May 30, 2024: Vegapay, a lending tech stack and card management provider has secured $5.5 million to augment Vegapay’s product suite, with a thrust on product development and regulatory compliance updates, said the company in a statement.
A major portion of the funds will be deployed to acquire top-tier developers, designers, and engineers to drive innovation, the firm stated.
With this seed investment, Vegapay aims to enable banks, NBFCs, and other financial institutions launch and manage product innovations with hyper-configurable, flexible, and customisable credit solutions.
“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.,” said Gaurav Mittal, CEO of Vegapay.
Founded by Gaurav Mittal, Himanshu Agrawal, Puneet Sharma, and Abhinav Garg in 2022, the firm is building a lending tech stack and a card management system that enables regulated entities and fintech firms to issue and increase penetration of card and lending in India.
Vegapay aims to excel in pay-as-you-go approach
The firm offers a flexible ‘pay-as-you-go’ approach, reducing financial barriers. Flexibility, scalability, and speed are the distinctive differentiators that set the lending tech stack firm apart in the rapidly emerging banking landscape, the company 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,” said Vaas Bhaskar, Principal, Elevation Capital.
“These modern systems will form the foundation of all innovations by banks and credit providers. We see great potential in Vegapay’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,” he added.
The latest seed round was led by Elevation Capital, with participation from Eximius Ventures. Earlier, in 2023, the startup had secured $1.1 million in pre-seed funding led by Eximius.
