Pay Later (BNPL) startups in India.

Frequently asked questions (FAQs)

1. How does Buy Now Pay Later (BNPL) model work?

‘Buy Now, Pay Later’ apps allow users to shop online and pay in weekly, bi-weekly or monthly installments over time.
These apps sometimes charge interest like a credit card, but they may offer an interest-free period.

2. What happens if you don’t pay Buy Now Pay Later?

If users do not pay on time, BNPL can quickly become costly. If users do not pay their loans before the end of the moratorium period, some providers will ask for a settlement fee or a lump sum interest may be added to the loan.

3. What are the advantages of Buy Now Pay Later (BNPL)?

It adds affordability, quick access to credit, safe and secure transactions, no-cost EMI, and a simple and hassle-free process.



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