BackFintech start-up MaxMyWealth in talks to raise $5 million
MaxMyWealth's founders have invested around $1-1.5 million in the company so far
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Mumbai: Recently launched fintech platform MaxMyWealth.com is in talks to raise close to $5 million to help grow its business in India and other geographies, said a senior executive of the firm.
MaxMyWealth, which launched operations in India last week, was founded by Vinay Chauhan, a UK-based former fintech investor, and Narayan Naik, professor of finance and joint chair, finance faculty, at London Business School.
MaxMyWealth leverages technology to help individuals make smarter savings and investment choices, while also saving tax. The platform launched its India operations last week and, going ahead, plans to expand to other geographies such as the UK, Europe and the Middle East, Chauhan said.
“We are running a process to raise close to $5 million. We are currently in advanced talks with three entities, including a UK-based conglomerate and a fintech-focused venture capital fund. The current fund-raising is being done at the UK entity level, which is the holding company," he said.
The founders have invested around $1-1.5 million in the company so far, while also raising another half a million from few individuals, he added.
“MaxMyWealth is an intelligent saving, investing and automated tax-saving platform. We have built sophisticated academic research into product selection. As a customer, the individual has to focus on life goals and the platform’s intelligent engine gives you the best investment options to achieve those goals. It also help you track them on a day-to-day basis," Chauhan said.
According to him, the platform does not push any product with customers, and all financial products are chosen based on the financial goals the customers set and the timelines for the same.
“Customers can access their savings in a convenient way through MaxMyWealth cards, which allow one to access their savings at ATMs and point-of-sale machines across the country," he added.
The fintech firm will soon be adding loans and insurance products to the bouquet of financial products available for customers.
A significant portion of the $5 million fund-raise that Chauhan and Naik are targeting will be used for the India operations.
“A large part of the $5 million will go into India, primarily for marketing, customer acquisition and for team expansion. We will use some part of it for other geographies as well. Going ahead, we plan to raise money locally for all geographies," Chauhan said.
The company currently has seven people in India. It expects to launch its UK operations by the end of the year.
“We are targeting $200 million in AUM in the first year, which translates into a customer base of 100,000. We will be targeting to reach this number through a couple of bank alliances. We are currently speaking with around three private sector banks for a tie-up," said Chauhan.
The company is targeting individuals above the age of 25 and with an annual income of at least Rs5-10 lakh.
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