Money & Banking

MyMoneyMantra raises $15 million

Rajesh Kurup Mumbai | Updated on July 16, 2019 Published on July 17, 2019

Gets PE funding from Dutch investment firm IFSD BV in lieu of 30% stake

MyMoneyMantra, an omni-channel financial services distributor, has raised $15 million (₹104 crore) of private equity funding from Dutch investment firm IFSD BV, in lieu of 30 per cent stake.

The funding values the company at about ₹345 crore.

This is the first-ever external fund-raising by New Delhi-based MyMoneyMantra, and the money will be used for corporate purposes and acquisitions. IFSD BV, based out of the Netherlands, is being advised by private equity and advisory firm Vaalon Capital.

Data analytics

“We will use the funding to strengthen our data analytics team, migrate our data to Amazon Web Services, develop our website and strengthen our digital marketing team. It would also be used to further our pan-India reach and deepen existing financial partner relationships with banks, NBFCs and insurance companies,” MyMoneyMantra’s Founder and Managing Director Raj Khosla told BusinessLine.

Eyeing buys

“We will also do more of acquisitions,” he said. The company intends to acquire two firms in the next 12 months. It is prepared to spend ₹25-₹30 crore, while the deal size would vary depending on targets.

“About 30 per cent of our growth will come through the inorganic route, while the bulk of the growth will come from growing our own technological platform and growing our data analytics platform,” Khosla said.

The company, started about 30 years ago, has been profitable since then and had earlier acquired Bengaluru-based Ascon and Hyderabad-based Shaster.

These firms were later integrated with MyMoneyMantra. The firm recorded a turnover of ₹135 crore for FY19.

MyMoneyMantra distributes home loans, loan against property to SMEs, credit cards, unsecured loans and health and life insurance on behalf of about 100 banks, NBFCs and life insurance companies. It has presence across 52 cities and employs about 2,500 personnel.

“This investment is an endorsement of the ‘phygital’ (physical and digital presence) strategy we have been following,” Khosla added.

MyMoneyMantra is also expecting its employee count to rise to 3,000 in the next 2-3 years.

Published on July 17, 2019
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