ePayLater also has an NBFC licence from RBI. Credit: StockSnap from Pixabay.

Indian fintech startup ePayLater, which offers zero-cost credit to small and medium enterprises (SMEs), has raised $10m in funding.

The investment came from Responsability Investment, Blue Ashva Capital, Pravega Ventures and others, Economic Times reported citing ePayLater founder Aurko Bhattacharya.

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ePayLater, which specialises in pay later services for SMEs, plans to use the proceeds to expand its services across the country and update its product portfolio.

The fintech operates in conjunction with B2B firms like Walmart, Metro Cash and Carry, BigBasket and other FMCG brands.

The SME finance solution offers 14-day interest-free credit and claims to have disbursed over $136.05m (INR10bn) in credit to retailers.

“So far, in the past couple of years, we have been developing our products in such a manner that it is best suited for this segment of retailers,” Bhattacharya was quoted by the publication as saying.

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“So, the newly infused funds will be used to continue developing the correct product-market fit,” he added.

ePayLater’s wholly-owned subsidiary possesses a Non-Banking Financial Company (NBFC) licence from the Reserve Bank of India (RBI).

However, its credit is financed through partner lenders and non-banks.

Last week, Bright Money raised $31m in a Series A funding round.

It is a US-based artificial intelligence (AI) personal finance platform that also has a presence in India.

Earlier this month, India introduced the Account Aggregator (AA) system that aggregates all financial data of users in a single place and offers credit services based on that data.