Latest news with #StableMoney
Mint
24-06-2025
- Business
- Mint
Ride the bond-wagon: VCs and fintech startups rush to tap the latest retail investor craze
After mutual funds, individual stocks and popular fixed-income products such as fixed deposits, venture capital (VC) firms and India's wealthtech companies are clamouring to tap a new, relatively niche instrument that's been growing in popularity among investors of late – bonds. Groww, Stable Money, Grip Invest and Wint Wealth are among companies that are riding the wave, looking to cash in on bond investments. Grip Invest, a series A wealth-tech company, is in talks with Orios Venture Partners and existing investors to raise almost $8 million, two sources aware of the development told Mint. Wint Wealth is also exploring early conversations for its next round of funding with new backers, two sources said. Also read: Municipal bodies still shun public bond issues. There's a lot that's holding them back Grip Invest did not comment on the development. Ajinkya Mukund Kulkarni, co-founder and CEO at Wint Wealth, confirmed there had been interest from investors, but said the company was still exploring this and hadn't actively started pursuing its next round of funding. Two other companies eyeing the space, India Bond and Bondbazaar, have also begun funding talks with VCs, two sources told Mint. IndiaBonds declined to comment on the fundraise, while queries sent to Bondbazaar did not elicit a response at the time of publishing this story. A bond is essentially a loan agreement where an investor lends money to a borrower (like a company or government) for a set period, and in return, the borrower promises to repay the principal amount (face value) plus interest (coupon payments) at a specified future date (maturity). Essentially, it's a fixed-income security that represents debt. Bond investments are increasingly catching investors' attention thanks to a strong tech ecosystem, a regulatory push, and promises of stable returns. Retail bond investments via online bond platform provider or OBPP-licensed platforms have seen explosive growth, rising from ₹242 crore in June 2024 to ₹972 crore by April 2025 — a staggering 430% CAGR, according to NSE and BSE data compiled by Stable Money. There has been a 327% increase in monthly transactions of corporate bonds and structured debt instruments (SDIs) over the past year, said a Business Today report in February. This is due primarily to Sebi's OBPP licence, which it introduced in 2022 to regularise investments in bonds. 'We're seeing a marked shift in investor behaviour since FY24-25. Retail investors are increasingly viewing bonds not just as an alternative to FDs, but as a core part of their asset allocation strategy," said Vishal Goenka, co-founder, IndiaBonds. 'There's growing interest in state-guaranteed bonds, high-yield NCDs and even in new products like digital FDs. With a volatile equity market and a benign interest rate cycle in the country we have seen volumes on our platform double in just the past six months." Incumbents join the rush Existing wealth-tech players are also entering the new segment to cash in on the rush. Stable Money, which once focused on FDs, diversified into bonds last year. The segment, which makes up less than 10% of its assets under management (AUM), is expected to grow to as much as 50% by December 2026. The company aims to triple its current AUM of ₹3,000 crore by then, Saurabh Jain, CEO and co-founder, told Mint. 'We believe bonds are an emerging wealth product, much like how mutual funds, stocks, and F&O have scaled over time. There are very few regulated products with this kind of potential. With simplified KYC and fully digital processes, it has become much easier to offer bonds online," he said. The company raised $20 million in a round led by Fundamentum earlier this month. Groww, one of the largest online stock brokers, which entered wealth management through its recent acquisition of Fisdom, isn't far behind. The company is in the process of applying for the online bond platform provider (OBPP) license, which Sebi introduced in 2022 to regularise investments in bonds. Since then, platforms need this license to facilitate the buying and selling of listed, rated, and regulated bonds online. More than 30 companies hold this license as of June 2025, according to Sebi's website. Regulatory push made it possible Apart from the credibility boost from OBPP licences, the framework also allowed small-ticket investments in bonds (starting from ₹10,000), giving retail investors better access to the asset class, in May 2024. In November 2024, changes to the advertising code for OBPPs further eased uncertainty for potential investors. Wint Wealth's Kulkarni explained, 'Earlier, we had restrictions under the advertisement code which was tailored for equity brokers. In December 2024, updated advertisement code came that enabled describing ourselves as a platform which provides securities having fixed returns. Such a proactive regulatory step has helped get clarity while building trust and improving investor confidence." Kulkarni added that a large chunk of the company's growth came after these changes in regulations. Also read: What drives the new corporate love for the bond market However, a VC who has chosen not to invest in the segment, and who did not wish to be named, said that while these platforms may show growing AUMs, many are not profitable and their monetisation models are still evolving. 'Interest rates are already starting to come down. Bonds are yield products, so if rates drop further, the core value proposition weakens," this person added. This impact is already visible on FDs. Over the past year, the RBI has cut the repo rate twice, which has reduced FD interests, making them less attractive. On the contrary, according to a Grip analysis based on data from Prime Database and the RBI, certain type of bonds, such as 'A' rated corporate bonds, have consistently offered yields between 10-11% over the past decade, in contrast to fixed deposit rates, which closely track the repo rate. Nishit Garg, partner at RTP Global, said it was because of these stable rates that interest in certain bond categories began growing after the framework was introduced. 'It's a natural evolution. Real estate is becoming unaffordable, traditional investments are saturated, and middle India is now actively looking for stable, alternative avenues for wealth creation," said Garg, who has led RTP Global's investments in Stable Money and Dexif. Is the market big enough? Amit Nawka, partner at PwC India, said the bond market remains largely untapped, which presents significant potential for growth. 'As interest rises and more players — including fintechs — enter the space, success will hinge on building investor awareness and trust, while staying aligned with evolving regulatory requirements," he added. Peers in the industry agreed that while competition was intensifying, this was a largely positive development as the market would grow and investors would learn more about bonds, much like what happened with stocks and mutual funds. Doing their own thing Companies are approaching the bond market in different ways. Stable Money, for example, is aiming to nudge its FD customers to take slightly more risk for better returns through government bonds. "One major reason is that margin-wise, bonds are slightly better than fixed deposits. Also, retail penetration in corporate bonds is just 0.5%, while fixed deposits are already a ₹75 trillion business. Even if 2% of users shift, that's an incremental ₹1.5 trillion opportunity in bonds. It's an emerging category, and we want to be at the forefront of it," said Jain. Also read: Two NBFCs have asked bondholders to ease covenants. Here's why. Others such as Wint Wealth and Grip Invest are looking to acquire first-time users through bonds or shift mutual fund investors into a slightly safer asset class amid market uncertainty. Dexif, meanwhile, is building an infrastructure layer that allows financial advisors, wealth managers, and distribution platforms to offer bonds to customers. 'Bonds are an amazing product but awareness is very low—mostly limited to corporations or ultra-high-net-worth individuals," said RTP's Garg, an investor in the company. 'To truly democratise bonds, we need to bring independent, neutral advisors into the picture, people already trusted by the masses."
Time of India
03-06-2025
- Business
- Time of India
Stable Money raises $20 million in flat Series B round led by Fundamentum
BENGALURU: Wealth-tech startup Stable Money has raised $20 million (Rs 173 crore) in a Series B round led by Fundamentum Partnership, the early-stage fund co-founded by Nandan Nilekani. Aditya Birla Ventures also participated, along with existing investors Z47, RTP Global and Lightspeed. The round comes less than a year after the company's previous fundraise. Stable Money plans to use the capital to expand its product offerings, strengthen its network of banking and non-banking financial company (NBFC) partners, and extend its reach into smaller cities and towns. Founded in 2022, the Bengaluru-based startup operates a digital platform that facilitates fixed-return investments. It allows users to book fixed deposits without opening a savings account and offers features such as instant withdrawal, a 7-day trial fixed deposit (FD), and FD-backed credit cards. The company recently launched Stable Bonds as part of its product expansion. Stable Money said it currently has over 20 lakh users and manages more than Rs 3,000 crore in assets across FDs and bonds. India's fixed deposit market includes more than 230 million account holders and continues to grow at an annual rate of around 12%. The company had previously raised $20 million across earlier funding rounds from investors including Z47, Lightspeed, RTP Global, and Marshot, along with angel backers such as Swiggy's Sriharsha Majety and Snapdeal founders Kunal Bahl and Rohit Bansal. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
03-06-2025
- Business
- Business Standard
Bengaluru-based Stable Money secures $20 million in series B funding
Stable Money, a fixed income investment fintech, secured $20 million in a series B funding round within a year of raising $15 million in a series A round in July last year. The Bengaluru-based company secured the latest round of funding from Nandan Nilekani's Fundamentum Partnership, Aditya Birla Ventures and participation from all the existing investors such as Z47, RTP Global and Lightspeed. In total, the company has raised $45.3 million in funding, data from market intelligence platform Tracxn shows. The company plans to add eight new banks and non-banking financial companies (NBFCs) in 2025 as partners. It aims to expand marketing to Tier II and III towns, where 'demand for secure, inflation-beating returns continues to grow'. The fresh capital from the series B funding round will enable the company to innovate on its wealth product offerings, deepen its partner network and accelerate distribution, the company said. 'This funding is a strong vote of confidence in our mission to deliver predictable, inflation-beating returns to millions of households, and will help us further strengthen our user experience, expand our partner network and reach investors across every corner of India,' said Saurabh Jain and Harish Reddy, co-founders, Stable Money, in a joint statement. The company has more than two million registered users. It offers financial products such as fixed deposits in partnerships with regulated entities (REs) and bonds. ALSO READ: 'With strong belief in the capabilities of the founding team, this investment aligns with our vision to back outstanding founders building the businesses of tomorrow. Our endeavour is to open up ABG's global ecosystem and network for the growth of our portfolio companies,' said Aryaman Vikram Birla, founder, Aditya Birla Ventures.
Entrepreneur
03-06-2025
- Business
- Entrepreneur
Stable Money Raises USD 20 Mn Series B to Redefine Fixed-Income Wealthtech for Bharat
The Series B round was led by Nandan Nilekani's Fundamentum Partnership, with participation from Aditya Birla Ventures. Existing backers Z47, RTP Global, and Lightspeed also doubled down in the round. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Bengaluru-based wealthtech platform Stable Money has raised USD 20 million (INR 173 crore) in a Series B round led by Nandan Nilekani's Fundamentum Partnership, with participation from Aditya Birla Ventures. Existing backers Z47, RTP Global, and Lightspeed also doubled down in the round. The fresh capital will fuel product expansion, build out offline distribution, and scale Stable Money's fixed-income partner network, according to co-founder and CEO Saurabh Jain. "We're building trust first, then expanding the wealth journey step by step," said Jain. "These products help customers move beyond FDs at their own pace." Founded in 2022 by Saurabh Jain (former CEO of Navi Mutual Fund) and Harish Reddy, Stable Money began as a digital fixed deposit (FD) investment platform, targeting first-time wealth-tech users who prefer trust and predictability over risk. In early 2024, after securing a BSE OBPP license, the startup expanded to offer curated short-term corporate bonds, which now see 80% of uptake from FD users. The platform has rapidly scaled, now claiming over INR 3,000 crore in assets under management (AUM) and serving 20 lakh customers. Its core differentiator: short-duration bonds — from 2 to 6 months — that offer users quicker investment cycles, same-day liquidity, and lifetime-free demat accounts. Jain said the platform is now piloting debt and gold mutual funds, alongside a secured credit card backed by FDs, which already has 3,200+ customers in just one month — mostly from tier-II cities. "People in these towns have idle capital but lack access to wealth managers. We help bridge that gap," he noted. Next up: loan-against-FD products launching in the next quarter, and a broader rollout of DIY-style investment baskets combining FDs, bonds, and mutual funds. Unlike advisory-heavy platforms, these baskets will be configuration templates users can self-manage. With 10 partner banks and NBFCs live and 8 more in the pipeline, Stable Money is building a full-stack suite of safe, fixed-income products, especially for India's underbanked Bharat segment. "With Saurabh and Harish at the helm, Stable Money is on its way to becoming a full-stack safety net for how India saves," said Mayank Kachhwaha of Fundamentum.
Time of India
03-06-2025
- Business
- Time of India
Wealthtech startup Stable Money raises $20 million in round led by Nilekani's Fundamentum Partnership
Wealthtech startup Stable Money, which provides digital fixed-return investment products, has raised $20 million (Rs 173 crore) in a funding round led by Infosys cofounder Nandan Nilekani 's Fundamentum Partnership . Existing backers Z47, RTP Global and Lightspeed, along with Aditya Birla Ventures, also participated in the round. The Bengaluru-based company will use the fresh capital to expand its suite of wealth products and accelerate customer acquisition by strengthening its distribution, cofounder Saurabh Jain told ET. 'In the last four or five years, most of the investments have come into categories like mutual funds, stocks and crypto, and they have seen massive growth. Everybody thought that was the opportunity for India,' Jain said. 'But there is a larger segment, which is currently under-tapped. That's when we started with fixed deposits ( FDs ), and I think that segment has given us a lot of love and volumes, which is very surprising, even to us,' he added. Users can create FDs on the platform starting at Rs 1,000, Jain said. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Jain previously served as CEO of Navi Mutual Fund and held leadership roles at Swiggy . His cofounder, Harish Reddy, was formerly with the broking firm Estee. The company plans to onboard at least eight new banks and non-banking finance companies (NBFCs) in 2025. It currently has partnerships with around eight banks and two NBFCs. It also aims to broaden its marketing efforts to target underserved investors in tier-II and tier-III cities. As per its mobile application, banks currently integrated on the platform include IndusInd Bank, South Indian Bank, Slice Small Finance Bank, Ujjivan Small Finance Bank, Unity Small Finance Bank, and Suryoday Small Finance Bank. Stable Money had earlier raised $20 million across multiple rounds from investors, including Z47, Lightspeed, RTP Global, and Marshot, as well as angel investors such as Swiggy cofounder Sriharsha Majety and Titan Capital's Kunal Bahl and Rohit Bansal. Since its launch in 2022, Stable Money has onboarded more than 150,000 users, who have invested in FDs and bonds, taking its total assets under management (AUM) to over Rs 3,000 crore. The company noted that FDs remain India's most popular financial product, with over 230 million Indians holding them. The category continues to grow at the rate of 12% annually. In addition to FDs, Stable Money also offers investment products such as recurring deposits (RDs), secured credit cards, and bonds on its platform. While platforms such as Groww and Zerodha offer FDs, sovereign gold bonds (SGBs), and other fixed-income products as part of broader investment portfolios, several fintech players have also recently launched FD offerings. For instance, Flipkart-backed launched its FD product in November 2024, while payments firm MobiKwik rolled out instant FDs on its app last year. 'Stable Money is reimagining savings by building a highly trusted, digital-first fixed-income investment platform. They've blitzscaled from zero to over Rs 3,000 crore in AUM and have demonstrated 40% growth over the last three months. The team has democratised access to fixed-income products and built incredible customer love along the way,' said Mayank Kachhwaha, principal at Fundamentum. Vikram Vaidyanathan, managing director at Z47, added: 'We are seeing a generational shift in how Indians approach wealth, with a cohort of investors prioritising long-term compounding of savings over short-term gains. Stable Money has built deep trust in fixed-income products through a combination of user education, access, and a superlative consumer experience.'
