Vegapay, a fintech startup focussed on digital lending and card management, has secured $1.1 million in a pre-seed funding round. The funding was led by Eximius Ventures and featured contributions from various investors including DSP HMK, Capri Global, Upsparks Capital, MGA Ventures, and Climber Capital.
Notable individuals such as Arun Venkatachalam from Murugappa Group and Pratekk Agarwaal, a General Partner at GrowthCap Ventures, also participated in the funding round.
A Unique Financial Service
The core of Vegapay’s expertise lies in lending technology. It has engineered a system that empowers both regulated entities and fintech companies to expand their card issuance and bolster lending reach across India.
The central goal of Vegapay’s platform is to establish a micro-service-driven card and lending issuance stack. This innovative approach enables issuers to seamlessly integrate and deploy lending products tailored to the distinct needs of diverse consumer segments.
Vegapay aims to enhance its technology further, streamlining the adoption process for both institutional and non-institutional players. The pivotal aim of this technological advancement is to significantly reduce the time it takes for banks and fintech firms to launch new financial products.
Making Lending Simpler and Faster
Gaurav Mittal, CEO of Vegapay, outlined the company’s ambitions:
“Traditional banks and fintech players often take several months to introduce new financial products like credit cards and lending offerings. However, we’re positioned to help them slash this timeline by up to 90%, enabling our partners to roll out their products within a mere week. Our mission is to facilitate our partners in reaching the $1.5 trillion AUM milestone by delivering customised digital lending solutions with unparalleled speed.”
In tandem with its lending solutions, Vegapay is gearing up to develop an omnichannel lending solution, catering to an array of product types including co-lending, secured credit, and unsecured credit.
Addressing market dynamics, Pearl Agarwal, Founder and Managing Director of Eximius Ventures, highlighted that:
“According to an RBI report, 65% of credit card penetration is concentrated in tier I cities, leaving tier II and III cities with significantly lower penetration rates. To address this growing market, Vegapay has devised an ingenious plan.”
Vegapay, established in October 2022, was founded by seasoned fintech professionals and banking experts including Gaurav Mittal (formerly of Ex-Zeta), Himanshu Agrawal (formerly of Amazon), Puneet Sharma (formerly of BharatPe), and Abhinav Garg (formerly of Podeum). This digital lending and card management platform aims to catalyse lending innovation by providing tailored solutions to regulated entities and fintech entities within India.
