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NBFC account aggregator startup Finvu AA has raised $2.5 Mn in its seed funding round from Varanium Fund, IIFL, DMI Sparkle Fund and M2P. 

Finvu AA plans to use the funds to strengthen its engineering and business development teams and widen product offerings.

Commenting on the fundraising, Munish Bhatia and Manoj Alandkar, cofounders of Finvu AA, said,  “The future of financial services will dramatically change with the AA ecosystem and new use cases are being developed. Excited to get support from our investors who believe in this and our part of our journey.” 

Founded in 2017 by Munish Bhatia, Manoj Alandkar and Praveen Prabhu, the Pune-based fintech startup is a RBI-licensed NBFC account aggregator. It facilitates in securing shared users’ data between financial institutions. Once a user gives consent to share his/her financial information, then the app encrypts that data while transferring it from one financial institution to another.

Finvu AA additionally helps financial institutions to collaborate on the account aggregator (AA) ecosystem and create online financial solutions for streamlining customers’ experiences, according to its website.

Some of its partners associated in its AA ecosystem are Axis Bank, Federal Bank, HDFC Bank, ICICI Bank, IndusInd Bank, IDFC First Bank, Kotak Mahindra Bank and DMI Finance, among others. 

Finvu AA claims to have processed over 750,000 consent requests and carried out more than 2 Mn API calls to date. It has 15 more partners in the pipeline and is further planning to expand the AA ecosystem by adding more than 100 partners in the next year.

In AA ecosystem, it competes with other authorised account aggregators such as CAMS FinServ, FinSec AA Solutions and National E-Governance Services Data. 

According to Emkay Global’s report, account aggregators presently record nearly 300 Mn active asset accounts in their ecosystems. As more organisations are entering the aggregator ecosystem, the count of active asset accounts is likely to increase. 

Apart from the RBI-licensed account aggregator companies, digital payment app PhonePe, data analytics startup Perfios and the US-based account aggregator company Yodlee have also got in-principle approval from the regulatory body.