On 30 May, Vegapay closed USD 5.5 million seed round, led by Elevation Capital with continued participation from Eximius Ventures. The startup said that the investment will help Vegapay build towards its mission to help banks, NBFCs and other financial institutions launch and manage product innovations seamlessly with hyper-configurable, flexible and customisable credit solutions.
Vegapay’s suite of products allows financial institutions to provide frictionless, customisable products that meet their customer needs and elevate their suite of offerings. Traditional credit systems employed by financial institutions hinder their ability to innovate to meet customer needs on account of extensive third-party integrations, lengthy development cycles and collaboration with multiple vendors.
The company aims to reduce this friction by offering financial institutions an intuitive platform to automate solutions such as card management systems, UPI on Credit Lines, UPI on Credit Cards, standalone modules for credit-based programmes such as Origination Systems, Loan Collection Systems and Co-lending Management Systems.
Founded by Gaurav Mittal, Himanshu Agrawal, Puneet Sharma and Abhinav Garg in 2022, Vegapay’s business model is designed to grow with its partners. Unlike traditional banking software models that require hefty upfront payments and long-term contracts.
“Empowering financial institutions with cutting-edge technology isn't just a vision; it's a revolution. At Vegapay, we're not just changing the game; we're rewriting the rules, ensuring that innovation in financial technology isn't a luxury for the few, but accessible to all. Together, we are democratising access to superior financial technology, paving the path for superior banking worldwide," said Vegapay CEO Gaurav Mittal.
Elevation Capital Principal Vaas Bhaskar said, “Financial institutions' demand for modern credit platforms is accelerating at an unprecedented scale - driven by customers seeking best-in-class experiences and products, numerous embedded credit partnerships, and new form factors like Credit on UPI and compliance requirements. These modern systems will form the foundation of all innovations by banks and credit providers. We see great potential in Vegpay's solutions to fill this void. The team’s nuanced understanding of the needs of Financial Institutions further solidifies our excitement to partner with VegaPay in this journey.”
The company previously raised a pre-seed round of USD 1.1 million in 2023, led by Eximius Ventures and participation from DSP HMK, Capri Global, Upsparks Capital, MGA Ventures and Climber Capital.
