MUMBAI: Secure Cash, an Indian platform permitting customers to guide fixed-income belongings, has raised $25 million in a pre-Sequence C funding spherical, valuing the Bengaluru-based fintech startup at $175 million, at a time when Indian fintechs are underneath strain to construct extra sustainable enterprise fashions
Peak XV Companions led the all-equity spherical with a $20 million funding, Saurabh Jain, co-founder of Secure Cash, informed Mint. Present backers Z47, RTP International, and the Fundamentum Partnership, co-founded by Infosys Ltd chairman Nandan Nilekani, additionally participated. The newest infusion brings the corporate’s whole capital raised throughout 4 rounds to $65 million.
The capital will fund enlargement into India’s tier 2 and tier 3 cities, the place the corporate sees demand from clients preferring assisted distribution for monetary merchandise. Secure Cash at present operates offline touchpoints in Kolkata, Delhi, and Pune, and plans to widen this bodily community alongside elevated advertising and marketing expenditure.
“We’re directing these funds particularly towards progress in tier 2 and tier 3 markets,” Jain mentioned. “This features a vital push in advertising and marketing and establishing a stronger offline presence to service clients preferring bodily interactions for monetary merchandise.”
The fundraise comes lower than a yr after the corporate’s Sequence B spherical, the place it raised $20 million at a $130 million valuation. That spherical noticed participation from Z47, RTP International, Lightspeed and Aditya Birla Ventures, with funds earmarked for increasing Secure Cash’s suite of wealth merchandise and rushing up buyer acquisition.
The quantity from the earlier fundraise has not been totally deployed but, Jain informed Mint. The funds from the latest elevate might be deployed together with the remaining money from the Sequence B spherical.
On the finish of the earlier funding spherical, co-founders Jain and Harish Reddy held a 36.7% stake in Secure Cash, in accordance with information from intelligence agency Tracxn. When requested, Jain did not specify how a lot his and Reddy’s stake was diluted after the pre-Sequence C spherical.
Secure Cash aggregates fixed-return merchandise equivalent to financial institution deposits and debt devices, positioning itself round predictable returns quite than market-linked volatility. Jain mentioned the corporate has no instant plans to diversify into equity-linked merchandise, sustaining a strict give attention to mounted revenue.
Based in 2022, the platform has constructed a consumer base of over 4 million traders and facilitated greater than ₹5,000 crore in investments.
The corporate operates in a rising section of fintech platforms targeted on fixed-income and bond merchandise, alongside friends equivalent to Wint Wealth, Jiraaf, and InCred Cash.
For FY25, Secure Cash’s income from operations stood at ₹104 crore, whereas losses totalled ₹45 crore, in accordance with Tracxn information. Ebitda loss was additionally ₹45 crore. Income rose sharply year-on-year, although losses widened, with absolute FY24 numbers not instantly accessible.
Now, the startup is evaluating new asset lessons aligned with its danger profile. Actual property funding trusts (Reits) are underneath assessment as a possible addition to the platform’s choices.
“We don’t wish to get into fairness merchandise any time quickly,” Jain mentioned. “We’re, nonetheless, actively evaluating Reits as a brand new product line, as they align with our core proposition of stability.”
The corporate will even make the most of the recent capital to rent personnel throughout know-how and enterprise capabilities. Administration indicated progress would stay natural, ruling out acquisitions or inorganic enlargement methods for the close to time period.
“An IPO is the last word aim, which we envision attaining three to 5 years down the road,” Jain mentioned.