Yenmo, which provides instant loans against mutual funds, raises Rs 9.2 crore

Yenmo, a lending platform that offers instant loans against mutual funds, has secured Rs 9.2 crore in a funding round led by Y Combinator, with participation from Pioneer Fund, Zaka VC and global angel investors.

The startup plans to use these funds to widen its product offerings, improve technology and grow its operations in the Indian lending market.

Aiming to make credit more accessible

Co-founded in 2022 by CEO and Co-founder Ashutosh Purohit and Aryan Agarwal, Yenmo aims to make credit more accessible and ethical.

Purohit described it as India’s first “Good Loan Company” and said the startup is focusing on improving transparency and fairness in the loan process. 

Yenmo is developing an end-to-end lending stack in-house and has pledged to design each new product with responsible lending as a priority.

Focus on ethical lending

Yenmo currently offers loans against mutual funds at interest rates starting at 10.5%, which it says is significantly lower than the more than 30% charged on typical personal loans. 

Customers can apply through the Yenmo app, which is available on both Android and iOS. Purohit said that borrowers often face issues like harassment and data misuse, and Yenmo is working to eliminate these pain points by providing human-assisted support rather than relying solely on automated bots.

The platform is expanding its range of secured lending products to include loans against stocks, insurance and digital assets. It is also preparing to introduce a savings account feature that combines higher interest with easy liquidity. 

Technology and ease of use

Yenmo has focused on building a streamlined digital platform that promises a 10-minute loan application process, with security and efficiency built into its system.

By collecting direct feedback from users, the company says it has been able to refine its services and maintain a customer-centric approach. As it moves forward with new product launches, Yenmo intends to keep ethical practices at the core of its design and operations.

With the fresh round of funding, Yenmo plans to strengthen its team, enhance technology and increase its market reach. The startup also plans to introduce new secured lending solutions over time, starting with loans against stocks.