The startup, backed by MSME lender Capital India Finance, has attracted most of the funds in its latest round from investors with a non-finance background.
“Even non-finance entities are showing interest in the digital space considering the opportunity created post-Covid,” said Harsh Kumar Bhanwala, executive chairman of Capital India Finance. “Dr Trehan was the first investor investing into the promising business model of RapiPay that has identified the assisted payments space as a way forward to increase financial inclusion in the country.”
The startup helps people execute basic banking transactions. Its value of transactions has gone up more than 40 times in the last one year. “From Rs 74 crore during the October-December quarter of 2019, transactions until October-end November have already reached Rs 3,693 crore,” Bhanwala said.
Besides Trehan, the startup has attracted investors from a varied Indian business diaspora. The Series A round has attracted equity of $9 million equivalent to Rs 65 crore so far.
Among the other investors is Puneet Dalmia, Managing Director of the Dalmia Bharat Group. Companies such as FMCG major Dabur India, QRG Investments, a promoter entity of Havells brand, Sheela Foam, a Sleepwell brand entity, and ACME, a company in solar energy space, have also invested in the fintech startup.
Capital India Finance, an MSME-centric NBFC with a loan book of more than Rs 5,000 crore, also runs a housing finance and remittance subsidiary. An authorised dealer licence holder from RBI to conduct forex business, it plans to expand this business. It will offer comprehensive forex solutions to various customer segments.
The company has planned to open up branches in major cities to provide various services like currency exchange, overseas remittances, multicurrency prepaid forex travel card, and overseas travel insurance for student, leisure and business travellers.