Bengaluru-based fintech startup Stable Money has raised USD 20 million (~INR INR 170 crore) in a new round of funding. The round is led by The Fundamentum Partnership Fund, a growth-stage venture capital fund co-founded by Nandan Nilekani, with participation from existing investors Matrix Partners, RTP Global, Lightspeed India and Naman Finance.
Funding Breakdown
According to RoC filings and market trackers, the Series B round consists of 10 equity shares and 51,914 Series B compulsorily convertible preference shares (CCPS) at an issue price of INR 33,345 per share. The break-up is:
- The Fundamentum Partnership Fund: INR 86.5 crore (~USD 10 million)
- Matrix Partners: INR 45.42 crore
- RTP Global: INR 33.78 crore
- Lightspeed India: INR 4.32 crore
- Naman Finance: INR 3 crore
This round takes the company’s post-money valuation to USD 130 million (~INR 1,109 crore), a 2.3X increase from its last round in July 2024 when it raised USD 15 million (~INR 128 crore).
Shareholding Post-Round
After this transaction, the shareholding of Stable Money is:
- Matrix Partners: 18.97%
- Lightspeed India: 15.20%
- RTP Global: 13.45%
- Fundamentum: 7.94%
- Naman Finance: 0.28%
Use of Funds and Strategy
The fresh capital will be used for capex, marketing and general corporate purposes. This fund allocation indicates the company’s plans to scale up fast and build technology infrastructure.
Company Background and Position
Founded in 2022 by Saurabh Jain and Harish Reddy, Stable Money aims to democratize fixed-return investment products for retail investors. Its platform aggregates options like fixed deposits, bonds and debt mutual funds from various banks and financial institutions and offers a seamless investment experience. The company is a safer alternative to equity-based platforms like Groww, Zerodha Coin and Upstox. The platform stands out by focusing on low-risk asset classes in a market where capital preservation is becoming increasingly important amidst macroeconomic uncertainty.
Financials
Despite being popular, Stable Money is still in early days financially. For the year ended March 2024, the company reported INR 35.3 lakh in operating income and INR 12.29 crore in net loss, making it a pre-revenue entity as it scales and builds user traction.
Conclusion
Stable Money’s funding is a vote of confidence in their model of providing secure, fixed income products to India’s massive retail investor base. With a clear path to growth and a fresh war chest, the company is ready to expand its digital offerings, deepen its customer base and ride the fintech wave. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.