Hyderabad-based blockchain startup, ChitMonks, has bagged $650000 in a pre-Series A round led by Mumbai-based early-stage venture capital firm, Unicorn India Ventures. The startup will use this recently raised funds for market expansion, product development, strategic hiring, and further scaling-up the current business.
Earlier this funding, Unicorn India Ventures has invested INR 400 crore Fund II after SaScan.
The blockchain startup collaboratively works with various chit fund companies and regulators to offers a private platform to the enterprise for chit fund firms for making their services more efficient, streamlined, and incorporated for their customers.
ChitMonks has created a blockchain-based product to empowers state government regulators to administer chit fund operations around the state on a private permission blockchain network. It is widening its services to chit fund firms of all sizes across India, by digitally enabling them with better underwriting (credit profiling, bank statement analysis, credit liabilities), process efficiency (online auctions, payment collections, eKYC, eSign) and more inclusive offerings.
On this occasion, Unicorn India Ventures’ Managing Partner Bhaskar Majumdar said that earlier this pandemic, we had seen the startup’s potential to revolutionize the current antiquated system of the chit fund industry by bringing the whole ecosystem online. ChitMonks is in-line with Unicorn’s philosophy of investing in businesses that could digitize current processes by making them more accessible and transparent.
Long back when banking was not that extended as it is now, chit funds as an asset class had served millions of subscribers. However, as a sector, chit funds and its based companies have not got any goodwill from governments, stakeholders, or new generation customers. As per the ChitMonks’ research, there are around 30,000 registered chit fund companies in India, which operates registered chit fund business with around INR 150000 crore assets under management.
ChitMonks co-founder Pavan Adipuram said that their team has an influential tech and finance background, and hence fintech as a sector was their natural choice. Based on their research over the fintech sector, they believed that foundational technologies such as blockchain for fintech products were reinventing the transparency and trust at a new dimension. They firmly believe that this kind of technology could reinvent chit funds, and they could re-emerge as a bonafide sector where retail investors could borrow and invest money in a trustless manner.
Your rate 3 stars is recorded
StartupWorld is the destination to learn about new and upcoming startups making waves on the web. Being an entrepreneur is as much hard work as it is fun. No one knows it better than you do. Share your story, send it in and let us showcase it to the world.