Klarna's Italian rival Scalapay bags £35M, plans to scale its buy now, pay later service in UK in 2021
With the digital transformation, Buy now, pay later (BNPL) options like Klarna, Clearpay are sweeping over the globe, especially when consumers are looking for more flexible and responsible methods to pay online. Based out of Milan, Scalapay is a payment method for e-commerce merchants in Europe that allows customers to buy now and pay later (BNPL), in three convenient installments, without interest.
Raised GBP35 million
Recently, the company has secured a £48 million (approx GBP35 million) funding in a seed round led by Fasanara Capital that also included Baleen Capital and Italian Family Office Ithaca Investments. Founded by Johnny Mitrevski, and Simone Mancini, Scalapay breaks up payments into three easy installments with zero interest, helping merchants grow sales, acquire new customers, and provide a better experience to existing customers.
“Our mission is to empower merchants to deliver magical customer experiences,” said Simone Mancini, co-founder and Chief Executive Officer. “When comparing solutions used by merchants to improve customer experience and their bottom line, interest-free installments stand apart for the high return on investment. We immediately have a big impact on revenues and the integration effort is minimal,” said Mancini. “This new funding allows us to support our pipeline of merchants across Europe and further our mission by giving merchants exciting tools to make their ecommerce experience magical.” As informed to UKTN, the Italian Klarna rival will use the latest funding to improvise its tech platform, and will be growing its footprint in all current locations, including the UK in 2021.
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How to use Scalapay?
To make use of BNPL, customers can choose Scalapay as a checkout option, set up an account in 2-3 minutes, and pay with a Visa, Mastercard, Amex, or bank account.
The installments are automatically debited from the customers’ payment method on the due dates. “I was impressed with the fast growth of the company and the underlying model,” said Francesco Filia, CEO of Fasanara Capital. “They have shown resilience during a difficult period and I’m excited by where the company is headed.” “Scalapay’s platform delights customers while driving dramatic results for merchants,” said Fang Li, Managing Partner of Baleen Capital. “As a long-time investor in the BNPL industry, I have been beyond impressed by Scalapay’s team, execution, and product vision.
I believe the company is on the way to building a valued and leading partner for European retailers.”
1000 merchants across countries
At present, the Italian fintech has over 1,000 merchants across France, Italy, and Germany. Customers include merchants such as Decathlon, Calzedonia, Bata, Aosom, and Bricobravo. According to Bricobravo, the company experienced a 40% increase in orders in the first year of using Scalapay as a payment provider and unprecedented customer retention.
The easy implementation of setting up Scalapay on the backend helps merchants set up the platform within 1-5 days depending on their software.
The average fee paid by the merchant is 4.2% of the order price.
“Scalapay eliminates pain points for merchants and customers who benefit from its unique platform,” said Stefano Finco, the Omnichannel Director Europe for Bata. “We’ve seen AOV increase by 48% online and 200% increase in our physical stores with Scalapay.”