Venture capital firm Unicorn India pours $6.5 million into blockchain startup ChitMonks
Unicorn India Ventures Invests in ChitMonks, Revolutionising the Chit Fund Industry in India
In a significant move towards digital transformation, Unicorn India Ventures, a Mumbai-based venture capital fund, has invested in ChitMonks, a Hyderabad-based Fintech/Blockchain startup. The investment, worth $6.5 million (Rs 47.5 crore) in a pre-series A round, is a testament to Unicorn India Ventures' belief that old economy sectors need a new age shake-up and technology for digital transformation in India.
ChitMonks, founded by a team with a strong background in finance and technology, aims to re-emerge chit funds as a sector where retail investors can invest and borrow money in a trustless manner in India. The company believes foundational technologies like Blockchain can redefine trust and transparency for chit funds, an industry that has been serving millions of subscribers for a long time, predating the expansion of banking in India.
Bhaskar Majumdar, Managing Partner of Unicorn India Ventures, believes that ChitMonks can revolutionize the Chit fund industry in India by bringing the whole ecosystem online. The company's vision is not alone, as evidenced by the investment from Unicorn India Ventures.
ChitMonks has developed a Blockchain-based product for state government regulators in India to manage Chit fund operations, and for Chit fund companies of any size and location in India, to digitally enable their operations with process efficiency. The product is a private permissioned Blockchain network, improving underwriting with bank statement analysis, credit profiling, and credit liabilities.
The funds raised by ChitMonks will be used for product development, market expansion, strategic hiring, and scaling up the business in India. The company aims to make Chit fund offerings more inclusive, extending its services to companies of any size and location in India.
ChitMonks' digital platform will streamline various processes, including payment collections, online auctions, eKYC, eSign, and more. The company's Blockchain-based solution will bring transparency and trust to the Chit fund industry in India, addressing the need for a more efficient and reliable system.
There are approximately 30,000 registered chit fund companies in India, managing approximately Rs 1,50,000 crore in Asset Under Management (AUM). The backing from Unicorn India Ventures lends credibility to ChitMonks' vision, and the company is poised to revolutionize the Chit fund industry in India, bringing it into the digital age.
