Neo-banking Startup StashFin Raises $40 Mn In Series B Extension Round
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Singapore-based neo-banking startup StashFin has announced the successful completion of Series B extension equity financing of $40 million from a clutch of global investors. New investors participating in the round include Altara Ventures and Uncorrelated Ventures with previous investments from Integrated Capital, Kravis Investment Partners, Saison Capital, and Tencent Cloud Europe BV. Existing investors also participated in the round including Alto Partners, Snow Leopard Ventures, and Positive Moves.
The company plans to use the funds to pursue neo-banking across South Asia, double down on its plan to grow in existing markets, and strengthen the customer platform for local languages.
“We are sitting on a unique opportunity to enable millions of consumers to get closer to their dreams and improve financial inclusion. South Asia is on the cusp of a financial revolution. Our mission is to use technology to enable frictionless banking and services. We are excited to join hands with our new equity partners to pursue this neo-banking mission and grateful for the continued support from our existing investors. During these difficult times, most aspiring consumers can avail the credit line to study further or serve immediate family needs for health and everyday consumption,” said Tushar Aggarwal, founder chief executive officer, StashFin.
Founded in 2016, the company offers an innovative Credit Line Card in partnership with VISA that permits customers to access their credit facility with easy monthly installments and zero annual fees. Customers can order physical and virtual credit line cards that provide credit access across a broad array of digital payment infrastructure including POS machines, mobile wallets, and online payment gateway. Card features include free ATM withdrawals, lifetime free annual fees, free supplementary cards, and Payback rewards.
“We believe that technology provides the means to financial inclusion and democratization. Despite the adverse macroeconomic conditions, we continue to partner with Tushar and his team; they are passionate founders, with a strong innovative product built on a robust technology platform that is addressing a huge market opportunity. We have seen explosive growth by StashFin over the last few years,” commented Boon Hwee Koh, chairperson, Altara Ventures.
The company has been backed by a number of heavy-weight investors in financial services including Brett Rochkind, managing director, General Atlantic); and Renaud Laplanche, founder and chief executive officer, Upgrade, among others.
“A number of fintechs found it difficult to raise capital during these challenging times. StashFin has shown the resilience to innovate and grow without compromising on the bottom line. We see a strong potential in the frictionless, personnel-lite neo-banking opportunity and continue to remain invested and highly supportive of the business,” remarked Chris Kolenaty, founder, Snow Leopard Global.
Despite the economic impact of COVID-19, the Company has not only raised capital but also recovered quickly, seeing massive demand for its products and services. The startup has witnessed the growth of 200-times over the last few years and is reportedly profitable. With strong unit economics, technology infrastructure, and risk management, and this capital raise will enable StashFin to cement its position in its key markets. The startup has a headcount of over 200 and plans to expand its team across different geographies.
“It is often hard to find a combination of grit, resilience, determination, and agility in a startup team. Equally rare is a clear vision and great unit economics. The team has built extremely compelling bank-grade infrastructure in a frugal manner. The advanced machine learning and AI models can be scaled across various geographies. We are excited to partner with StashFin on this exciting journey,” added Salil Deshpande, general partner, Uncorrelated Ventures.
Singapore that has nearly 1,200 fintech startups has become the hub for the fintech industry with a 52 per cent market share in South East Asia. The Monetary Authority of Singapore has been praised for nurturing innovation without sacrificing security and helping the city-state become one of the world’s most advanced financial centers and an attractive hub for fintech startups.
StashFin taps into the potential $1 trillion neo-banking market opportunity in South Asia. It has built a neo-banking model that focuses on B2C use cases, attracting millions of applicants thus far. StashFin is among the growing global list of neo-banking startups including N26, Chime, NuBank, and Revolut that are providing digital banking services in various developed and emerging markets.