Fintech startup PeLocal raises $5 million in a Series A funding round

Chennai-based fintech startup Pelocal has raised $5 million in a Series A funding round led by UNLEASH Capital Partners and Unicorn India Ventures, with participation from prominent angel investors.

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The startup had previously raised $2 million in October 2024 from Unicorn India Ventures.

Founded in 2021 by Vivekanand Tripathi and Vikas Garg, Pelocal provides an AI-powered payments orchestration platform that embeds payments into WhatsApp and other messaging platforms. By enabling enterprises to acquire, engage, and collect from customers within chat conversations, the platform powers use cases such as ticketing, collections, customer acquisition, and servicing.

Pelocal is also developing infrastructure solutions for banking, financial services and insurance (BFSI) enterprises. The startup claims that it currently works with more than 40 enterprises across BFSI, transit, and utilities, with clients including Canara HSBC Life Insurance, Delhi Metro, Oriental Insurance, Mahanagar Gas, and Asianet Broadband.

It also claims to serve over 5 million unique users each month and has grown its total payment value sixfold since its last fundraise. 

Pelocal now operates at an annualised payment run rate of more than $500 million. The startup reported an annual revenue run rate of about $1.5 million and aims to reach $10 million within the next 18-24 months.

It will use the raised capital to accelerate product development, expand existing use cases, and strengthen go-to-market efforts.

“Until now, digital communications have largely been limited to peer-to-peer messages or one-way notifications. Our vision is to bring last-mile payments to the masses via WhatsApp by leveraging AI and advanced technologies. This fundraise enables us to execute that mission, and we’re thrilled to have the support of investors who share our conviction,” said Vivekanand Tripathi, Founder & CEO, Pelocal.

“With strong market demand and the backing of our investors, we’re committed to delivering world-class products at the intersection of payments, communication, and enterprise technology,” added Vikas Garg, Co-founder, Pelocal.

“Pelocal is redefining how enterprises interact and transact with customers by embedding payments into conversational interfaces like WhatsApp. With AI at the core, the company is solving a large-scale problem for Indian businesses and has the potential to scale globally. We are excited to back the Pelocal team on this journey,” said Natsuki Sugai, Managing Partner, UNLEASH Capital Partners.

Anil Joshi, Managing Partner, Unicorn India Ventures, said, “We believed in Pelocal’s vision early on, and the company has delivered exceptional growth since our first investment. The surge in conversational commerce and embedded payment solutions presents a massive opportunity, and Pelocal is well-positioned to lead this transformation.