NEW YORK, Jan. 28, 2021 /PRNewswire/ -- Scalapay, a third-party payment solution that enables customers to buy now and pay later (BNPL) without interest, today announced that it has raised a $48M US ($40M Euros) seed round led by Fasanara Capital that also included Baleen Capital, and Italian Family Office Ithaca Investments.
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.
"Scalapay recently signed a partnership with Raisin Bank, the leading pan-European Banking-as-a-Service provider. Raisin Bank offers customized and innovative products to a large variety of customers, including Fintech companies, Family Offices and Investment Companies. Thanks to its passporting Raisin Bank will support Scalapay's rollout throughout the EU."
The company assumes all risk of fraud by paying the seller immediately and in full upfront. Using Scalapay, merchants experience higher sales volume from existing customers while attracting new ones. The average value of orders when customers pay with Scalapay is 49% greater and the average increase in the number of paying customers is 26% greater.
"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."
Customers 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."
Scalapay already has over 1,000 merchants across France, Italy and Germany. Customers include merchants such as Decathlon, Calzedonia, Bata, Aosom and Bricobravo, which have experienced an increase in orders and built better customer relationships since introducing Scalapay. Bricobravo, for example, experienced a 40% increase in orders in the first year of using Scalapay as a payment provider and unprecedented customer retention.
"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." 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.
Joining Simone and Johnny in the founding team are Raffaele Terrone, CFO who previously worked as an investment banker at Goldman Sachs, Mirco Mattevi, Head of Product who previously worked at Afterpay and Daniele Tessari, Sales Manager with experience in online & physical retail.
Scalapay is an innovative payment method for ecommerce merchants in Europe that allows customers to buy now and pay later, in three convenient installments, without interest. Before Scalapay, co-founders Simone Mancini and Johnny Mitrevski built and operated two online platforms where they witnessed first hand the challenges facing retailers such as customer acquisition, conversion, retention and all the associated time consuming back-office tasks. They developed Scalapay as the first product in an exciting roadmap to help merchants solve these problems and offer their customers a better experience. Scalapay currently provides retailers the opportunity to increase sales without risk while paying the seller immediately and in full upfront.