Fintech startup Volt Money has unveiled a strategic partnership with digital payments giant PhonePe to provide loans against mutual funds to their extensive user base.
Partnership Details
Under this collaboration, Volt Money will seamlessly integrate its loan offerings within the PhonePe mobile app. Customers will have access to loans ranging from INR 25,000 to INR 5 Cr against their mutual fund investments. This move enables Volt Money to leverage PhonePe’s massive user base, which currently stands at 535 Mn users, to enhance its lending services.
Volt Money’s co-founder and Chief Business Officer (CBO), Bharat Lamba, expressed excitement about the partnership, emphasizing their commitment to providing affordable loan solutions to millions across India. He highlighted Volt Money’s rapid expansion in distribution, with integration into more than 10 fintech platforms.
Hemant Gala, CEO of lending at PhonePe, also shared his enthusiasm about the collaboration, stating that they are delighted to offer loans against mutual funds through their newly launched secured lending platform.
About Volt Money and Its Offerings
Founded in 2022 by Bharat Lamba, Lalit Bihani, and Ankit Agrawal, Volt Money specializes in providing loans against mutual fund investments. Additionally, the fintech platform offers plug-and-play and deep integration capabilities for B2B fintech players, facilitating embedded finance solutions for their clients.
Volt Money secured $1.5 Mn in pre-seed funding last year from notable investors such as Titan Capital and All In Capital.
Market Dynamics and Growth Potential
The partnership between Volt Money and PhonePe reflects the increasing interest in mutual funds as a potential asset class for secured lending. This trend has attracted new players to the segment, including Jio Financial Services and Dhan, aiming to tap into India’s burgeoning digital lending market.
The Indian mutual fund industry has witnessed significant growth, with assets under management surpassing INR 44.82 Lakh Cr as of June 2023, marking a more than fivefold increase over the past decade.
Moreover, the proliferation of smartphones and internet connectivity has fueled the demand for digital lending solutions. Industry projections suggest that the digital lending market could reach $720 Bn by 2030, indicating substantial growth opportunities for fintech players like Volt Money and PhonePe.
