50Fin revolutionizing lending against securities raises $550,000 in funding

50Fin, a Bengaluru-based fintech startup revolutionizing lending against securities (LAS), has raised $550,000 in its latest funding round led by Arali Ventures and Nitin Gupta. 

The funding will help 50Fin expand its distribution network and scale its infrastructure offerings to Non-Banking Financial Companies (NBFCs).

Prior to this, the startup raised $500,000 in a pre-seed funding round in 2023 led by 100X.VC, Arun Venkatachalam, and Keynote Fincorp.

Focused on innovating the LAS space

Aditya Srinivas Prasad, CEO and co-founder of 50Fin emphasized the company's growth and dedication to innovating the LAS space, stating, "Over the last year, our distribution capacity has gone up 6X, and our products are now generating value across investor classes."

"We have also launched our B2B vertical, which allows Banks and NBFCs to digitize LAS for their clients while completely automating the entire operations of the product. We remain committed to being the leading full-stack LAS provider in the market and are on track to reach profitability in the next 12-16 months," Parad said.

What does 50Fin do?

Founded in 2022 by Aditya Srinivas Prasad and Darpan Tanna, 50Fin is focused on redefining secured credit through its embedded technology.

The startup streamlines the lending process, offering instant loans against mutual funds and shares with a seamless, 7-minute loan approval process. The platform eliminates the need for physical documents and CIBIL checks, making it a trusted solution for both consumers and NBFCs.

Partnerships with industry giants

In particular, 50Fin provides core infrastructure technology rails for NBFCs, empowering them to enhance their LAS offerings and drive growth and efficiency.

The startup claims to have established strategic partnerships with industry giants like Fi Money, Bajaj Capital, Jio Financial Services, and IIFL, offering LAS solutions to a diverse clientele.

What did investors say about 50Fin?

Arun Raghavan, Managing Partner at Arali Ventures, said, "We are very happy to partner with 50Fin on their journey as they build out the tech rails for lending against securities and mutual funds. Mutual fund ownership penetration in India has increased significantly over the past few years, but the ability to leverage this asset is limited to a few high-net-worth individuals today. We believe that this is a large market waiting to happen and that the team at 50Fin will go a long way in democratizing access to this product for the millions of mutual fund holders in India."

Ninad Karpe, Founder and Partner at 100X.VC added, "As the first institutional investors in 50Fin, we are delighted that they have raised $550K to propel the velocity of their journey. With their unique offering in the Indian market, we are confident that 50Fin will take a leadership position in this segment in India."