500 Startups invests in pay-later startup Split

Split, a fintech startup that enables businesses to offer installment payment plans to their customers, said it has raised an undisclosed amount of seed funding in a round led by 500 Startups.

The funding was rounded off by global angel investors, including AccorHotels Asia Pacific deputy CEO Louise Daley. With her investment, Daley also joins the startup’s board of directors, according to a statement.

The Split team / Photo credit: Split

Split provides businesses with a buy-now-pay-later solution that lets customers make up to three interest-free payments. The startup does this by paying businesses upfront, then managing the monthly payments from consumers. Companies are charged a transaction fee when customers opt to pay with Split, the statement said.

According to the startups’s CEO, Dylan Tan, the global pandemic has shifted consumer spending behaviors considerably, leaving many businesses struggling to adapt.

“Covid-19 has brought enormous economic uncertainty. This means consumers are more mindful of the money they spend, and businesses can’t keep offering unsustainable discounts,” he explained.

The fundraise comes as the startup continues to scale its platform across various industries, according to the statement.

Split, which operates in Singapore and Malaysia, was co-founded in 2018 by Tan and Vishvesh Suriyanarayanan as part of the talent investment program of global venture builder Entrepreneur First.

The startup started off by enabling installment payments in the travel industry, then it expanded to support transactions in the consumer goods and services spaces.

Now, Split supports major ecommerce platforms, in-store purchases, as well as social commerce apps and websites. Over 30 store partners have integrated its solution into their operations.