The startup which is due to launch its first product in the second half of 2021 will focus on providing wealth management solutions and distribution of financial services to customers in metro and Tier 1 cities
Bengaluru: Former Paytm Money chief executive, Pravin Jadhav’s new startup Raise Financial has raised a seed round from Mirae Asset Venture Investments, as well as from a group of prominent unicorn founders and chief executives.
CRED founder Kunal Shah; Flipkart chief executive Kalyan Krishnamoorthy; PhonePe founders Sameer Nigam and Rahul Chari; Udaan founders Amod Malviya and Sujeet Kumar; Freecharge co-founder Sandeep Tandon, Pine Labs chief executive Amrish Rau; Jupiter Money founder Jitendra Gupta, Freshworks’ Gireesh Mathrubootham are some of the prominent names which have participated as a part of this round.
Multi-Act Private Equity, Blume Ventures via its Founders Fund also participated in this round along with US-based early stage fund Social Leverage making its first investment in India.
The startup which is due to launch its first product in the second half of 2021 will focus on providing wealth management solutions and distribution of financial services to customers in metro and Tier 1 cities.
The app-based solution will provide products across financing, insurance, wealth-investments, payments, Jadhav told Mint in an interaction. Through its products, Raise will target the tax paying demographic in these top-tier cities, with an annual income of ₹5 lakhs and above.
“Raise Financial will be bullish about differentiated distribution of financial services and has chosen Tier 1 as a focus. The plan is to be focussed on revenues right from the start," said Jadhav.
The company will utilise a large portion of this investment in setting up its teams, technology and infrastructure to launch its first product in this calendar year.
“Indian financial services market remains under-penetrated and there is huge space for multiple product offerings to cater to this large market. Pravin has a track record of building exceptional products grounds-up and scaling them into massively valuable businesses," said Ashish Dave, managing partner of Mirae Asset Venture Investments.
In 2017, Jadhav had started Paytm Money, the wealth management division of One97 Communications Ltd., the brand which owns Paytm. He had also founded e-commerce solution, Wishberg, which was acquired by Freecharge in June 2014.