Financial services distributor MyMoneyMantra has raised $15 million (Rs 104 crore at the current exchange rate) from European investors IFSD BV and Vaalon Capital, marking the company’s first-ever external fundraising in its 30-year history.
The company will use the funds to further develop its pan-India reach, strengthen technology and deepen its existing financial partner relationships with non-banking finance companies (NBFCs), banks and insurance companies, an official statement said.
New Delhi-based MyMoneyMantra is a financial services marketplace that facilitates loans, credit cards and insurance covers to consumers.
The company was founded by Raj Khosla, a former KPMG executive, in 1989. MyMoneyMantra claims to be serving over four million customers across more than 50 cities, partnering with over 90 financial institutions. It employees over 2,500 relationship managers across India.
“We have been clocking impressive year-on-year growth across our extensive product suite. This investment is a fantastic endorsement from an international partner and comes at an opportune time as we are eager to capture an even larger share of the rapidly expanding Indian consumer market,” Khosla, founder and managing director of MyMoneyMantra, said.
According to the company, it generated Rs 7,000 crore ($1 billion) of credit-related products in FY2019.
“We have been very impressed with the quality of the MMM team, their long-standing relationships with NBFCs, banks and insurers and their robust processes and platform,” Adam Teeger of Vaalon Capital said. “They have a proven record of customer-focused service delivery and an established track record of success. We are particularly excited by the MMM team’s initiatives focused on leveraging data analytics, technology, and digital marketing.”
IFSD BV is a Dutch investment company based in Rotterdam. Switzerland-based Vaalon Capital is independent private equity and advisory firm founded in 2016 and is focused on making long-term investments in companies with significant growth potential.
Deals in the segment
Fintech companies have attracted considerable investor interest this year with a focus on micro-lending, payments and neo-banking services.
- July 2019: Neo-banking service provider NiYO Solutions raised $35 million in a Series B funding round led by Horizons Ventures and Chinese internet giant Tencent Holdings.
- June 2019: Recko, a fintech startup that helps companies reconcile digital transactions, raised $1 million in a seed round of funding from venture capital firm Prime Venture Partners.
- June 2019: Online payment gateway Razorpay raised $75 million in its Series C round from Ribbit Capital and Sequoia India.
- June 2019: Peer-to-peer lending platform i2iFunding secured an undisclosed amount in fresh funding from existing investor SucSEED Venture Partners.
- June 2019: Open Financial Technologies raised $ 30 million in Series B round from Tiger Global and Tanglin Venture Partners. The SME-focused company automates accounting, reconciliation and payment functions apart from offering other banking solutions.
- April 2019: Digital payments firm BharatPe, which helps kirana stores accept UPI payments from multiple wallets and offers them credit, raised $15.5 million from Insight Partners and existing investors Sequoia Capital and Beenext.