Posted by Mumbai: Blockchain startup ChitMonks raised $650,000 from Mumbai-based early-stage venture capital fund house Unicorn India Ventures (UIV).
For blockchain startup ChitMonks this is a pre Series A round fund raising from UIV. The funds raised will be used for product development, market expansion, strategic hiring and further investment in scaling up the current business of the Hyderabad based blockchain startup.
Startup ChitMonks has built a blockchain-based product that enables the state government regulators to administer chit fund operations across the state on a private permissioned blockchain network.
The blockchain startup is extending its services digitally to chit fund companies of all sizes across India. The services will enable process efficiency (payment collections, online auctions, eKYC, eSign, etc.), better underwriting (bank statement analysis, credit profiling, credit liabilities) and making chit fund companies offerings more inclusive.
“Even before the current COVID-19 scenario, we saw the potential in ChitMonks to revolutionize the current antiquated system of the chit fund industry by bringing the whole ecosystem online,” said Bhaskar Majumdar, Managing Partner – UIV.
“It is in-line with our philosophy of investing in businesses that can digitize current processes and make them more transparent and accessible,” added Majumdar.
Chit fund as an asset class has been serving millions of subscribers since ages long before banking expanded to its current state. But as a sector, chit funds and their companies don’t enjoy goodwill from governments, new generation customers and other stakeholders.
According to ChitMonks’ research there are about 30,000 registered chit fund companies in India, which are operating as registered Chit fund business with approximately Rs1,50,000 crore AUM (Asset Under Management).
“Based on our research in the fintech space, we believe that foundational technologies like Blockchain for fintech products were redefining the trust and transparency at a new dimension,” said Pavan Adipuram, Co-founder and CEO – ChitMonks.
Blockchain technologies, according to Adipuramn can redefine chit funds and they can re-emerge as a bonafide sector where retail investors can invest and borrow money in a trustless manner.
“Getting backing from Unicorn India Ventures lends credibility to our vision proves that we are not the only one who thinks some old economy sectors need a new age shake-up and a pinch of technology to usher them in the digital transformation world and beyond,” added Adipuram.
(Image credit – ChitMonks)