Gurugram-based Vegapay, has raised $5.5 million in seed funding round, led by Elevation Capital with continued participation from Eximius Ventures. The capital infusion, will be 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 developers, designers, and engineers to drive innovation.

Founded in 2022 by Gaurav Mittal, Himanshu Agrawal, Puneet Sharma, and Abhinav Garg, Vegapay offers a flexible “pay-as-you-go” approach, that is unlike traditional banking software models, that require hefty upfront payments and long-term contracts, stated the company.

Gaurav Mittal, CEO of Vegapay, said, “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.”

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

Vegapay aims to provide an intuitive platform that automates solutions like card management systems, UPI on credit lines and cards, and standalone modules for credit-based programs such as origination systems, loan collection systems, and co-lending management systems to reduce friction caused by third-party integrations, lengthy development cycles, and multiple vendor collaborations.

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 Vegapay’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,” he added.

(Inputs by bl intern Vidushi Nautiyal)