Kul Bhushan · · 2 min readVenture Catalysts co-leads $1.7m round of Indian fintech startup
India-based fintech startup The Money Club has secured US$1.7 million in a pre-series A round led by SOSV and Venture Catalysts.
The round also saw participation from Blume Founders Fund, LetsVenture, Keiretsu Forum, Rockstud Capital, Astarc Ventures, and LIV Advisors.
Photo credit: The Money Club
Founded in 2016, The Money Club runs an AI-based peer-to-peer money pooling platform to help India’s lower-middle-class population save, borrow, and invest. The platform is inspired by chit funds, rotating savings and credit schemes popular in countries like India, Sri Lanka, and other Asian markets.
The company aims to “disrupt” India’s largely unorganized chit fund space, which it estimates to be worth US$50 billion, and bring more security and transparency to the sector. “Users have been pooling money for over 700 years, and this market has been growing 15% CAGR for the last 10 years,” said Manuraj Jain, founder and CEO of The Money Club, in a statement.
To date, The Money Club has onboarded more than 200,000 users on its platform, who have pooled 400 million rupees (US$5 million) by forming 17,000 money clubs.
The startup aims to use the fresh capital to improve its technology platform and operations.
The Money Club previously raised an undisclosed amount in a seed round led by Venture Catalysts, with participation from LetsVenture and Keiretsu Forum.
Currency converted from Indian rupee to US dollar: US$1 = 74.64 rupees.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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