Hypto raises $3-mn seed fund

NARAYANAN V Chennai | Updated on October 27, 2021

Chennai-based tech infra platform helps banks and businesses automate payments

Hypto, a Chennai-based tech infrastructure platform focused on deconstructing financial products for developers, has raised $3 million in seed funding led by Stellaris Venture Partners.

3one4 Capital, Core 91 and angel investors including Amrish Rau (CEO, Pine Labs) and Jitendra Gupta (CEO, Jupiter) were the other investors.

Founded in 2018 by Abhishek Rajagopal, Aravind Sriraman and Tholkappiyan Velavan, Hypto provides back-end tech infrastructure as a service for developers building solutions for financial use cases.

The company launched a payments stack in March 2020 and is currently working with more than 10 banks and over 2,000 businesses to automate their payment and reconciliation processes. It says it has processed over 55 million transactions, worth over $15 billion, in 18 months.

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“The funding is a huge milestone for us and will help us continue building world-class products from India. It is important to have partners who understand your product and the future potential early on,” Rajagopal told BusinessLine.

Fintechs in a happy space

He said Hypto is primarily an infrastructure company. “Today, banks have multiple products but these may not be consumable by a tech company. We act as a conduit between the banks and businesses so that the products can be consumable,” Rajagopal said.

Hypto will use the funding to expand its technology team and build web services for fresh financial use cases for technology businesses.

“The use case could be a wallet ecosystem. For instance, companies like Dream 11, Zerodha, Swiggy, Cred have an internal wallet system where they store stocks, reward points, rupee etc, but the underlying tech for each is a wallet,” Rajagopal said, adding, “we could build a commoditised wallet that businesses can use as their internal ecosystem to store anything.”

“We strongly resonated with Hypto’s vision to build the operating system for fintech — by providing APIs [application programming interface] to access all banking products, they allow any business to build financial products customised to their needs. The Hypto founders combine deep financial services knowledge with the experience of building global SaaS [software as a service] products, and we look forward to partnering them in this journey,” Ritesh Banglani, Partner, Stellaris Venture Partners, said in a press release.

“The commoditised products we build will primarily be for India but the core primitives could be used by companies anywhere in the world. So, by early next year, we are going global so customers worldwide can use our primitive infrastructure to build as many financial applications as the business needs,” Rajagopal said.

Published on October 27, 2021

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