Bengaluru-based startup Yenmo has raised 9.2 crore rupee (US$1.06 million) in a funding round led by Y Combinator, with participation from Pioneer Fund, Zaka VC, and angel investors.

The company provides loans against mutual funds and plans to use the funding to expand its product offerings and enhance its technology platform.

Yenmo aims to introduce new secured lending options, including loans against stocks, and develop a savings account feature with competitive interest rates and liquidity access.

The funding will also help improve its digital platform for a faster loan application process, scale operations, and strengthen its team.

The company addresses ethical concerns in the lending sector, focusing on data security and customer treatment.

Yenmo currently offers loans against mutual funds at interest rates starting at 10.5%, lower than standard personal loan rates. Its platform is available via mobile apps for Android and iOS.