GrowFix secures USD 2 million in funding led by Zerodha’s Rainmatter

GrowFix, an alternate debt assets platform, has reportedly secured USD 2 million through a seed funding round which was led by Zerodha’s fintech & fund incubator Rainmatter. Other participants that were involved in the funding was Better Capital, an early-stage venture capital firm.

A group of around 20 entrepreneurs, such as Cred’s founder Kunal Shah, Co-founder of India Gold Deepak Abbot, Paytm’s former CEO Praveen Jadhav, and PayU’s co-founder Nitin Gupta had also participated in GrowFix’s funding round.

According to reliable sources, GrowFix intends to use the newly secured funds to develop advanced technologies in order to mitigate risks as well as educate potential investors regarding investing in debt assets and associated risks.

For those unaware, GrowFix specializes in offering affluent and retail investors asset-based fixed income services that ensure better returns as compared to investing in fixed deposits. The company was founded in January 2020 by Anshul Gupta, Shashank Chimaladari, Abhik Patek, and Ajinkya Kulkarni.

According to Ajinkya Kulkarni, there is currently a huge demand for products that offer 2-3% higher returns as compared to fixed deposits. He added that the fresh funds will be used for developing technologies to not only educate investors about investing in debt assets but also to underwrite any associated risks.

Co-founder and CEO of Zerodha Broking Nithin Kamath mentioned that GrowFix’s easy-to-understand asset-backed products will allow for first-time retailers to invest in capital markets. He further claimed that the company’s products are not only to understand as compared to debt mutual funds but also yield better returns unlike bank fixed deposits.

It is to be noted that the company had launched its first asset GrowFix Gold in December 2020, which comprised of gold-backed loans wherein retail investors would receive an 11% interest rate upon investment. Around 50% of the asset had been subscribed within four weeks, GrowFix claims.

Source Credits –

https://economictimes.indiatimes.com/tech/funding/growfix-raises-2-million-in-seed-funding-from-zerodha-others/articleshow/80490793.cms