Peak XV-Backed Bright Money Raises $62 Mn Funding To Help Customers Get Out Of Debt

Consumer fintech startup Bright Money has secured $62 Mn funding in a mix of equity and debt.

The startup has raised $50 Mn in debt from Encina Lender Finance and $12 Mn in equity led by Alpha Wave, Hummingbird, and Peak XV.

Encina Lender Finance provides lending solutions to consumer and commercial speciality finance companies across the U.S. and Canada.

Founded in 2019 by a team from McKinsey’s Banking Practice and former InMobi data scientists — Petko Plachkov, Avi Patchava, Varun Modi, Avinash Ramakath, Jay Merwade, Amit Bendale, the fintech startup aims to reshape how global retail banks operate driven by big data and AI.

“Bright Money’s mission is to empower individuals to build for “Life After Debt” by focusing on eradicating credit card debt, enhancing credit scores, and boosting savings. At Bright Money, we exist to give users a path to being debt-free with AI-driven financial planning,” Varun Modi, cofounder and CTO of Bright Money, said.

Bright Money focuses on the liabilities of a consumer: personal lending and credit cards.

The fund infusion will enable Bright Money to cater to millennials, especially in the US aggressively, the startup said.

“At Bright Money, we have seen a 6x growth in the last year and now reach hundreds of thousands of users. We believe data is a positive force that can have transformative effects if used effectively,” Avi Patchava, cofounder and co-CEO, of Bright Money, said.

Back in 2021, the Bengaluru and San Francisco-based startup Bright Money raised $31 Mn funding from Peak XV, Falcon Edge Capital and Hummingbird Ventures.

Although funding winter continues to trouble the Indian startup ecosystem, fintech remains one of the primary choices for investors. Recently, Bengaluru-based fintech startup Perfios raised $229 Mn in Series D funding round through the combination of a primary and secondary sale.

Of the 111 unicorns in India, 22 belong to the fintech sector, as the segment continues to be one of the biggest opportunities in India’s startup ecosystem. According to Inc42’s State Of The Indian Fintech Report Q2 2023, the Indian fintech opportunity is set to reach $2.1 Tn by 2030.

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