The Money Club, an innovative on-demand liquidity platform, has raised $2.5 million in a Series A round led by Prudent Investment Managers. The funding round included investments from high-net-worth individuals from Singapore and Dubai besides 1Crowd AIF and existing investors which are Venture Catalysts, LetsVenture, Z21 Ventures, and Supermorepheus. This development gives a significant milestone to the house of The Money Club which aims to expand the base and enhance its technological skills to offer better services to their clients.
PC: FinTech Global
Started by Manuraj Jain in the year 2018, The Money Club plans to bring financial inclusion in lower income populace of India especially catering the 400 million low-end middle-class people, whose access to these kinds of regular financial products remain challenged. So, this application facilitates fully online interface that introduces access on demand liquidities without asking physical papers while borrowing, in effect reducing loaning complexity besides including those in financial folds.
The new capital will be used to build solutions that will promote financial inclusion, expand the technological capacity of the company, and empower the underserved. The mission of the Money Club is to rotate savings digitally so that users can access funds when needed, thus improving their financial resilience.
The Money Club operates entirely on UPI rails, collecting valuable behavioral data from its users. That data is used to create a dynamic, real-time underwriting model that generates an accurate credit profile using over 30 unique attributes for each transaction. This innovative approach will allow the platform to give 20 times more data than traditional credit models, further enhancing the digital footprint of nano-entrepreneurs and bringing them into the formal financial ecosystem.
To date, over 700,000 users primarily new to credit have onboarded through The Money Club. It has enabled approximately ₹350 crore in rotation of savings and created more than 4.3 million digital footprints across transactions. The Money Club presents a stunning 98% in user retention, which explains the good customer satisfaction and stickiness in the business model.
The innovative model of the Money Club makes it a competitive player in the financial technology space, potentially competing with other companies like myPaisaa, Subspace, and Shriram Chits. As the demand for accessible financial solutions continues to grow, The Money Club’s focus on providing liquidity to underserved populations is both timely and critical.
With the new funding, The Money Club is all set to improve its services and reach out to millions of Indians with financial tools that were previously out of their reach. The company’s commitment to leveraging technology for financial inclusion aligns with the broader goal of improving the economic landscape for low-income communities in India.
In conclusion, The Money Club’s recent success at fundraising not only validates the model but also underlines potential to transform the financial lives of millions of the currently underserved. With ongoing growth and innovation, this platform is likely to assume a pivotal role in the enhancement of financial inclusion and greater equity in the financial ecosystem in India.
