While RemitGuru, which is into the digital remittance space, had seen an early investment by Infibeam Avenues and Paytm a few years back, Pentathlon and Kacholia will be investing for the first time.
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Like most fintech startups, RemitGuru has seen tremendous growth during Covid pandemic and is raising money to fund its expansion, said two people in the know.
The digital money transfer platform was founded in 2012 by Naushad Contractor and incubated at Infibeam Avenues, the BSE-listed fintech company.
Muthoot Group and ICICI Bank too had picked up minority stakes in the startup in 2018. ET could not confirm whether they will be looking to pump in money in the current fundraising round.
“The fund raise is essentially focussed on a handful of investors and is spearheaded by Paytm, Infibeam and Kacholia,” a person aware of the development said.
An email query sent to RemitGuru, Paytm, Infibeam, Kacholia, ICICI Bank and Pentathlon on Tuesday morning did not elicit any response till press time.
Interestingly, this also comes at a time when Infibeam is already making a larger play in India’s digital infrastructure.
“All the existing investors were offered to participate in the funding round. We have chosen not to participate due to some regulatory issues,” a person with one of the existing investors told ET.
ET had first reported on February 27 that in a bid to capitalise on growing digital payment space in India and a push for a digital ecosystem; Reliance Jio, Google, Facebook and Infibeam Avenues are joining hands for Reserve Bank of India’s (RBI) New Umbrella Entity (NUE).
As per the company’s website, RemitGuru allows money transfer or remittances between countries for corporate and retail customers.
The startup also claims to provide a “white label” facility to banks for providing money and remittance facilities to customers globally.
As per the people aware of the development, the startup now wishes to expand in markets such as the US, Canada, Europe and Australia.
As the Covid pandemic and lockdowns continued throughout the world, some of the countries such as India, China and the Philippines have seen a spurt in remittances.
The startup is betting on consumers relying more on online platforms and apps to send money from bank accounts in one country to their home country in the coming years.