Split, a fintech startup that enables businesses to provide a ‘buy-now-pay-later’ service to their customers in Singapore and Malaysia, announced today it has secured an undisclosed amount of funding, led by 500 Startups.
Angel investors, including Louise Daley, Deputy CEO of AccorHotels Asia Pacific, also participated. With this, Daley has also joined Split’s Board of Directors.
Split was co-founded in 2018 by Dylan Tan (CEO) and Vishvesh Suriyanarayanan (CTO) as part of Entrepreneur First’s talent investment programme.
The startup gives businesses the ability to offer their customers the choice of paying in up to three instalments online, offline or via social commerce. Its technology can be integrated with e-commerce platforms, in-store, and for businesses that sell via chat apps or social media.
By using Split, businesses see incremental revenue through higher conversion and average transaction value, claims the company.
The service is completely free of charge to consumers with no interest, late fees, or hidden fees.
According to Tan, the global pandemic has shifted consumer spending behaviours considerably and many businesses are struggling to adapt.
“COVID-19 has brought enormous economic uncertainty – this means consumers are more mindful of the money they spend and businesses can’t keep offering unsustainable discounts. Split bridges that gap by making purchases affordable for consumers so businesses don’t have to slash prices,” he added.
“We’re giving consumers a more convenient alternative payment method with a business model that is also aligned with responsible spending. We don’t make money from interest nor do we charge consumers for missing payments — we’re taking a completely different approach by incentivizing good repayment behaviour instead of punishing financial hardship,” Tan explained.
The startup has partnered with several brands across Malaysia and Singapore in fashion, electronics, furniture, jewellery, personal care, fitness, gifts, F&B, and travel. Its clients include Switch and Urban Republic, and CG Computers.
Khailee Ng, Managing Partner of 500 Startups said: “While traditional financing options rely on charging interest or earning from missed payments, Split turned the model around and made it completely free for consumers. We see incredible potential in how their instalment payment service works not just for large retailers but also serves a massive longtail of small & medium businesses selling online, offline or via social commerce.”
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