The new money will be used to extend Vegapay’s product offerings, notably in product development and regulatory compliance. In 2023, the startup raised $1.1 million in its first institutional funding round, headed by Eximius. Mittal, Himanshu Agrawal, Puneet Sharma, and Abhinav Garg founded the firm in 2022. It offers a B2B digital loan and credit card administration platform.
B2B fintech firm Vegapay raised $5.5 million in a seed fundraising round headed by Elevation Capital, with participation from previous investor Eximius Ventures.
The business plans to use the new capital to expand its product offerings, with a focus on product development and regulatory compliance.
This funding will allow the business to assist banks, NBFCs, and other financial institutions in establishing and managing products through adaptive credit solutions, according to a release.
Vegapay’s product portfolio enables financial institutions to provide seamless, customizable products that fulfill client expectations and improve service offerings.
Furthermore, the capital infusion will help Vegapay improve its product suite by focusing on development, compliance upgrades, and employing top people for innovation.
“In the credit card space, there are legacy companies, but most of the banks are not liking it for obvious reasons, and therefore new-age players like us are solving the core pain for a bank to offer credit cards or any credit products,” Gaurav Mittal, cofounder and CEO of Vegapay,
It provides a framework for automating solutions such as card management systems, Unified Payments Interface (UPI) on credit lines, UPI on credit cards, and independent credit-based programs such as origination, loan collection, and co-lending management.
Mittal, Himanshu Agrawal, Puneet Sharma, and Abhinav Garg founded Vegapay in 2022. The company provides a B2B digital loan and credit card management platform. It seeks to provide a microservice-driven card and lending issuance stack that will allow issuers to seamlessly integrate and issue lending products tailored to the specific demands of customer cohorts.
The startup is currently collaborating with more than six institutions, including a large public sector bank with whom Vegapay will introduce a credit card next month. It is also launching a credit line based on the UPI technology in collaboration with another private sector bank.
Eximius led the company’s first institutional investment round in 2023, raising $1.1 million.
The Indian fintech sector is anticipated to surge to $2.1 Tn by 2030, with loan tech emerging as the most profitable sub- category.
