Exclusive: INDmoney to raise $100 Mn at $500 Mn valuation in a round led by Tiger Global

Startups in the investment management space seem to have become investor favourites. Fintech platform INDmoney, which helps its users manage money across investments, taxes, loans, expenses and taxes via a single platform, is in talks to raise $100 million in a round led by existing investor Tiger Global Management, according to two people familiar with the development. 

Sources further said that this round is expected to value INDmoney at a whopping $500 million. The company last raised funds in January 2020. 

“Tiger is leading a $100 million round and existing investors including Steadview and Dragoneer are likely to participate,” said one of the sources requesting anonymity. “The terms of the deal are almost finalised and likely to be announced soon,” the person added.

Interestingly, Tiger Global has also invested in other companies in the same space: Groww, which recently attained a unicorn valuation and Upstox, another platform that helps its users manage investments.   

INDmoney has raised $58 million since its inception in 2019 from investors such as Tiger, Steadview Capital and Dragoneer. Founded by Ashish Kashyap — who had previously launched travel platform Goibibo — INDMoney also uses its robo-advisor to guide customers, most of them between the age group of 25 and 45. 

INDMoney also lets Indian users invest in US stocks through its platform. 

In August 2020, the Bengaluru-based firm had started offering third-party loan products ranging from home, personal, against property and against investments. According to the company’s website, a personal loan can range anywhere from 12-36% while interest on a business loan is between 12-22%. 

“INDmoney has been expanding its product offerings such as loan and on-demand credit for the past 12-15 months and the new proceeds is likely to be utilised in the company’s expansion plan,” said the second source.

As per media reports, the company is likely to enter the insurance segment soon. INDmoney’s other key rivals include Zerodha and Paytm Money, among others. 

Tiger Global declined to comment on the story. Queries sent to INDmoney remained unanswered as of publishing this article. We will update the story as and when it responds.

While the company is yet to file its annual financial statements for FY21, it recorded operating revenue of Rs 1.07 crore. The company took a 2.3X jump in its total income to Rs 7.26 crore from Rs 3.17 crore in FY19. During FY20, the company’s total expenditure surged to Rs 19.12 crore from Rs 3.06 crore in FY19.

As the pandemic ravaged the country and the world across 2020 and 2021, many people with disposable income and no place to invest turned to these new-age platforms to make and manage their investments. This gave a massive fillip to companies such as INDMoney, Zerodha, and others in the segment — making them appealing to investors. 

The online brokerage space saw around 11.3 million new Demat accounts being added between January 2020 to September 2021 to which Zerodha had contributed with 3.7 million accounts.