The company plans on using the PeSeva team’s experience to build and expand lending solutions to aid their current B2B financial products.
Neokred, an Open Banking Stack which offers curated versions of issuance in the payment ecosystem has announced its first ever acquihire of PeSeva Technologies, a Buy-Now Pay-Later solutions provider.
The acquisition will help Neokred capture the current demand of Embedded lending to provide end-customers with easy, convenient and affordable loans in a seamless manner. The company plans on using the PeSeva team’s experience to build and expand lending solutions to aid their current B2B financial products.
One of the most popular forms of Embedded Lending has been Buy Now Pay Later or BNPL. As a product, BNPL is expected to grow by 72.7% on an annual basis to reach $6327.2 million in 2021, and India is likely to be one of the fastest-growing markets because of its demographics and high youth population percentage (Source – Q2 2021 BNPL Survey). It’s market share in the e-commerce space is also expected to grow from 3% in 2020 to 9% by 2024.
As part of the move, Sukhjinder Singh Gotra, Co-founder and CEO of PeSeva Technologies, will join Neokred as Head of Product.
Neokred is a Fintech infrastructure company that empowers corporates, fintechs and start-ups to pioneer their own banking services with the help of innovative tools. Aiming to democratize banking infrastructure by lubricating its interior processes, Neokred, with its technological propensity bridges companies and employees through its new-age API & SDK banking offerings. The Bengaluru-based startup, co-founded by Tarun Nazare and Rohith Reji in 2019, has issued more than 2 lakh cards since December 2020.
Speaking on the new development, Tarun Nazare, Co- founder and CEO, Neokred says, “We’re always on the lookout for outstanding people to join our mission of empowering corporates and start-ups to instigate their own financial services whilst keeping a keen eye on the next big thing in FinTech. PeSeva Technologies’ acquisition is a first for Neokred, and we are elated to have Sukhjinder join our team, bringing his product and market knowledge, as well as entrepreneurial energy. Over the last ten years, Embedded Lending has evolved to become a prominent form of financing, as a result we have entered this space to keep up with the current demand and the PeSeva team will be critical in supporting us in meeting our goals.”
Sukhjinder Singh Gotra, Co-founder and CEO of PeSeva Technologies says, “With the advent of ecommerce and the convenience it provides, Embedded Lending has become a popular option for consumers across India. We were amazed by the Neokred’s commitment of offering credit to all. We’re thrilled to be bringing such a wealth of experience and talent to this collaboration and are also convinced that this will open up a world of possibilities. We are excited to be embarking on this new chapter with Neokred. From here, I can only see upwards and onwards.”
Source: Business World