Bengaluru, Nov 2 (IANS): Indians have found value in instant online credit during Covid times with digital financial services player Capital Float financing customer purchases worth Rs 400 crore in short span of seven months since March, witnessing 350 per cent growth.

The growth has largely come in its its 'buy now pay later' customer base that saw a flurry of activity during the pandemic as customers preferred postpone their actual spending while continuing to pursue their buying.

Capital Float has tied-up with e-commerce and travel players to offer its instant online credit to millions of consumers pan-India. The company crossed one million customer mark earlier this month.

The biggest jump in its BNPL customers came during the weeks of Indian e-commerce festive sales when the numbers grew by over 100 per cent. Capital Float expects to double its customer base to 2 million by the end of this fiscal year.

The company's customer base comprises of a mix of salaried and self-employed individuals, spread across more than 300 cities in India.

'Buy now pay later' increases the purchasing power of customers through flexible credit options such as instant zero cost or low-cost EMI with customisable repayment terms. This model has been gaining traction among Indian consumers as it offers both convenience and affordability options as the shift to online shopping continues to accelerate.

Gaurav Hinduja, Co-Founder, Capital Float, said: "Buy now pay later as a product has proven to be a standout success among millennials who constitute a substantial part of digital India. Over 70 per cent of our customers are between 25-40 years of age and 20 per cent are new to credit. These customers are looking for digital-first financial products to make everyday goods and services more accessible, convenient and affordable."

Since the Covid-19 pandemic, the e-commerce sector has grown rapidly. Capital Float has seen a 2X increase in online spending among its own customer base in September compared to pre-pandemic levels. As a consequence, it has also witnessed a huge increase in demand for small-ticket digital credit facilities, particularly for online purchases.