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Bangalore-based FinTech startup Vananam, which offers a platform for alternate investment options, is scripting success stories with its latest version, 2.0.
Founded by Keshav Gopaldas Inani in 2021, the company provides alternative investment solutions for all. These investments include startup equity, venture capital financing, working capital financing, invoice discounting, and revenue-based financing.
Within a year of coming into existence, Vananam has helped raise angel rounds for over 12 startups. These funds have ticket sizes ranging from Rs. 50 lakhs to Rs. 5 crores. Vananam has clocked a GMV of 800 crores (US$100 million) in the last eight months. For Vananam, the upcoming months look quite positive.
According to INC42, the Indian FinTech market opportunity is expected to be worth US$2.1 trillion by 2030. India currently has 22 unicorns in this space. Neobanking and lending tech are the two major segments in the FinTech market.
The market for alternative investment platforms is heating up significantly in India. Players like Kredx, Jiraff, Grip Invest, and Tyke have been providing similar services to retail investors.
Vananam has raised funds for reputed organisations to meet their financing requirements. It has helped medium-sized and large organisations raise working capital funds through invoice discounting and revenue-based financing. The firm is in advanced talks with large organisations about fulfilling its financing requirements in the domestic and foreign markets.
The market for alternative investment platforms could be the next area of opportunity for startups to explore. The Reserve Bank of India published household financial savings data based on select indicators last month. Deposits with banks remain a significant form of savings in India. As of March 2022, savings held in fixed deposits stood at 48.9% of the gross domestic product (GDP). In comparison, savings through life insurance policies and mutual funds (MFs) stood at 22.3% and 9.1% of GDP, respectively.
There is a considerable opportunity once Indians begin investing in their assets outside of fixed deposits and life insurance policies. That is where the “alternative investment space” comes into play.
Assured by its success, internal sources claim that Vananam is raising capital to fund growth and operations. The information has come from a very reliable internal source. Vananam, which translates to “creating wealth” in Sanskrit, is in talks to raise Rs. 160 crores (US$20 million) in a fresh round of funding and expects to close by years end. Vananam has already raised undisclosed amounts in angel and seed rounds. According to the news, the round is slated to finish by December, but given that it is now 130% subscribed, the company may raise a larger round.
Vananam will be the most valuable player in the alternative investment market, with a predicted valuation of US$200 million. Platforms like Vananam teach investors how to move their resources from fixed deposits and insurance funds to alternative investment options with much higher returns.