Third-party buy now, pay later (BNPL) instalment payments service provider Scalapay has secured $48m in a seed funding round.
The fundraising was led by Fasanara Capital, which was joined by Baleen Capital and Italian family office Ithaca Investments.
The latest investment comes after Scalapay forged a partnership with pan-European banking-as-a-service (BaaS) provider Raisin Bank.
Raisin Bank provides customers including fintech firms, family offices and investment firms with access to customised products.
Scalapay said that Raisin Bank will help the company’s roll-out across the EU bloc.
Its BNPL services allow customers to pay in three monthly instalments with zero interest.
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By GlobalDataScalapay provides immediate and full upfront payment to its merchants partners, bearing all the risk of fraud.
Customers choosing Scalapay during checkout can use a Visa, Mastercard, Amex, or a bank account to make payments.
Once the transaction is completed, the instalments are debited automatically from the customer’s account on the due dates.
In Europe, Scalapay already serves more than 1,000 merchants in France, Italy and Germany.
These merchants include Decathlon, Calzedonia, Bata, Aosom and Bricobravo.
Scalapay earns money by charging merchants an average fee of 4.2% of the order total.
Scalapay co-founder and CEO Simone Mancini said: “When comparing solutions used by merchants to improve customer experience and their bottom line, interest-free instalments stand apart for the high return on investment.
“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 e-commerce experience magical.”
Fasanara Capital CEO Francesco Filia said: “I was impressed with the fast growth of the company and the underlying model.”
Baleen Capital managing partner Fang Li said: “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.”
Last September, another BNPL firm Affirm, which is based in the US, received $500m in a Series G funding round.
In the same month, Sweden-based BNPL player Klarna secured $650m in an equity funding round, valuing the firm at $10.65bn.
