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Fintech Vegapay Raises $1.1 Million In Pre-Seed Round Led By Eximius Ventures

Vegapay intends to use the funding to develop its technology further to make frontline adoption easier for institutions and non-institutions

Fintech Vegapay Raises $1.1 Million In Pre-Seed Round Led By Eximius Ventures
POSTED ON August 16, 2023 3:55 PM

Digital lending and card management Fintech start-up 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, GrowthCap Ventures) and a host of angel investors.

Vegapay is building a tech stack and card management system that enables regulated entities as well as fintech to issue and further increase card as well as lending penetration in India. 

Digital lending is one of the fastest-growing fintech segments in India. In recent times, it has grown exponentially from USD 9 billion to $110 billion from 2012 to 2019 and is further expected to reach  $350 billion by the end of 2023 (39.4 per cent CAGR), by when the total retail and microlending AUM will be $1.5 trillion.   

Gaurav Mittal, co-founder and CEO of Vegapay, stated “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 per cent. 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.” 

Vegapay intends to use the funding to develop its technology further to make frontline adoption easier for institutions and non-institutions. Additionally, it aims to create an omnichannel lending solution, which will help institutions customise the type of product they choose to offer such as co-lending, secured credit, unsecured credit, and more. 

Pearl Agarwal, founder and managing director of Eximius Ventures said, “Credit card products have historically been targeted at particular demographics in Tier I cities, with the focus of attaining high-income customers. As per an RBI report, 65 per cent 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.” 

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