[Funding alert] Wealthtech startup Fisdom raises $11M led by PayU
This marks PayU’s entry into the wealthtech segment and is in line with the startup's goal of building a comprehensive digital fintech ecosystem of merchants, consumers, and banks.
![[Funding alert] Wealthtech startup Fisdom raises $11M led by PayU](https://images.yourstory.com/cs/2/b87effd0-6a66-11e9-ad33-3f8a4777438f/yourstory-shopatplaces-funding1568116838237.png?mode=crop&crop=faces&ar=2%3A1&format=auto&w=1920&q=75)
Naspers-owned digital payments major PayU has picked up a minority stake in Bengaluru-based wealthtech startup Fisdom with an investment of $11 million.
While PayU led the fresh round of investment in Fisdom, the latter's current investors, Saama Capital and Quona Capital, also participated in the round.
Founded by Subramanya SV and Anand Dalmia, Fisdom is a digital wealth management platform providing investments, savings, and protection solutions. The startup aims to blend technology with financial advice to integrate simplicity, accessibility, and trust in financial products for the vast underserved population in India.
It partners with banks and financial institutions to provide access to financial products. To date, Fisdom has partnered with Oriental Bank of Commerce, Bank of Baroda, Allahabad Bank, Karnataka Bank, and City Union Bank, among many others. At present, the startup serves more than 200,000 active customers, with a majority of them based in Tier II and III towns.
Speaking on the investment, Anirban Mukherjee, CEO, PayU India, said: “This investment marks PayU’s entry into the wealthtech segment and is in line with the company’s strategic goal of building a comprehensive digital fintech ecosystem connecting merchants, consumers, and banks locally.”
Speaking on the wealthtech platform's USPs, he added,
“Fisdom, with its multi-product strategy and a robust and scalable digital platform, offers immense cross-selling opportunities. The company has a strong management team led by experienced founders, and we are happy to partner with them and work towards providing a broader fintech platform around core payments and lending business. With this investment, PayU is one step closer to offering payments, lending, and wealthtech services in a single stack.”
The Indian wealth management industry, which has experienced significant growth in the past few years (21 percent CAGR between 2011 and 2017), is expected to remain strong, driven by the digital transformation that is opening the industry up to the mass market. It has seen over 800 million potential customers to date.
As per industry reports, Indians have more than $1.8 trillion of their wealth in low-yield bank deposits and often don't invest in capital markets for reasons such as low financial literacy, low trust in market dynamics, and inertia to act.
Fisdom is trying to fill this gap in the Indian ecosystem by offering customised wealth-management solutions to the vast majority of the population that is largely unserved or underserved by traditional financial advisors.
Subramanya, Co-founder, and CEO of Fisdom, said,
“This investment allows us to continue innovating in order to better serve our consumers including by bringing new products like insurance and broking. PayU, being one of the leading fintech players in the country, provides an immense opportunity that we are keen to explore. We are very happy that our earlier investors, Saama Capital and Quona, continue to support us in our endeavour.”
(Edited by Athirupa Geetha Manichandar)
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