Fintech start-up Moneyview has become the sixth unicorn in the country after its latest funding round. The start-up raised $4.6mn from Accel India and Nexus Ventures.
After receiving approval from the company’s board of directors, 60.23 lakh equity shares have been allotted to Accel India and Nexus Ventures. This was first reported by Entrackr.
The shares have been issued at Rs 64.15 each with the intent to raise around $4.65mn. The valuation of the start-up when the fund was being raised was reportedly $1.2bn. Moneyview, which was started in 2014, provides financial services such as personal loans, business loans and credit score tracking.
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Reports suggest that the funding round is still going on and in the coming months, the start-up might raise more capital. Along with this, the start-up is also planning to raise Rs 250 crore via private placement of non-convertible debentures (NCDs) through unidentified investors.
Acquisition of Fintech Start-Up Jify
The funding news comes at a time when the start-up just acquired fintech start-up Jify. Financial platform Jify helps employees access their salary on demand. So if an employee is in need of funds in the middle of the month or towards the end, they can access a portion of their salary before the salary day. The start-up was acquired by Moneyview in a share swap arrangement.
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A share swap agreement typically occurs when businesses exchange their equity-based assets during mergers and acquisitions. So basically, the two investors of Jify, Accel India and Nexus Venture Partners got shares in Moneyview. Following the acquisition, the employees of Jify will be absorbed by Moneyview.
Confirming the acquisition, Moneyview reportedly mentioned that the deal would help Jify reach out to a wider range of employees and organisations. Additionally, Jify will be able to provide a wide range of services to consumers, such as home loans, personal credit, business loans, loans against property and more, as per reports.
Bengaluru-based Moneyview was started in 2014 by Puneet Agarwal and Sanjay Aggarwal. As per Tracxn, the start-up raised $215mn in nine rounds. The start-up is backed by key investors such as Tiber Global, Accel India, Nexus Venture Partners and more. In terms of financials, the company posted a revenue of Rs 577 crore from Rs 222 crore in FY22. As per Entrackr, the start-up posted a profit of Rs 163 crore in FY23. This was a significant jump from Rs 6 crore in FY22. Some of the competitors of Moneyview include Kissht, Branch and CASHe.
Surge in Unciorns
Compared to 2023, there has been an increase in the number of unicorns in 2024. In 2023, only two unicorns were created, which include quick commerce start-up Zepto and fintech start-up InCred Finance.
However, in 2024, by September, six unicorns had been created, including Moneyview. The other startups that became unicorns this year are Krutrim, Perfios, Porter, Rapdio and Ather. Factors such as increased funding in the sector and more trust in the private markets are the reasons behind the same.
