Vegapay, a digital lending and card management platform, has successfully secured $1.1m in a pre-seed funding round.

This round saw participation from a consortium of investors, including Eximius Ventures, DSP HMK, Capri Global, Upsparks Capital, MGA Ventures, Climber Capital, and individuals such as Arun Venkatachalam from Murugappa Group and Pratekk Agarwaal, a General Partner at GrowthCap Ventures.

Specialising in lending technology, Vegapay has engineered a system allowing both regulated entities and fintechs to further their issuance of cards and enhance lending penetration across India. The platform’s chief aim is to establish a micro-service-driven card and lending issuance stack. This innovation will empower issuers to effortlessly integrate and roll out lending products tailored to the distinct needs of various consumer segments.

With these new funds, Vegapay has set its sights on refining their technology to simplify frontline adoption for both institutions and non-institutions. This technological evolution is geared towards drastically reducing the time required for banks and fintech firms to launch new financial offerings.

Vegapay CEO Gaurav Mittal highlighted the company’s aspirations, saying, “The banks and the fintech players take months to launch new financial products like credit cards and lending offerings. However, we can help them reduce the time taken to bring products to the market by 90%. This would enable our partners to launch their products in just one week. Our mission is to assist our partners in achieving the $1.5 trillion AUM by providing customised digital lending solutions at an unprecedented speed.”

Complementing their lending solutions, Vegapay aims to develop an omni-channel lending solution to offer a broad range of products, including co-lending, secured credit, and unsecured credit. Elaborating on the market dynamics, Pearl Agarwal, founder and managing director of Eximius Ventures, said, “As per an RBI report, 65% of the credit card penetration is present in tier I cities. However, the penetration in Tier II and III cities has been significantly lower. To service this growing audience, Vegapay has devised an ingenious plan.”

Founded in October 2022, Vegapay is the brainchild of seasoned fintech professionals and banking stalwarts such as Gaurav Mittal (Ex-Zeta), Himanshu Agrawal (Ex-Amazon), Puneet Sharma (Ex- BharatPe), and Abhinav Garg (Ex-Podeum).