Fintech startup Vegapay, a digital lending and card management platform has raised $1.1 million in a pre-Seed funding round led by Eximius Ventures along with DSP HMK, Capri Global, Upsparks Capital, MGA Ventures, Climber Capital, Arun Venkatachalam (Murugappa Group), Pratekk Agarwaal (General Partner at GrowthCap Ventures) and a host of angel investors. The platform intends to use the funding to develop their technology further to make frontline adoption easier for institutions and non-institutions.
“The banks and the fintech players take months to launch new financial products like credit cards and lending offerings. However, we can help them reduce the time taken to bring products to the market by 90%. This would enable our partners to launch their products in just one week. Our mission is to assist our partners in achieving the $1.5 trillion AUM by providing customised digital lending solutions at an unprecedented speed,” said Gaurav Mittal, co-founder and CEO of Vegapay.
Vegapay is building a lending tech stack and card management system that enables regulated entities as well as fintechs to issue and further increase card as well as lending penetration in India. As per an official statement, the platform aims to create a micro service driven card and lending issuance stack that would enable issuers to seamlessly integrate and issue lending products that can cater to the unique needs of consumer cohorts.
Additionally, they aim to create an omni-channel lending solution, which will help institutions customize the type of product they choose to offer such as co-lending, secured credit, unsecured credit and more.
“As per an RBI report, 65% of the credit card penetration is present in tier I cities. Comparatively, the penetration in Tier II and III cities has been significantly lower. However, new businesses have started emerging in a rapid manner within tier II and III cities. To service this growing audience, Vegapay has devised an ingenious plan to provide a credit card management stack and lending solutions to BFSI and fintech players to issue customizable products for this cohort,” said Pearl Agarwal, founder and managing director, Eximius Ventures.
Vegapay was co-founded in October 2022 by senior fintech experts and banking industry veterans, Gaurav Mittal (Ex-Zeta), Himanshu Agrawal (Ex-Amazon), Puneet Sharma (Ex- BharatPe) and Abhinav Garg (Ex-Podeum).