Qlarifi Raises £1.4M Pre-Seed Funding to Revolutionize BNPL Credit Transparency
In the rapidly evolving Buy Now, Pay Later (BNPL) sector, Qlarifi has emerged as a pivotal player, recently completing a notable pre-seed funding round aimed at enhancing credit reporting for BNPL transactions. The start-up successfully secured £1.4 million, attracting investment from esteemed entities such as HoneyComb Asset Management, Carthona Capital, and various angel investors, including former Australian rugby captain John Eales.
Qlarifi’s Innovative Approach to Credit Reporting
Qlarifi’s platform stands out by aggregating consumer credit data specifically for BNPL transactions. This feature provides lenders with a real-time overview of customers’ borrowing and repayment histories across multiple providers. By enhancing transparency in the credit reporting process, Qlarifi aims to:
- Improve underwriting decisions for BNPL providers
- Assist consumers in building a responsible credit history
Funding Utilization and Future Plans
The funds raised will be instrumental in developing Qlarifi’s advanced real-time data infrastructure, utilizing cutting-edge technology to streamline operations. Furthermore, the company plans to accelerate customer acquisition efforts in key markets, capitalizing on the burgeoning growth of the BNPL industry.
BNPL Industry Growth and Market Insights
The BNPL sector is experiencing a significant surge, with approximately 415,000 daily applications in the UK. This number far exceeds the 68,000 daily applications for traditional credit cards, indicating a shift in consumer preferences. According to Qlarifi, BNPL now commands a 5% market share in e-commerce transactions.
Leadership Insights
Qlarifi’s CEO and co-founder, Alex Naughton, expressed his enthusiasm about the company’s mission, stating, “Our reason for building Qlarifi was to create transparency and a fit-for-purpose solution to a problem that’s been frustrating us for too long. We’re proud that the industry has responded so positively. They’ve been crying out for the real-time information Qlarifi provides. This funding round reflects the confidence our investors have in our mission and enables us to take the next leap in our growth journey.”
Dean Dorrell, partner at Carthona Capital, added, “We’re delighted to invest in Qlarifi as they work to transform the rapidly growing BNPL market. With BNPL becoming an even more dominant force, their focus on delivering next-generation technology is perfectly timed to meet the industry’s evolving needs.”
For more information on the BNPL industry and its impact on consumer finance, visit Financial Times or explore our BNPL resources.
