IndMoney Raises $75M in New Funds at $640M Valuation
The fundraising – which sources said valued IndMoney at $640 million after investment – saw participation from Steadview Capital, Tiger Global and Dragoneer Investment Group, all of which invested $25 million each, according to the regulatory documents.
The latest funding round is expected to see another injection of $10 million over the next few weeks as new investors enter. IndMoney chief executive Ashish Kashyap, who previously founded travel booking portal Goibibo, also invested in the new funding. Contacted by ET, Kashyap declined to comment on new investors since the round is not yet closed.
IndMoney’s total capital raise now stands at $133 million.
Founded in 2019, IndMoney allows users to track and organize their finances in one platform and helps them invest in various financial instruments including mutual funds, term deposits, US stocks as well as bonds. It also helps users with wealth planning solutions as part of its premium offering.
The startup is also looking to launch a credit card-based product for its user base, in conjunction with its neobank. It will also launch domestic stock brokerage services allowing users to invest in Indian stocks this year and is in the process of acquiring the necessary licenses.
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The company launched its neo-banking platform last year in association with SBM Bank India and expanded it to half a million accounts in three months.
“For us, the motivation is very simple. We’ve acquired 3.5 million high-quality users, which is one of the hardest parts of running a fintech business. We will use the capital proceeds to grow from 25 million to 30 million customers over the next 12 to 18 months. We are also working on setting up the trading or ordering system for our domestic brokerage offering. Additionally, with access to rich data, we will also seek to issue native credit cards to our user base,” Kashyap said in an interaction with ET.
Since its launch, IndMoney says it has onboarded 3.5 million registered users to its platform, which tracks more than $15 billion in investments, according to the company. The company plans to issue lines of credit worth Rs 75,000 to Rs 1 lakh with its card product.
“Steadview has been impressed with the ambition and execution of the IndMoney team in creating India’s first digital bank, redefining the way people build financial security with an easy-to-use, mobile-native platform. easy to use,” said Ravi Mehta, founder of Steadview. Capital city.
The past year has seen the rise of wealth management fintechs which have raised significant capital.
In October, Groww raised $251 million from Iconiq Growth and others, which tripled the startup’s valuation to $3 billion in six months after its last raise. Cred, led by serial entrepreneur Kunal Shah, also closed a $251 million seed round, with investors attributing a $4 billion valuation to the three-year-old startup. Even payments-focused fintechs, including Paytm and PhonePe, have tried to capture a slice of India’s rapidly growing online wealth management landscape by launching mutual funds and other financial instruments.