Paytail, a leading retail EMI provider to consumers and loan to merchants, has reported seven times increase in gross merchandise value of ₹950 crore in last 12 months.

The company aims to double its disbursements in six months while improving its credit quality. Paytail also targets to cross annual run rate of ₹2,000 crore in the first half of this year. It registered five times growth in net revenue and merchant base while maintaining an NPA at 3.2 per cent in 2022.

Vikas Garg, Co-founder and CEO, Paytail said the improved retention and increased disbursals are driven by a powerful growth hack, wherein the company scores 85,000 merchant partners based on their credit and business behaviour with the company.

After two credit cycles with a sizable merchant cohort, the company developed a robust scoring system based on customer credit behaviour, vintage, volume and other critical parameters, he said.

In the next 3 years, Paytail is gearing up to become the largest affordability service provider for offline stores beyond tier-I cities and is looking to enter underserved States in the southern and eastern parts of India.

Franchises network

Since inception in 2021, the company has built a large network of 75 million pre-approved users and 85,000 merchants and plans to enable category-focused trade between 3 lakh retailers and 150 million Indian households in the near future.

Paytail also has some of the largest lending franchises in the country on its platform, ensuring a regular stream of capital supply and greater value to its merchant partners and customers alike.

In 2021, Paytail raised over $2 million from Cholamandalam Investment & Finance Company and other marquee angel investors from a Seed round. Paytail has forged lasting partnerships with Hero Cycles, Hero Lectro, Hero Electric, Liv Guard, Liv Fast, UTL Solar, and V Guard, among others. The company has been adding 7-10 new brands every 3 months, exhibiting a strong product pull among corporate clients.

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