[Funding alert] Social commerce fintech startup EarnWealth raises $500K in Pre Series A
Pune-based, a social commerce fintech startup, has raised Rs 3.5 crore ($500,000) in equity in Pre Series A funding round led by a few Pune-based angels at a valuation of Rs 50 crore, the company said.
Started by Rajesh P Nair in 2014, EarnWealth creates micro-entrepreneurs, called Mahalakshmi, in financial services.
According to Rajesh, financial products are very complex and difficult to understand. While fintech in India is seeing a boom, most of the players have understood that a complete digital journey for their customers is not possible. Hence the need for "phygital" journey (physical + digital) arises. That is what EarnWealth does. It offers an assisted journey to the customers of fintech players and helps them to complete the transaction, he added.
The company said it plans to expand its Mahalakshmi micro-entrepreneurs’ network, introduce more products and partner with more financial institutions with the funding.
"Personal finance is a big opportunity in India and customers always prefer to buy from trusted sources. That is where our Mahalakshmi network will play a vital role and redefine the way financial products are sold in India," he added.
EarnWealth started as a traditional B2B distributor for financial products. In 2020, this experience prompted the team to introduce the social commerce model for distribution of personal loans, and it witnessed good traction. To accelerate the growth at a lower cost, the company built a model called Mahalakshmi targeting the educated homemakers in India to help them start their own financial consultancy. To help them get trained on customer acquisition, it has developed an android application called Kamate Raho.
Currently, around 100 Mahalakshmis are already working on the platform, and with the help of new funds, EarnWealth is targeting to add 10,000 Mahalakshmi in a year.