ICICI bank will buy a 9.91% stake in a Mumbai based fintech start-up called ePayLater, the lender said in a stock exchange filing. The transaction, expected to be completed by the end of July, amounts to Rs 8.72 crore, the lender said. The development was first reported by VCCircle. Founded in 2015 and operated by Arthashastra Fintech Ltd, ePaylater allows its customers a checkout credit option on online portals, similar to services like LazyPay and Simpl. According to its website, the company uses an algorithm to assign a credit limit to customers, based on their credit history and buying patterns on e-commerce platforms, digital footprint and device information. Customers get 14 days to make the payment, during which they can make additional transactions as well. However, failure to make a payment within 14 days will entail levying of a penal interest at the rate of 3% per month for the days that the amount stays overdue on a pro-rata basis, the company said on its website. The firm also offers customers to make payments via UPI through 'ePayLater UPI', to selected partner merchants. The company charges a commission per transaction from the merchant. According to the filing on the stock exchange, ePaylater generated a revenue of Rs 32 lakh for 2016–17 and incurred a net loss of Rs 1.75 crore, VCCircle reports. The startup previously raised $2 million (Rs 13.3 crore) in seed funding from three High Net worth Individuals (HNI). ICICI Bank's push into the Fintech world In an interview with VCCircle,…
