Unicorn India Ventures invests $6,50,000 in Blockchain startup ChitMonks
CEO Insights team, Press Release
ChitMonks has developed a Blockchain-based product empowering the state government regulators to administerChit fund operations across the state on a private permissioned Blockchain network. They are extending their services to Chit fundcompanies of any size and any where in India,bydigitally enabling them with process efficiency (payment collections, online* auctions, eKYC, eSign etc), better underwriting (bank statement analysis, credit profiling, credit liabilities) and making their offerings more inclusive.
Bhaskar Majumdar, Managing Partner, Unicorn India Ventures, says, “Even before the current Covid 19 scenario, we saw the potential in ChitMonks to revolutionize the current antiquated system of the chit fund industry by bringing the whole ecosystem online. It is in-line with our philosophy of investing in businesses which can digitize current processes and make them more transparent and accessible.”
Our team comes from a strong finance and tech background hence fintech as a space was a natural choice
Chit Fund as an asset class has been serving millions of subscribers since ages long before banking expanded to its current state. But as a sector, chit funds and their companies don’t enjoy goodwill from govts, new generation customers and other stakeholders.According to ChitMonks’ research there are about 30,000 registered chit fund companiesin India, which are operatingregistered Chit fundbusiness with approximatelyRs1,50,000 crore AUM (Asset Under Management).
Pavan Adipuram, Co-founder, CEO ChitMonks, says, “Our team comes from a strong finance and tech background hence fintech as a space was a natural choice. Based on our research in the fintech space, we believedthat foundational technologies likeBlockchainfor fintech products were redefining the trust and transparency at a new dimension. We believed that such technologies can redefine chit funds and they canre-emerge as a bonafide sector where retail investors can invest and borrowmoney in a trustless manner.” Getting backing from Unicorn India Ventures lends credibility to our vision and proves that we are not the only one who thinks some old economy sectors need a new age shake up and a pinch of technology to usher them in the digital transformation world and beyond, he adds.
The funds raised will be used for product development, market expansion, strategic hiring and further investment in scaling up the current business.