The Money Club, an on-demand liquidity platform, has raised $2.5 million in their Series A funding round led by Prudent Investment Managers. The round also saw participation from new investors which included HNIs from Singapore and Dubai, along with 1Crowd AIF.
Existing investors that continued to back the company included Venture Catalysts, LetsVenture, Z21 Ventures and Supermorepheus. Radix Capital Advisors acted as exclusive investment bankers for this transaction.
The funds raised will be used to further develop its financial inclusion solution, expand technological capabilities, and provide financial empowerment to underserved populations.
“The funding will enable us to further develop our innovative financial inclusion solutions, expand our technological capabilities, and continue our mission of providing financial empowerment to underserved populations. This round is a testament to investors’ confidence in the wide-ranging impact and massive potential of our disruptive business model, not only in India but globally,” said Manuraj Jain, Founder & CEO of The Money Club.
“It has been an interesting journey with Money Club who we first evaluated three years back. During our continuous interaction we have seen the money club model evolve over a period of time. We are convinced now that with the first mover advantage and the disruption that Money Club is causing, a large and profitable business will be built. Our call is as much on the business model as it is on Manuraj, who has been navigating the business through its up and downs in the last few years, with a clear sense of direction and objectivity,” Prashasta Seth, CEO, Prudent Investment Managers.
Launched in 2018, by IITian Manuraj Jain, The Money Club provides a fully digital platform that offers its new-to-credit users on-demand liquidity, sitting at home, without any physical paperwork!
The platform enables users from across the country to rotate their savings digitally and get access to funds, on demand, in times of need. It runs entirely on UPI rails, and collects valuable behavioral data, enabling a dynamic, real-time underwriting model that creates accurate credit profiles using 30+ unique attributes per transaction.
This approach provides 20 times more data than traditional credit models, significantly enhancing the non-existent, digital footprint of nano-entrepreneurs to bring them under the ambit of the formal financial ecosystem.
The company claims to have acquired over 7 lakh users, mostly new to credit, who have rotated approximately ₹350 crore of their savings to date and generated a digital footprint of over 4.3 million+ transactions. This achievement is complemented by an impressively low default rate of below 1% and a 98% user retention rate.
