MyMoneyMantra raises ₹104 crore from Vaalon Cap1 min read . Updated: 16 Jul 2019, 11:12 PM IST
- As part of the deal, Vaalon Capital have representation on MMM’s board
- MMM will use the funds to expand its footprint
MUMBAI : Europe’s Vaalon Capital has picked up a minority stake in New Delhi-based MyMoneyMantra (MMM) for ₹104 crore, a senior company executive said in an interview.
MMM, founded in 1989 by Raj Khosla, works in partnership with financial institutions to distribute various products, such as secured and unsecured loans, insurance policies, credit cards and mortgages, through its online and physical distribution network.
“We have been very impressed with the quality of the MMM team, their longstanding relationships with non-banking financial companies (NBFCs), banks and insurers, and their robust processes and platform," said Adam Teeger, senior advisor, Vaalon Capital.
As part of the deal, Vaalon Capital have representation on MMM’s board.
Vaalon is an independent private equity and advisory firm founded in 2016 and focuses on long-term investments in companies with significant growth potential. The firm’s investment ticket size ranges from $15 million to $75 million. It invests in both developed and emerging markets.
“We are particularly excited with the MMM team’s initiatives focused on leveraging data analytics, technology, and digital marketing. We look forward to partnering with them to help drive the company’s next phase of growth," he said.
MMM claims to have served four million customers and distributed ₹7,000 crore worth credit-related products through its platform, as on 31 March 2019. It has a physical presence in more than 50 cities across India, through 2,500 employees.
The firm has tie-ups with over 90 financial institutions, including ICICI Bank, HDFC Bank, Axis Bank, Citibank, PNB Housing Finance Ltd, Tata Capital, Standard Chartered, State Bank of India and Deutsche Bank.
MMM will use the funds to expand its footprint.
“We look to expand to 10 more cities by the end of this fiscal year," said Khosla, who is also the managing director of MMM. “We would also like to put our investment to good use by deepening our existing partnerships of almost 100 partners and also make significant investments in digital marketing and data analytics. We are also looking to better service our customers by making our website friendlier and possibly creating a mobile app to give on-the-spot response to all our customers," he said.
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