Buy Now, Pay Later Software Startup Company Scalapay Raises $48 Million in Seed Round

By James White Monday, February 8, 2021

Software that allows you to pay for your digital purchases in installments rather than one lump sum is becoming more and more common in today's bustling ecommerce industry. Startup company Scalapay, based out of Milan, Italy, recently succeeded in raising $48 million for its business in a seed round last month as the company joins others in the buy, now, pay later (BNPL) platform.

The business received funding from firms including Ithaca Investments, Baleen Capital, and lead investor Fasanara Capital in the seed round. Fasanara describes itself as an “independent, owner-managed alternative asset management company.” The firm has also invested in another payment startup company, Knoma, which is focused on dispersing tuition payments over a series of installments.

Businessman paying for something with a credit card on his smartphone.

Fast and Simple BNPL Software

The BNPL startup company was founded in 2019 by entrepreneurs Simone Mancini and Johnny Mitrevski. Simone is now CEO of the business, and Mitrevski has taken on the role of CTO. The software designed by the company allows consumers to break down their purchases from digital marketplaces supporting the platform into three monthly, interest-free installments. The fintech startup company pays the merchant upfront, assuming the risk of fraud on behalf of the retailer.

"Our mission is to empower merchants to deliver magical customer experiences," Mancini said. "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.”

The startup company also claims that orders using the software are on average 49% greater in value than normal. Furthermore, the business finds that 26% more customers checkout when Scalapay is offered.

BNPL Thriving

BNPL software startup companies are emerging and growing rapidly, especially given the impact of the COVID-19 pandemic on the ecommerce industry. Not only has the business been invigorated by a flux of online purchases, but BNPL services are doing especially well. Money can be tight these days for those whose jobs have been directly impacted by the pandemic, so the ability to break down larger purchases into smaller increments is a very helpful option. Forbes reported that $24 billion in spending was accounted for by BNPL platforms during 2020.

Scalapay, while largely used across Europe, is looking to break into the US market. The startup will have to compete with several businesses in the industry, including AfterPay, Paypal, and Affirm. AfterPay has garnered over $375 million from investors and the business boasts a market cap of over $29 billion.

About the Author

Headshot for author James White

James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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