Youth-focused neobank Muvin has raised $3 million (around Rs 22.5 crore) as a part of its pre-Series A funding round led by WaterBridge Ventures, along with participation from Debt fund Alteria Capital and Krishna Bhupal, Co-Founder, Rational Pricing Technologies and board member of GVK Power & Infra.
Earlier in April 2021, the Bengaluru-headquartered neobank raised a seed funding of around $1 million.
Founded by Vineet Gupta and Mukund Rao, Muvin caters to both teens and young adults through its prepaid card and mobile app. Currently, it has over 20,000 users on its platform.
“We are looking forward to growing our team and enhancing our tech product to address our customers’ needs and will be ramping up our marketing initiatives to onboard users pan-India over the next 18 months,” Mukund Rao, Co-Founder of Muvin, said.
He added, “We will be introducing several features on our card and mobile app over the next two-three quarters that will substantially upgrade our users’ experience. We are very bullish about our growth and with this funding."
The neo banking space is getting popular in India with many new-age technology startups making forays into the space. The pandemic-led lockdowns last year had further given a fillip to the sector and consequently, these new-age firms raised money aggressively. Among other private equity investors, Tiger Global Management has been actively investing in space.
In late December, neobanking platform Jupiter raised $86 million as a part of its Series C funding round co-led by Tiger Global Management, Sequoia Capital India at a valuation of $711 million.
In October, Zolve Innovations, which operates a neobank that aims to ease access to financial services for users travelling from India to the US or vice versa, raised $40 million from DST Global, Tiger Global Management, Alkeon Capital, Accel and Lightspeed Ventures. Another neobank Open which primarily focused on small-medium enterprises (SME), in September, raised $62 million as a part of its Series C funding round from Temasek, Google, Tiger Global Management and 3one4 Capital.
In the same month, SME-focused lending neobank FloBiz had raised $31 million as a part of its Series B funding round from Sequoia Capital India, Think Investments, Beenext and Elevation Capital.