Early-stage investors’ platform Mumbai Angels Network has reportedly invested an undisclosed amount in cloud-based neobank Nemo.
The fresh cash injection will be used to accelerate its product development, boost hiring and expand customer acquisition, Business Standard reported.
Spawned by IIM Ahmedabad alumni Ashish Deswal and Jeevan Gopisetty, Hyderabad-based Nemo aims to simplify the financial aspect for Indian SMEs and provide them with the financial tools, resources and networks that large corporations have access to.
Nemo is currently piloting with a small cohort of selected customers and plans to scale up over the next 12-18 months.
Commenting on the funding, Gopisetty said, “While user experience across all other sectors such as e-commerce, logistics, food delivery, education, has seen disruptions, the banking sector has been relatively slow in adopting technological advancements and continues to follow a traditional approach. We are now witnessing a growing demand from business customers of banks for a better banking experience that is on par with that of other industries.”
He added that with the rise in digitalisation, the next decade will be “a golden period for neobanks.” And that’s what Nemo aims to capitalise on.
According to Mumbai Angels Network CEO Nandini Mansinghka, SMEs tend to face more challenges when it comes to access to banking and finance compared to bigger companies and FinTech services to help them is the need of the hour. She continued, “As the FinTech industry grows exponentially in their offerings and footprint, our investment will help a fast-growing platform such as Nemo scale and expand to empower the country’s MSMEs with the required access to financial services.”
Mumbai Angels has a track record of funding various success stories. After the angel investor platform witnessed around 36 exits including startups like Purplle, Unocoin, Exotel and Mcaffiene last year, it is looking to fund 50-60 new startups this year.
Copyright © 2021 FinTech Global