Bengaluru-based fintech platform Stable Money has raised US$20 million in a series B funding round.

The round was led by Fundamentum Partnership, backed by Nandan Nilekani, with participation from Aditya Birla Ventures, Z47, RTP Global, and Lightspeed.

With this, the company has raised a total of US$40 million to date.

Founded in 2022, Stable Money focuses on fixed-income investment products like fixed deposits and bonds. It manages over 3,000 crore rupee (US$351.5 million) in assets and serves more than 2 million users.

The platform lets users invest in fixed deposits without a savings account and offers features like instant withdrawals, trial fixed deposits, and credit cards backed by fixed deposits.

The company plans to use the funds to expand its product offerings, strengthen partnerships with banks and NBFCs, and grow its presence in Tier II and Tier III cities.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ India’s shifting financial landscape creates perfect conditions for fixed-income platforms

India’s evolution from a high-inflation environment (averaging over 9% between 2006-2013) to a more stable economy has created fertile ground for fixed-income investment platforms like Stable Money 1.

This macroeconomic stabilization has coincided with India’s digital revolution, where the country has become the second-largest internet market globally with projections of 829 million users by 2021 1.

The Aadhaar biometric identity system, covering 82% of the population, has further enabled fintech innovations by creating a digital infrastructure that supports seamless financial transactions 1.

With India’s fintech market valued at $584 billion and projected to reach $1.5 trillion by 2025, platforms focused on specific niches like fixed deposits are finding substantial growth opportunities 2.

The country’s globally-leading 87% fintech adoption rate demonstrates how quickly digital financial solutions are being embraced across the population 2.

2️⃣ Tier II and III cities represent the next frontier for fintech growth

Stable Money’s strategy to expand into Tier II and III towns aligns with a broader trend reshaping India’s startup landscape, where 45% of recognized startups now originate from these smaller cities 3.