Fintech Startup GalaxyCard Raises $450,000 Angel Round From JITO Angel Network
The company will use the funds raised to expand the team and scale up consumer base
Gurugram-based fintech startup GalaxyCard announced on Wednesday to have raised $450,000 in an angel round of funding led by community-based platform JITO Angel Network.
Gopi Latpate, Samyakth Capital, Anant Agarwal and existing investors also participated in this funding round.
Launched in 2018 by Amit Kumar, it offers lending solutions to tier-II, small-town individuals by providing an instant app-based credit card.
"This is a huge opportunity and JITO Angel Network brings not only capital but the community strength, we foresee to achieve our vision and targets much faster," shared Amit Kumar, founder, GalaxyCard.
GalaxyCard customers simply download the app and register for free online processing. Digital version of PAN Card, Aadhar Card, and Bank Statements are used for instant verification. The digital credit card can be activated in under three minutes and offers no annual, subscription, or interest fees to the customers. This credit can be used to make online purchases and various payments, such as utility bills, phone recharges and even paying at roadside stalls.
GalaxyCard will use the funds raised to expand the team and scale up its consumer base. The startup also aims to launch a premium version of the card for customers with an income of less than INR 30,000 per month. Additionally, it is also exploring credit card options for students to make them manage their education expenses and learn financial management from an early age.
"Credit card reach in tier-II cities has been minimal. Financial inclusion of Rural India is important for building Atmanirbhar Bharat. GalaxyCard using its proprietary technology is bridging this gap. The vision of GalaxyCard and their approach to tech-enabled lending is a key differentiator. Our investment in GalaxyCard comes as a result of deep alignment with Amit's vision of GalaxyCard and on his passion to make credit cards available to everyone in Bharat," said Sunil Kumar Singhvi, vice chairman, JITO Angel Network.
Since its inception, the company has a customer base over 700 towns across the country. GalaxyCard is growing its customer base by 50 per cent per month and plans to increase the existing customer base 5x within the next 4 months.
In April 2021, there were over 500 thousand ATM transactions and nearly 160 million point-of-sale transactions made via credit card in India. The credit card transactions had decreased significantly in the months of March to May 2020, due to the COVID-19 pandemic, according to research firm Statista.