Paytail aims to cross Rs 2000+ crore annual run rate by first half of 2023

Paytail enables millions of merchants to offer their customers zero-cost EMIs on all their products using QR codes in just a few taps. The QR code works across UPI Apps, Debit Cards, and Credit Card EMIs. The 'Scan and Pay' feature allows the buyer to convert any transaction with partner stores into an EMI for the chosen duration. The EMI options offer customers an instant credit limit of up to Rs 2 lakh with flexible no-cost EMI repayment tenures of up to 18 months, said Vikas Garg, Co-founder & CEO at PayTail.

“Paytail has EMI acceptability rails running across 85,000+ retailers who majorly are from Tier 2 and 3 cities. All the retailers have been onboarded through 45+ Institutional partnerships. We aim to serve Bharat beyond borders with our digital finance solutions and have forged partnerships with numerous multinational and Indian brands, including Voltas, Voltas Beko, V Guard, BlueStar, Hero Cycles, Hero Lectro, Hero Electric, Liv Guard, Liv Fast, UTL Solar, amongst many others,” Garg said.

“At Paytail, we have always allowed the regulations to be an enabler of extremely positive development in our growth. In fact, we believe that the new DLG guidelines, in all likelihood, would prove to be beneficial for the industry altogether over the medium term as the new DLG regulations free up investable capital for the business. In the earlier structure, there was a need to park funds upfront in FDs and monthly payments of credit costs. Now, regulated entities (REs) withhold a certain portion of the income to create a cushion for future credit costs. If the NPAs are lower, fintechs get to plough back the margins, and if NPAs are higher, there is an incremental payment. In either scenario, there is no fresh cash required for book building,” he added.

On growth journey, Garg said that they are currently at an annual GMV run rate of 1100+ crores, which is up by 50 percent Q-o-Q basis.

“We expect to double our disbursements in the next 6 months while maintaining/improving upon credit quality. In 2022, we recorded a 7X growth in disbursements, a 5X growth in net revenue and our merchant base also grew by 5X,” he said.