The Bangalore-based fintech startup has raised nearly $38 million till date, according to data

India’s Bangalore-based fintech startup Simpl has raised $40 million as it looks to expand its online buy now, pay later (BNPL) service’s offerings in the world’s second-largest market.

Valar Ventures and IA Ventures led the six-year-old startup’s Series B round. LFH Ventures and some existing investors also participated in the round. According to publicly available data, Simpl has raised nearly $38 million till date.

Simpl, runs a pretty simple buy now pay later service. The company partners with brands across industries and sectors, and ties up with them to let customers pay at a later date, rather than paying at the moment.

Some of Simpl’s partners include telecom network Jio Platforms, food delivery service Zomato, pharmacy 1MG, grocer BigBasket and ticketing platform MakeMyTrip.

Buy now, pay later (BNPL) services have existed in India for several years but have started to gain fast traction only in recent quarters as e-commerce and digital payments increase their reach in the country.

One of the factors that is making these services popular among consumers is the trust deficit that exists between them and the services with which they are engaging, said Nitya Sharma, co-founder and chief executive of Simpl, pointing to continued popularity of cash as the payment method for e-commerce firms.

Additionally, Simpl now also offers payments for a slew of regular bill payments such as mobile recharges, electricity, water, gas payments among others. Users can get a credit limit assigned to them, which they can then use to clear up these payments. They can then repay their used up credit and continue to enjoy the same benefits.

Launched in 2015, Simpl claims to have processed 47 Million transactions till date, done by some 7 million users on its platforms. The company has tie ups with more than 5500 merchants, with the number slated to grow with this fresh fundraise.