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Digital lending and card management platform Vegapay has raised $5.5 million in a seed round led by Elevation Capital, with participation from Eximius Ventures. In 2023, the startup had secured $1.1 million in pre-seed funding led by Eximius.

The funding will be used to enhance Vegapay’s product suite, focusing on product development and regulatory compliance updates, said the company in a statement. A significant portion of the funds will also be allocated to hire top-tier developers, designers, and engineers to drive innovation, it added.

With this investment, Vegapay aims to help banks, NBFCs, and other financial institutions launch and manage product innovations with hyper-configurable, flexible, and customisable credit solutions. 

“Empowering financial institutions with cutting-edge technology isn’t just a vision; it’s a revolution. At Vegapay, we’re not just changing the game; we’re rewriting the rules, ensuring that innovation in financial technology isn’t a luxury for the few, but accessible to all.,” said Gaurav Mittal, CEO of Vegapay. 

Founded by Gaurav Mittal, Himanshu Agrawal, Puneet Sharma, and Abhinav Garg in 2022, Vegapay is building a lending tech stack and a card management system that enables regulated entities and fintech firms to issue and increase penetration of card and lending in India.

The company offers a flexible ‘pay-as-you-go’ approach, reducing financial barriers. Flexibility, scalability, and speed are the key differentiators that set Vegapay apart in the rapidly evolving banking landscape, the company said.  

“Financial institutions’ demand for modern credit platforms is accelerating at an unprecedented scale, driven by customers seeking best-in-class experiences and products, numerous embedded credit partnerships, and new form factors like credit on UPI and compliance requirements,” said Vaas Bhaskar, Principal, Elevation Capital.

“These modern systems will form the foundation of all innovations by banks and credit providers. We see great potential in Vegapay’s solutions to fill this void. The team’s nuanced understanding of the needs of financial institutions further solidifies our excitement to partner with Vegapay in this journey,” he added.