Instant loan provider Yenmo raises $500,000 from Y Combinator to revolutionise lending in India

Instant loan provider Yenmo raises $500,000 from Y Combinator to revolutionise lending in India

Yenmo, a FinTech startup providing instant loans against mutual funds, has successfully completed its latest funding round, securing $500,000 from the Silicon Valley-based startup accelerator, Y Combinator, according to a report from Business Standard.

Specialising in offering loans against mutual funds and stocks, Yenmo empowers Indian investors by enabling them to borrow at a flat interest rate of 10.5% in less than five minutes. Investors can easily view all their investments in real-time, choose the assets they wish to leverage, and receive funds directly into their bank accounts. This innovative approach allows users to meet their immediate financial needs without disrupting the long-term growth of their investments.

The funds from this recent round are expected to be pivotal for Yenmo’s plans to broaden its product offering. According to Yenmo CEO and Co-founder Ashutosh Purohit, the company is set to introduce a range of lending options previously available only to high-net-worth individuals to every Indian consumer. This includes expanding its current offerings to encompass loans against stocks, insurance, digital gold, and even land.

Ashutosh Purohit expressed his concern over the $30bn redeemed annually by retail investors from equity mutual funds for short-term needs. He advocates for Yenmo’s solution, emphasising that borrowing against mutual funds is a smarter strategy to preserve and grow investments. This method, he argues, not only sustains the investment but could also result in increased financial returns for the investors.

In addition to its primary services, Yenmo is enhancing its platform with a full-stack API solution. This allows other companies to seamlessly integrate loans against mutual funds into their products, further extending Yenmo’s impact on the financial technology landscape.

Yenmo CEO Ashutosh Purohit said, “We aim to introduce a suite of lending options that were previously accessible only to high net worth individuals, now to every Indian consumer.”

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