The Series A funding round was led by SphitiCap, an early-stage, sector-agnostic fund
PayVEDA’s offerings include microloans of INR 5-40K, bill payment, Aadhaar-enabled payment, auto insurance and accident insurance, among others
The fintech startup claims to have a network of 80K+ merchants and aims to grow it to 50 Lakh in the next four years
Fintech startup PayVEDA has raised $11.5 Mn in its Series A funding round from early-stage sector agnostic fund SphitiCap.
Founded in 2019 by Prateek Vohra, PayVEDA offers agent-based payment solutions to consumers and businesses.
PayVEDA’s offerings include microloans ranging from INR 5K to INR 40K besides bill payment, Aadhaar enabled payment system, health, life, motor and accidental insurance among others.
“Adding a fintech giant like PayVeda that has been at the forefront of solving challenges on-ground to our portfolio is thrilling. We are confident that our investment in the company will give impetus to their expansion and acquisition strategy, while strengthening their IPO roadmap,” said Pallav Kumar Singh, managing partner at SphitiCap.
SphitiCap informed that it is going to back 10 more startups in the fourth quarter of 2022.
PayVEDA claims to have a network of 80K+ merchants and further aims to expand it to 50 Lakh merchants in the next four years.
“PayVEDA is committed changing lives and empowering people residing in the country’s most remote corners. Our aim is to take banking and non-banking fintech services to rural India and create employment for rural youth in locations that are often overlooked,” Vohra said.
PayVEDA plans to use the funds for business expansion, acquire more companies and reinforce its IPO plans.
The startup said that it has recorded monthly transactions worth INR 5 Cr and gross transaction volume up to INR 7000 Cr. It also aims to increase its gross transaction volume up to INR 30 Lakh Cr in the next four years.
According to an Inc42 report, the Indian fintech sector is set to become a $1.3 Tn market by 2025. The industry is expected to grow at a CAGR of 31% during the forecasted period of 2021-25.
Amid this, the lending segment is a sub-sector that will capture a $616 Bn market share from the $1.3 Tn fintech market. Aye finance, Jodo and ARTH are some of the fintech startups operating in the space.