Leanpay’s BNPL solution provides instant installment payment solutions in Slovenia and Croatia for online purchases. The solution is much more flexible than traditional loans, as it allows users to spread the repayment over a longer period of time, and includes fully digitized processes.
Leanpay’s solution drew its inspiration from the Swedish fintech company Klarna, whose solutions provide payments for online storefronts and direct payments with post-purchase payments, and have already been integrated into the system of over a quarter-million e-commerce businesses.
According to Leanpay’s co-founder and CEO Misa Zivic, compared to Klarna, which has an average cart value of €150, Leanpay has three times that figure, mainly thanks to focusing on major purchases in consumer electronics, home furnishings, furniture, and sports equipment segment.
“Leanpay has three times the average cart value of Klarna thanks to our focus on major consumer purchases. We are committed to enable any customer to buy whatever they need by providing fair and easy financing in any shop”, Misa Zivic, co-founder and CEO, said in a statement.
The other difference is Leanpay’s focus on Central and Eastern Europe, a market that is almost untouched by global players, and where currently only traditional players offer digital credits, the company says. In countries such as Romania, Bulgaria, and Greece though, there are fintech startups, such as NewPay, that are working with the BNPL service and exploring the market.
Last year, the installment payment option specifically created for online buyers generated above €400 billion turnover globally, and according to some estimates, this number could double by 2025. Leanpay itself generated three times the turnover year-over-year in the first half of 2021.
The Slovenian company, founded at the end of 2016, will look to use the latest investment for expanding on other markets in the CEE region, with Hungary being the first. Leanpay is launching services there in 2022.
“There is exceptional growth potential in BNPL, and its regional expansion can also greatly alter online consumer behavior,” said Abel Galacz, CEO of Lead Ventures.
According to Galacz, Leanpay’s self-developed risk model, which can further teach itself through machine learning based on the experience and information gained, also adapts and manages the uniqueness of local markets.
“In addition, Leanpay’s management and team capabilities fit perfectly with the visionary yet regulated and well-defined expansion strategy that Lead Ventures also supports,” Galacz added.
SC Ventures is another VC fund that is investing in Leanpay, participating with half a million euros in the latest investment round.
“Leanpay has made fantastic progress in recent months and we are confident that this transaction can further accelerate this outstanding performance,” stated Jure Mikuz, SC Ventures’ managing partner.
“The nearly threefold increase in revenue and the trust of nearly 400 online webshops have encouraged them to continue to support the team in achieving common goals”, Mikuz concluded.