Unicorn India Ventures, is announcing a fresh investment from its Rs. 400 crore Fund II, investing $650K in pre Series A round for ChitMonks. The startup aims to bring a revolution to the chit fund market, which has somewhat lost its spark in the age of technology.
Chitmonks’ agenda is simple. Just like every other brilliant idea we’ve had the last decade, ChitMonks wants to pick an offline market, and bring it online. There are about 30,000 registered chit fund companies in India, which are operating registered Chit fund business with approximately Rs1,50,000 crore AUM (Asset Under Management). ChitMonks saw the potential in this industry and decided to add the magic of blockchain to it.
The startup has built a blockchain environment, that will allow state regulators to administer Chit funds on privatized Blockchain networks , thus ushering in not just convenience, but greater oversight and security. They are extending their services to Chit fund companies of any size and anywhere in India, by digitally enabling them with process efficiency, better underwriting and making their offerings more inclusive. Some IT support companies are helping in this effort.
The company has a strong finance and tech background and is the perfect candidate for the meticulous task. “Based on our research in the fintech space, we believed that foundational technologies likeBlockchainfor fintech products were redefining the trust and transparency at a new dimension. We believed that such technologies can redefine chit funds and they can re-emerge as a bonafide sector where retail investors can invest and borrow money in a trustless manner,” said Pavan Adipuram, Co-founder, CEO ChitMonks.
And this is exactly the kind of investment Unicorn India Ventures, which recently closed its Rs. 400 crore investment fund, is looking for. Bhaskar Majumdar, Managing Partner, Unicorn India Ventures, says, “Even before the current Covid 19 scenario, we saw the potential in ChitMonks to revolutionize the current antiquated system of the chit fund industry by bringing the whole ecosystem online. It is in-line with our philosophy of investing in businesses which can digitize current processes and make them more transparent and accessible.”
ChitMonks couldn’t be happier about the way things have transpired, which is made evident by Adipuram’s statement who said, “Getting backing from Unicorn India Ventures lends credibility to our vision and proves that we are not the only one who thinks some old economy sectors need a new age shake up and a pinch of technology to usher them in the digital transformation world and beyond, ”
UIV is making large bets in the world of technology, thanks to its Fund II. The first investment to come out of this titanous fund was SaScan, a neo diagnostic startup that is working on both hardware and software front to bring about its first non intrusive Oral Cancer screening device ‘OralScan’ to the market.