[Funding alert] Chit fund cashier app The Money Club secures investment from Venture Catalysts, others
AI-based chit fund cashier apphas raised an undisclosed amount of funding from Venture Catalysts. The round saw participation from investors including Dhruv Agarwala, CEO at .com; Bharat Jaisinghni, Director-Polycab Wires; Tushar Singh, Dominor Investments; veteran technologist, Dr Aloknath De, LetsVenture, and Keiretsu Forum.
Founded by IIT Kharagpur alumni Manuraj Jain and Surajit Ray, The Money Club leverages advanced machine learning algorithms to bring transparency into online money club groups.
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Speaking on the funding, Manuraj Jain, Founder and CEO, The Money Club said in a statement,
"Money Club is propelling Digital India's mission to get the $50 billion unregistered money pooling market online. We deliver financial services to India's lower middle class, which typically have been marginalised in the current financial system. We have built the worlds 1st artificially intelligent ROSCA cashier to address the problem of fraud in this industry."
With investors' support, Manuraj says that his company will become the largest digital player in this market in the next five-to-seven years.
Claimed to be India’s first artificially intelligent chit fund cashier mobile app, The Money Club underwrites high frequency, micro pooling of funds by studying user behaviour. The platform continuously identifies unique traits that are fed into their algorithms to underwrite users’ money clubbing limits.
According to a statement released by the company, the algorithms dynamically monitor the behaviour of every user as they keep transacting on the platform. Only users who have a good track record are taken to bigger clubs. The verification process to join The Money Club is completely online, thereby minimising the hassle of heavy documentation.
Dr Apoorv Ranjan Sharma, President and Co-founder, Venture Catalysts, commented,
"While chit fund is not a new concept, The Money Club has added a fresh twist to it. According to industry data, chit fund users are often subjected to fraud by the cashiers, losing their hard-earned money because of their opaque and fraudulent practices. With its unique approach and technological expertise, The Money Club is not only addressing this problem but also enabling easier access to this saving based financial product."