An interesting fintech startup announced a funding of USD 3.4 million
A fintech startup has announced a new round of funding. What an exciting piece of news it is!
Let us talk about the fintech industry. In simple language, finance + technology = fintech. It refers to the use of technologies that are created to bring an improvement and automate the forms of finance which are traditional. The fintech industry is seeing a huge push upward and is one of the very few industries which saw a boom during the pandemic. Many of the unicorn startups in our country belong to the fintech industry.
Some of the fintech startups in our country are Paytm, Lendingkart, Zest Money, Pine Labs, Paytm, Razorpay, Policy Bazaar, and many others. The fintech industry is expected to reach USD 1.3 trillion by the year 2025.
Let us now talk about the funding of a fintech startup that has taken place recently. Even before this, we had told our readers about other fintech startups that had announced their rounds of funding. Some of them were, on April 04, 2022, EnKash had raised USD 20 million, which was led by Ascent Capital. The participants in that round of funding were Baring India Private Equity Partners, Axilor Ventures, Mayfield India, and White Ventures.
Then on April 12, 2022, iTribe had raised USD 1 million of funds. That was the pre-seed round of funding and the investors included Kunal Shah, Eximius Ventures, Incisive Ventures, Reeju Datta, Gaurav Dahake, and many others.
Announcement of funding of a fintech startup
The fintech startup, Hubble has raised USD 3.4 million, which is equivalent to INR 26 crore, as announced on April 14, 2022. This round of funding that has taken place was the seed round of funding and was led by Sequoia Capital India. The other participants of this seed round of funding for the fintech startup were the angel investors like Kunal Bahl, who is the co-founder and Chief Executive Officer of Snapdeal, and Sateesh Andra, who is the Managing Director at Endiya Partners.
The fintech startup has made plans to use the funds raised in building a robust decentralized savings infrastructure. This model will then be used to power its customer-facing applications. The startup also plans to use the funds raised in onboarding and welcoming leading Indian and global brands on its platform. The fintech startup will also be hiring talent using the funds raised.
About the fintech startup that has announced its funding
The fintech startup, Hubble was founded in the year 2021 by Mayank Bishnoi and Neeraj Tulsyan and has its headquarters in Bengaluru, Karnataka. The fintech startup has its focuses on addressing the needs of consumers who are in search of different ways to save money, and during this process, the platform rewards the customers for having this behavior.
Coming how was the startup founded, it started with a simple question, “Why there has been so little innovation in the savings space in the last 3 decades?”. Then having spent many years in the finance and banking industry, the founders saw many innovations across different areas. But the primary savings product till then remained the 3% p.a. Bank savings account. The lack of innovation has meant that hard-earned money to purchase what teh heart desires, but is being offered only a 3-5% interest rate in the bank account. And that is a measly 25-4% after tax. \
This was unfair. So then, the fintech startup Hubble was started with the aim to solve this. It is engaged in revamping the whole system and designing savings experience that is meant to enable one to accomplish their aspirations and goals. Whether one is saving for a trip to the Maldives, the latest smartphone, or a new motorbike, the startup wants its customers to be rewarded generously for saving for/towards their purchase goals.
The fintech startup understands the feeling of owning what one desires and the feeling of appreciation when it is 10% less paid for. That is why the startup has come into partnership with the biggest brands on the planet to bring the most generous rewards for saving smartly for the purchases. The time for a paradigm shift is the say we save is now.
The features provided by the startup are-
Save as you like- Flexible savings plan that let the users save at their own pace.
Equal rewards- Get 10% rewards on all savings, no matter how small.
0% Tax- The rewards earned are entirely tax-free.
The startup has its application on both Android and IoS. The fintech startup has around 200000 users and is in partnership with more than 25 brands. Some of the brands are as follows- Yatra, Tanishq, Croma, Reliance Jewels, Myntra, Flo, Shoppers Stop, Urban Ladder, Sangeetha mobiles.com, and many others.
Most of the users of the platform of the startup are millennials and Gen Z who have an understanding of the credit system and are in search of innovative and digitally native savings products.
About the founders of the fintech startup
The fintech startup, Hubble was founded by Mayank Bishnoi and Neeraj Tulsyan. Both the founders are alumni of notable institutes IIT and ISB. Talking about the professional history of the co-founders, they were in a leadership positions in companies like Cleartax, which is a fintech software provider, Ola, which is a ride-hailing giant, Mastercard, and McKinsey, a consulting company.
Neeraj Tulsyan is an adventurer and was linked with Clear and Ola.
Mayank Bishnoi is a traveler and was linked with Mastercard and McKinsey.
About Sequoia Capital India
Founded in the year 2000, Sequoia Capital India is a venture capital firm and has its headquarters in Bengaluru, Karnataka. Sequoia Capital India is engaged in making investments in consumers, technology, and healthcare. It helps the daring build legendary companies.
The portfolio of Sequoia Capital India consists of companies that have the creative spirit, the resolute, the determined, the independent thinkers, the fighters, the true believers. Some of the companies are- 90 seconds, Aptus, Bibit, Cafe Coffee Day, CredAvenue, DailyHunt, CRED, Edusys, Fave, Drip Capital, Freo, Insider, JustDial, Ixigo, Mobikwik, Moka POS, Moglix, SaaS Labs, Star health, Zefo, Via, Voonik, Ula, Unacademy, WATI, Wobot, Wildcraft, Wakefit, Wingreens Farms, Zomato, Zetwerk, Zoomcar, Pine Labs, Practo, Octro, Near, Mu Sigma, India Shelter Finance, Jupiter, Idea Device, and many others.
What has been said about the deal?
Mayank Bishnoi, who is the co-founder of the startup, Hubble made a statement saying that more than 95% of the people of the country depend on their savings to fulfill their goals, but unfortunately, the options for savings are low, and have their own challenges. He further said that depositing money in banks gives a return that is less than the inflation rate and the rate of mutual funds cannot be predicted.
The fintech startup is trying to help people with something which Indians are taught from the day they open their eyes. We wish the startup a stroke of good luck and hope it has a bright and prosperous future ahead!
edited and proofread by nikita sharma
