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Mumbai-based early-stage venture capital fund house Unicorn India Ventures has invested $650,000 in Hyderabad-based fintech, blockchain start-up ChitMonks in a pre-Series A round.
ChitMonks has developed a blockchain-based product that helps State government regulators administer chit fund operations on a private-permissioned blockchain network. The company is extending its services to chit fund companies of any size and anywhere in India, by digitally enabling them with process efficiency (payment collections, online auctions, eKYC, esign, etc), better underwriting (bank statement analysis, credit profiling, credit liabilities) and making their offerings more inclusive.
Digitising chit funds
“Even before the current Covid-19 scenario, we saw the potential in ChitMonks to revolutionise the current antiquated system of the chit fund industry by bringing the whole ecosystem online. It is in line with our philosophy of investing in businesses which can digitise current processes and make them more transparent and accessible,” said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures.
According to ChitMonks’ research, there are about 30,000 registered chit fund companies in India with approximately ₹1.5-lakh crore of AUM (Assets Under Management).
Pavan Adipuram, co-founder and CEO, ChitMonks, said: “Chit fund, as an asset class, is very close to millions of people pan-India. Our passion is to create, empower and enable the next-generation chit fund companies that are looking to grow in the chit fund business. At a time where digitisation is essential, we are building an inclusive ecosystem for the chit fund companies to think beyond digitisation.”
He said the funds raised will be used for product development, market expansion, strategic hiring and further investment in scaling up the current business.
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