Fintech company Vegapay, which focuses on business-to-business (B2B) transactions, has raised $5.5 million in an equity investment round headed by Elevation Capital and including participation from current investor Eximius Ventures.
The recently raised funds will be utilised to improve Vegapay’s product line, emphasizing product development and regulatory compliance.
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Vegapay intends to increase its global presence by focusing on areas like Southeast Asia and the Middle East. By December of the following year, the company hopes to reach an annual recurring revenue (ARR) of $2 million and turn a profit.
Vaas Bhaskar, principal, Elevation Capital, said: “Financial institutions’ demand for modern credit platforms is accelerating at an unprecedented scale… These modern systems will form the foundation of all innovations by banks and credit providers. We see great potential in Vegpay’s solutions to fill this void,”
Vegapay allows fintechs and regulated businesses to issue and expand the market share of cards and other lending products. Vegapay is partnering with a large public sector bank to offer a credit card next month, and the company presently works with over six banks.
Gaurav Mittal, co-founder and CEO, of Vegapay, said: “In the credit card space, there are legacy companies, but most of the banks are not liking it for obvious reasons, and therefore new-age players like us are solving the core pain for a bank to offer credit cards or any credit products”.
About Vegapay
Founded in 2022 by Gaurav Mittal, Himanshu Agrawal, Puneet Sharma and Abhinav Garg, Vegapay is an Indian Fintech Startup that enables banks, NBFCs and other institutions to go live with their own hyper-flexible card and credit programs.
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