Exclusive: Y Combinator leads $2.1m round of Indian fintech firm

Koshex, an India-based fintech startup, has raised US$2.1 million in a seed round led by Y Combinator, the former told Tech in Asia.

Rally Cap Ventures, Goodwater Capital, Beagle Partners, and The Fintech Fund also took part in the round, along with India- and US-based angel investors in the fintech space.

Koshex founders Komal Kumar Gupta (left) and Akash Agarwal / Photo credit: Koshex

The fresh funds will be used to develop Koshex’s tech and build its distribution channels.

Founded in 2021, Koshex helps users manage their finances by providing services like budgeting, expense tracking, and customized investment solutions. It will also allow users to invest in fixed-income and market-related products, including mutual funds, fixed and smart deposits, and digital gold.

Komal Kumar Gupta – previously an engineer at Yahoo – founded the company with former Ola executive Akash Agarwal.

“Koshex will help enhance the lifestyle of young people by enforcing good financial habits and helping them achieve their financial goals,” Agarwal said.

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Currently, Koshex has 400,000 registered users and 250,000 monthly active users on it’s platform. The company aims to hit 500,000 monthly active users by the end of 2022.

Koshex’s fundraise comes amid rapid growth in India’s fintech sector, which is poised to hit US$1.3 trillion by 2025. The country is currently the third-largest fintech ecosystem in the world, behind only the US and China.