India, 30th May 2024: Vegapay, today announced the successful closure of a $5.5Mn seed round, led by Elevation Capital with continued participation from Eximius Ventures. This investment will help Vegapay build towards its mission to help banks, NBFCs, and other financial institutions launch and manage product innovations seamlessly with hyper-configurable, flexible and customizable credit solutions.

Vegapay’s suite of products allows financial institutions to provide frictionless, customisable products that meet their customer needs and elevate their suite of offerings. Traditional credit systems employed by financial institutions hinder their ability to innovate to meet customer needs on account of extensive third-party integrations, lengthy development cycles, and collaboration with multiple vendors. Vegapay aims to reduce this friction by offering financial institutions an intuitive platform to automate solutions such as card management systems, UPI on Credit Lines, UPI on Credit Cards, standalone modules for credit-based programs such as Origination Systems, Loan Collection Systems, and Co-lending Management Systems.

Founded by Gaurav Mittal, Himanshu Agrawal, Puneet Sharma and Abhinav Garg in 2022, Vegapay’s unique business model is designed to grow with its partners. Unlike traditional banking software models that require hefty upfront payments and long-term contracts, Vegapay offers a flexible “pay-as-you-go” approach reducing financial barriers. Flexibility, scalability, and speed are key differentiators that set Vegapay’s operations apart in the rapidly evolving banking landscape.

“Empowering financial institutions with cutting-edge technology isn’t just a vision; it’s a revolution. At Vegapay, we’re not just changing the game; we’re rewriting the rules, ensuring that innovation in financial technology isn’t a luxury for the few, but accessible to all. Together, we’re democratising access to superior financial technology, paving the path for superior banking worldwide.” – Gaurav Mittal, CEO of Vegapay.

Talking about the investment, Vaas Bhaskar, Principal, Elevation Capital, said, “Financial institutions’ demand for modern credit platforms is accelerating at an unprecedented scale – driven by customers seeking best-in-class experiences and products, numerous embedded credit partnerships, and new form factors like Credit on UPI and compliance requirements. These modern systems will form the foundation of all innovations by banks and credit providers. We see great potential in Vegpay’s solutions to fill this void. The team’s nuanced understanding of the needs of Financial Institutions further solidifies our excitement to partner with VegaPay in this journey.”

The capital infusion will be strategically utilised to enhance Vegapay’s product suite, focusing on product development and regulatory compliance updates. A significant portion of the funds will also be allocated to hiring top-tier developers, designers, and engineers to drive innovation.

The company previously raised a pre-seed round of $1.1Mn in 2023, led by Eximius Ventures and participation from DSP HMK, Capri Global, Upsparks Capital, MGA Ventures, and Climber Capital.