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The Money Club raises $1.7M in pre-Series A round

the money club funding

The Money Club, a fintech startup, announced that it has raised $1.7 million in a pre-Series A round from Global VC fund SOSV and Venture Catalysts. 

The round also saw participation from investors including Blume Founders’ Fund, LetsVenture, Keiretsu Forum, Rockstud Capital, Astarc Ventures, and LIV Advisors Ltd.

Established by Manuraj Jain and Surajit Ray, The Money Club uses AI algorithms to efficiently underwrite high frequency, micro pooling of funds by analyzing user behaviors. Serving as an artificially intelligent chit fund cashier in the form of an Android app, the startup claims to provide a higher value proposition to savers, investors, as well as borrowers, compared to other available options in the market.

The startup plans to use the freshly raised funds to disrupt the country’s largely unorganized $50 billion chit fund sector and deliver greater security and transparency.

Speaking about the funding, Manuraj Jain, Founder and CEO of The Money Club, said, “Users have been pooling money for over 700 years and this market has been growing at a 15 percent CAGR for the last 10 years. High onboarding barriers and lack of innovation in savings products have driven 180 million in India to resort to pooling funds illegally in the form of committees, beesi, chitty, and chit funds, and expose themselves to fraud and loss of their hard-earned money.”

“We want to build the world’s largest AI-embedded money pooling platform from Bharat. An overwhelming response from our users and getting oversubscribed in this round by our investors provide us with the fillip to grow faster,” he added.

The Money Club platform has acquired more than 200,000 users and claims to have grown 500 percent in the last 12 months. The platform has witnessed users pooling about Rs 40 crore by forming 17,000 money clubs so far. The Money Club will use the freshly infused capital to strengthen its technology platform and operations.

William Bao Bean, General Partner at SOSV, said, “Money Club has been a pioneer in fostering economic empowerment through its solution, bringing trust and transparency to financial transactions for millions of people in India. We’re impressed with the team’s relentless focus in tackling this multi-billion opportunity: Money Club’s AI-enabled underwriting model is a game-changer that will streamline capital flows for the whole nation.”

The Money Club seems to be offering unique solutions in the fintech segment to empower the masses. I’m sure the company will soon emerge as a dominant player in the market. My best wishes to the team of The Money Club.

Shishir Gupta, Founder and CEO, StartupLanes

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