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Y Combinator backed fintech startup Bueno Finance on Tuesday announced that it has raised $3 million in its seed round from a slew of investors such as Goat Capital, JAM Fund, Olive Tree Capital, Good Water Capital and others from Silicon Valley. The marquee Indian Angel investors Kunal Shah, Anupam Mittal have also participated in the round, the company announced.

The Gurgaon-based fintech startup plans to use the funds to expand the product offerings and strengthen its team across engineering, product, sales, credit and operations, to support its accelerated growth plans.

Launched in October 2019 by Saurav Gandhi and Sandeep Arora, Bueno Finance is credit-focused neobank for India’s middle and lower-middle income segment.

Speaking about the announcement Saurav Gandhi, Co-Founder and CEO, Bueno Finance said,

“Only 10 percent of the formal credit (mostly secured) goes to 45 percent households of India earning approximately $200-$400 a month. Bueno Finance wants to democratise credit along with other financial services to this massive segment.”

“We are growing very rapidly and plan to acquire multiple partners for customer acquisition. Bueno is partnering with quality employers to fulfill its mission, which ensures a win-win arrangement for the customer and the employer”, he added.

The fintech startup was also part of the winter 2021 batch of Y-Combinator.

Commenting on the investment, Justin Kan, General Partner of Goat Capital added,

“We are excited to be a small and early part of the Bueno Finance journey. As children of middle class families, the vision of financial inclusion and building credit for a better future resonated with us deeply. Saurav and Sandeep are the type of humble and mission driven founders we love to back.”

“Bueno finance is accelerating the emergence of the massive middle class in India. I am impressed by Saurav and Sandeep’s depth of understanding of the market dynamics.”, said Justin Mateen (Co-Founder, Tinder).

Justin heads JAM Fund, and has deployed 100 million in the last year alone. He was ranked the number 1 seed investor in the US and has been an early investor in 18 unicorns.