Paytail

Paytail (operated by TechXR Innovations Pvt. Ltd.) is a fintech startup revolutionizing offline retail in India by enabling instant, paperless EMI solutions.The company targets the underserved Tier 2/3 markets, addressing the $1 trillion offline commerce sector where 90% of retail transactions still occur. Paytail’s mission is to democratize access to affordable credit for small merchants and consumers, bridging the gap between lenders and offline retailers through a scalable, tech-driven platform.

Core Products and Services

• Offline Checkout EMIs: Zero-cost EMIs for purchases ranging from ₹5,000 to ₹3 lakh, with tenures up to 24 months. QR-code-driven “Scan and Pay” feature compatible with UPI, debit cards, and credit card EMIs.

• Merchant App: Onboarding in 30 seconds, real-time sales tracking, and instant settlement (within 30 minutes).

• Consumer App: EMI eligibility checks, product discovery, and repayment tracking.

• Enterprise Solutions: Custom integrations for corporates like Voltas, Samsung, and Hero Cycles, covering 70% of their distribution networks.

Unique Value Proposition

• Instant Paperless EMIs: Eliminates tedious paperwork and credit checks, enabling merchants to offer zero-cost EMIs in under 30 seconds.

• Four-Layered Tech Stack: Integrates enterprise partners, merchant apps, real-time lender APIs and consumer interfaces for seamless transactions.

• Hyperlocal Focus: 60% of revenue comes from Tier 2/3 cities, where traditional credit penetration remains low.

Key Milestones

• Raised $1.5 million in a 2021 seed round led by Cholamandalam Investment and Finance Company.

• Achieved operational profitability within two years (FY23) with a 9x revenue growth (₹1,200 crore GMV in FY23 vs. ₹142 crore in FY22).

• Partnered with 85,000+ merchants and 45+ financial institutions, including HDB Financial, ICICI Bank, and Piramal.

• Recognized for enabling 7x GMV growth and expanding into EV, consumer durables, and lifestyle verticals.

Business Model & Revenue Streams

• Merchant Transaction Fees (70%): 1–3% per transaction, charged to retailers for enabling EMIs.

• Interest Income (25%): From lenders on EMI products, with rates starting at 11.99% p.a.

• Subscription Fees (5%): Premium analytics and gamification tools for merchants.

Geographic Mix

• Tier 2/3 Cities: 60% of revenue (e.g., Ujjain, Guwahati, Imphal).

• Metros: 40% (Delhi, Mumbai, Bengaluru).

Customer Segmentation

• B2B: 85,000+ merchants (SMEs), corporate partners (Voltas, Livguard), and lenders (HDB Financial).

• B2C: 7 million+ consumers, primarily salaried individuals and small business owners.

Top Clients & Partnerships

• Financial Institutions: HDB Financial, ICICI Bank, Cholamandalam, Piramal Finance.

• Enterprise Brands: Voltas, Samsung, Hero Cycles, Vivo, Oppo, Bluestar.

• Technology Partners: Razorpay, Cashfree, CC Avenue for payment integrations.

• Strategic Investors: Cholamandalam Investment and Finance Company, MiH Ventures.

Future Outlook & Strategic Priorities

• Merchant Network Expansion: Target 400,000+ merchants by 2026, focusing on Southern and Eastern India.

• New Products: Launching “sachet loans” (small-ticket EMIs <₹5,000) and embedded insurance.

• Geographic Penetration: Enter underserved states (Assam, Odisha) and explore Southeast Asia.

• Regulatory Scrutiny: RBI’s evolving digital lending guidelines impacting EMI structuring.