Prudent Investment Managers led a $2.5 million Series A funding round for The Money Club, an on-demand liquidity platform. HNIs from Singapore and Dubai, 1Crowd AIF, and its current investors, Venture Catalysts, LetsVenture, Z21 Ventures, and Supermorepheus, also participated in the round.
Prior to this, the business had raised $2.54 million from its current investors.
According to a press release from The Money Club, the new funding will be used to create financial inclusion solutions, advance technology, and give underprivileged groups financial empowerment.
The Money Club, a fully digital platform that Manuraj Jain launched in 2018, gives its new-to-credit users on-demand liquidity without requiring any paper documentation. The platform is made to address the unmet financial needs of low-income groups, especially the 400 million Indians in the lower middle class who have a difficult time obtaining traditional financial products.
The Noida-based business claims that it allows people all over the nation to digitally rotate their savings and access money whenever they need it. A dynamic, real-time underwriting model that generates precise credit profiles using over 30 distinct attributes per transaction is made possible by its complete reliance on UPI rails and the valuable behavioral data it gathers.
By bringing nano-entrepreneurs under the formal financial ecosystem’s purview, this method greatly expands their digital footprint, which was previously nonexistent, and offers 20 times more data than traditional credit models.
Over 7 lakh users, the majority of whom are new to credit, have reportedly been successfully added to the Money Club’s user base. They have reportedly rotated about Rs 350 crore of their savings to date and created a digital footprint of over 4.3 million transactions. The platform’s user retention rate is 98%.
It might have direct or indirect competition from other businesses in this sector, including Shriram Chits, Subspace, and myPaisaa.
