Singapore-based neo-banking startup StashFin has announced the 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.
The company said that 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.
Founded in 2016, StashFin offers a Credit Line Card in partnership with VISA that permits customers to access their credit facility with easy monthly instalments 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.
The Company has been backed by a number of heavy-weight investors in financial services including Brett Rochkind (Managing Director at General Atlantic), Renaud Laplanche (Founder and CEO of Upgrade) amongst others.
Singapore that has nearly 1,200 fintech startups has become the hub for the fintech industry with a 52% market share in South East Asia.
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. StashFinis 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.
The company claimed that despite the economic impact of Covid-19, it has not only raised capital but also recovered quickly, seeing massive demand for its products and services. The startup has witnessed a growth of 200x over the last few years and is reportedly profitable. The startup has a headcount of over 200 and plans to expand its team across different geographies.
Tushar Aggarwal, Founder & CEO of StashFin said, “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.”
Koh Boon Hwee of Altara Ventures commented “We believe that technology provides the means to financial inclusion and democratisation. 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.”
Chris Kolenatyfrom Snow Leopard Global said, “A number of fintech 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.”
Salil Deshpande from Uncorrelated Ventures said, “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.”