Qlarifi Raises £1.4m as Regulation Looms in BNPL Sector

Qlarifi, a startup focused on providing real-time buy now pay later (BNPL) credit database services, has successfully raised £1.4 million as the sector anticipates stricter regulations set to be enforced by early 2025. The UK Treasury has indicated that forthcoming legislation will impose a more stringent regulatory framework on BNPL facilities. The new rules are likely to require BNPL providers to conduct affordability checks and report users' activities to credit agencies, aligning with traditional debt products like credit cards. Established in 2023, Qlarifi aims to support BNPL lenders by leveraging consumer transaction data to enhance underwriting decisions. Co-founders Alex Naughton and Loic Berthou express their commitment to bring transparency and offer a viable solution to improve BNPL lending practices and consumer credit building. The funding round included notable investors such as HoneyComb Asset Management, Carthona Capital, and former rugby star John Eales. Carthona Capital's Dean Dorrell expressed enthusiasm about supporting Qlarifi's mission in the evolving BNPL market.