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Vegapay Raises $5.5M in Seed Round Led by Elevation Capital

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Fintech startup Vegapay has secured $5.5 million in a seed funding round led by Elevation Capital, with additional participation from Eximius Ventures. This latest round of investment comes after the company raised $1.1 million in pre-seed funding in 2023, led by Eximius.

The newly acquired funds will be utilized to enhance Vegapay’s product suite, focusing on product development and regulatory compliance updates. The company also plans to allocate a significant portion of the funds to hire top-tier developers, designers, and engineers to drive innovation.

Vegapay aims to assist banks, non-banking financial companies (NBFCs), and other financial institutions in launching and managing product innovations with hyper-configurable, flexible, and customizable credit solutions.

“Empowering financial institutions with cutting-edge technology isn’t just a vision; it’s a revolution. At Vegapay, we’re not just changing the game; we’re rewriting the rules, ensuring that innovation in financial technology isn’t a luxury for the few, but accessible to all,” said Gaurav Mittal, CEO of Vegapay.

Founded in 2022 by Gaurav Mittal, Himanshu Agrawal, Puneet Sharma, and Abhinav Garg, Vegapay is building a lending tech stack and a card management system that enables regulated entities and fintech firms to issue and increase the penetration of card and lending in India.

The company offers a flexible ‘pay-as-you-go’ approach, reducing financial barriers. Flexibility, scalability, and speed are the key differentiators that set Vegapay apart in the rapidly evolving banking landscape, according to the company.

“Financial institutions’ demand for modern credit platforms is accelerating at an unprecedented scale, driven by customers seeking best-in-class experiences and products, numerous embedded credit partnerships, and new form factors like credit on UPI and compliance requirements,” said Vaas Bhaskar, Principal at Elevation Capital. “These modern systems will form the foundation of all innovations by banks and credit providers. We see great potential in Vegapay’s solutions to fill this void. The team’s nuanced understanding of the needs of financial institutions further solidifies our excitement to partner with Vegapay in this journey.”