Ex-Blinkit Exec’s Startup Dexif Bags $4 Mn To Streamline Trading

SUMMARY

Dexif will use the capital to fortify its tech stack, expand business operations, strengthen talent pool, and shore up offerings

Cofounder and CEO Deepank Bhandari told Inc42 that Dexif is in active discussions with investors and plans to raise more capital shortly

Founded in 2022, Dexif operates a technology platform that allows both retail and institutional investors to trade in fixed-income securities

Former Blinkit senior executive Deepank Bhandari-led fintech startup Dexif has raised $4 Mn in its seed funding round from existing backer RTP Global.

The startup will use the capital to fortify its tech stack, expand business operations and strengthen its talent pool. The fresh proceeds will also be utilised to shore up its offerings and accelerate user acquisition.

Dexif was founded in 2022 by IIT-Delhi alumni Bhandari and Tushar Sharma, and operated in stealth mode till April 2023. The duo then roped in ex-Northern Arc Capital’s associate vice president Pallavi Bajaj as the startup’s third cofounder in October 2023.

Dexif operates a technology platform that allows both retail and institutional investors to trade in fixed-income securities of companies. On the other hand, it also enables companies to raise capital via non-convertible debentures (NCDs), term loans and other asset classes from investors on the platform.

Commenting on the fundraise, Dexif cofounder and CEO Bhandari told Inc42, “The fundraise will allow us to fortify our two primary vectors. One is to build a scalable tech as the volumes in India’s bond market, worth around $2.2 Tn, is huge. Besides, we will continue our best to woo the best talent as we move forward.”

He also said that the startup is looking to raise more funds going forward and is in active discussions with investors to raise more capital shortly.

“This seed funding is a reinforcement of our dedication to unlock the full potential of India’s fixed-income markets. It will fuel our pursuit to innovate further and scale our offerings, ensuring that the power of fixed-income investments is within easy reach of every investor,” added Bhandari.

Meanwhile, Nishit Garg, partner at RTP Global’s Asia arm, said, “We are delighted to have partnered with Dexif from the outset. The founders have a clear vision to digitise and democratise the fixed-income market, and their rigorous execution has continued to amaze us”.

Dexif earns revenue from charging companies looking to raise capital from the public market via NCDs. It also charges investors looking to offload their shares in the market by connecting them with buyers.

On the regulatory front, the startup is currently awaiting two licences from markets regulator Securities and Exchange Board of India. It has applied for the Online Bond Platform Providers (OBPP) licence and expects to receive it by the end of July.

For the uninitiated, the OBPP licence is mandatory for entities operating online platforms that facilitate bond trading.

In addition, Dexif has also applied to the markets regulator for a debt broker licence and expects to to secure this licence by the end of this month.

Debt broker licence is essential for an entity to act as an online bond platform provider without a certificate of registration as a stockbroker under the SEBI (Stock Brokers) Regulations.

On the operational front, the startup claims to be clocking a gross transaction volume (GTV) of nearly INR 300 Cr per month. Dexif competes with fintech startups such as Jiraaf and Tap Invest.

The development comes at a time when fixed-income securities are seeing rapid adoption. As per a report, India’s bond market, which is worth around $2.2 Tn currently, has significant growth potential compared to other major economies.