Fintech Startup Vegapay, Raises $1.1 Million in Pre-Seed Funding Round Led by Eximius Ventures

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Fintech Startup Vegapay, Raises $1.1 Million in Pre-Seed Funding Round Led by Eximius Ventures
Fintech Startup Vegapay, Raises $1.1 Million in Pre-Seed Funding Round Led by Eximius Ventures

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 and lending penetration in India

National, August 16, 2023: 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 @ GrowthCap Ventures), and a host of angel investors.

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).

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 and lending penetration in India. Today, card management technology is archaic in nature and has a monolithic architecture, making it difficult for issuers and co-brand partners to issue flexible card and lending products. Vegapay aims to create a microservice-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.

Digital lending is one of the fastest-growing fintech segments in India. In fact, it has grown exponentially from USD 9 billion to USD 110 Billion from 2012 to 2019, and is further expected to reach USD 350 Billion by the end of 2023 (39.4% CAGR), by which time the total retail and microlending AUM will be USD 1.5 Trillion.

Further, given rapid digital adoption in the country and the RBI’s positive stance towards the issuance of credit, we are on the verge of a Digital Lending explosion.

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 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 USD 1.5 trillion in AUM by providing customised digital lending solutions at an unprecedented speed.”

Vegapay intends to use the funding to further develop their technology to make frontline adoption easier for institutions and non-institutions. Their vision is to liberate FIs and Fintechs from every technical barrier that hinders running a lending programme. Additionally, they aim to create an omni-channel 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% of 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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