Stable Money, a Bengaluru-based fintech startup, has successfully raised INR 123.5 crore (approximately $14.7 million) in its Series A funding round. Led by RTP Capital, the round also saw significant participation from existing investors Matrix Partners and Lightspeed Ventures.
According to regulatory filings, the board of Stable Money approved a special resolution to issue 77,135 Series A Compulsory Convertible Preference Shares (CCPS) at an issue price of INR 16,019 each, raising a total of INR 123.56 crore. The funding round is still ongoing, and Stable Money is expected to attract more capital.
Founded in 2022 by Saurabh Jain and Harish Reddy, Stable Money is carving out a niche in the wealthtech sector by offering fixed-return asset investment opportunities for retail investors. The platform provides access to fixed deposits, debt mutual funds, bonds, and other low-risk asset classes that deliver inflation-beating returns, thereby enhancing the financial prospects of its users. The startup is also on the verge of launching a new platform to facilitate the buying and selling of bonds.
The recent capital infusion comes after Stable Money’s successful seed funding round in 2023, where it raised $5 million from Matrix Partners India and Lightspeed. The seed round funding was earmarked for hiring, product development, and business expansion, laying a solid foundation for the company’s current growth trajectory.
Stable Money operates in a highly competitive market, going head-to-head with established players like Groww, Zerodha Coin, Kuvera, and Upstox. The wealthtech industry is experiencing rapid growth, with a report by Allied Market Research estimating the global wealthtech solutions market will reach $18.6 billion by 2031. This promising outlook is attracting substantial investment and spurring innovation within the sector.
The timing of Stable Money’s funding round is particularly noteworthy as the wealthtech space is set to become even more competitive. Tata Digital, the digital arm of Tata Group, is planning to launch stock trading and mutual fund investment services on its super app, Tata Neu. Additionally, crypto unicorn CoinSwitch has diversified its offerings to include a variety of investment products such as fixed deposits, bonds, ETFs, stocks, and mutual funds.
Investor interest in wealthtech startups remains high. Last year, Dale Vaz, former CTO of Swiggy, raised between $7 million and $10 million from Accel and Elevation Capital for his wealthtech venture, underscoring the sector’s attractiveness to venture capital.
The fresh funds will enable Stable Money to accelerate its growth plans, including expanding its team, enhancing its product offerings, and scaling its operations. With strong backing from prominent investors and a clear strategic vision, Stable Money is well-positioned to capitalize on the expanding opportunities in the wealthtech market.
