MyMoneyMantra, Delhi-based fintech firm has raised about Rs. 104 crores ($15 million) from European investment company IFSD BV and a PE firm which is newly formed, Vaalon Capital in what seems to be the first funding for the 30-year-old company.
The exact stake amount could not be ascertained but sources close to the development pegged it at 25-30 per cent which eventually puts the valuation of the organisation at over Rs. 346 crores.
Moving on with this, the company has plans to use the raised capital in accelerating growth through technological adoption. Apart from this, MyMoneyMantra also plans to allocate a part of funding for acquisitions as it increases its pace towards its operations pan India.
Khosla is known to have founded the company with a corpus of Rs 1,000 in 1989 after recognizing the need for professional financial services amongst the increasing number of middle-class, businesses, self-employed people. In the initial years till 2008, MyMoneyMantraran as an exclusive distributor for multiple products for Citibank. Its clinched tie-ups with NBFCs and multiple banks after 2008.
By the end of the financial year, 2019, MyMoneyMantra clocked revenues of nearly Rs 135 crore.The company that considers Andromeda and BankBazaar as its key competitors so far, claims to have served 2.5 million customers across 50 cities around the country. Today is the time when it has tie-ups with over 90 financial institutions such as insurance companies,banks and NBFCs.
According to statement made by Khosla, currently certain hallenges are being faced by the financial service market pertaining to market liquidity and rapid change in technology in terms of distribution and consumption by the consumer. The opportunity lies majorly in using a business model that can combine physical touchpoints with digital.
The fintech sector is increasingly displaying investor interest. Presently, India’s market is dominated by US-based accelerators and venture capital firms such as Sequoia Capital, Kalaari Capital, Accel Partners, Saif Partners, Omidyar Network and Tiger Global, among others.
For IFSD BV, a Rotterdam based Dutch investment company, the current transaction marks its maiden investment in India. On the other hand, Vaalonis an independent PE and advisory firm which was founded in 2016 that is aimed at making long-term investments in India. Its ticket size of its investment ranges between $15 million and $75 million.