Total amount raised
$18.5 Millions
Latest funding date
04/01/2020
Location
Setu has successfully raised funding through multiple rounds, including a Series A round, and was acquired by Pine Labs for $75 million. The platform offers a range of fintech solutions, including KYC, BBPS, UPI, and eSign gateway.
Keep reading to explore the intricacies of Setu's fundraising journey and the investors backing this innovative platform.
What Is Setu?
Setu, founded in 2018, is a fintech company based in Bengaluru, Karnataka, India. The company aims to accelerate economic growth by making formal finance accessible to all.
Setu offers a range of products, including KYC verification, bill payment platforms, UPI payment services, eSign gateway, and account aggregator gateway. These services provide developers with access to banking systems, facilitating financial inclusion.
The company was founded by Sahil Kini and has a workforce of 101-250 employees. Setu was acquired by Pine Labs, further enhancing its capabilities and reach in the fintech sector.
How Much Funding Has Setu Raised?
- Seed Round (April 11, 2019)
- Amount Raised: ₹245M (approximately $3.5M)
- Date: April 2019
- Lead Investors: Lightspeed India Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Establish the company, develop initial products, and build the team.
- Series A Round (April 15, 2020)
- Amount Raised: $15M
- Date: April 2020
- Lead Investors: Falcon Edge, Lightspeed Venture Partners US
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Expand the team, roll out new products, and strengthen technology infrastructure.
Total Amount Raised: $18.5M
Current Valuation: Not publicly disclosed
Key Investors
- Alpha Wave Global
- Details: Alpha Wave Global is a global alternative asset manager that invests in public and private markets. They focus on long-term value creation across various sectors.
- Investment Focus Areas: Public markets, private markets, various sectors
- Notable Investments: Ola, Delivery Hero, PolicyBazaar
- Lightspeed Venture Partners US
- Details: Lightspeed Venture Partners US is a venture capital firm that focuses on early-stage investments in the enterprise and consumer sectors. They have a strong track record of backing successful startups.
- Investment Focus Areas: Enterprise, consumer sectors, early-stage investments
- Notable Investments: Snapchat, Nest, GrubHub
- Lightspeed India Partners
- Details: Lightspeed India Partners is the Indian arm of Lightspeed Venture Partners, focusing on early and growth-stage investments in India. They aim to support technology and innovation in the region.
- Investment Focus Areas: Technology, innovation, early and growth-stage investments
- Notable Investments: OYO Rooms, Udaan, Byju's
- Bharat Inclusion Seed Fund
- Details: Bharat Inclusion Seed Fund invests in early-stage startups that are building inclusive solutions for the underserved in India. They focus on financial inclusion and technology.
- Investment Focus Areas: Financial inclusion, technology, underserved populations
- Notable Investments: Kaleidofin, Jiny, GramCover
- Falcon Edge
- Details: Falcon Edge is a global alternative asset manager that invests in public and private markets. They focus on long-term value creation across various sectors.
- Investment Focus Areas: Public markets, private markets, various sectors
- Notable Investments: Ola, Delivery Hero, Ant Financial
What's Next for Setu?
Setu stands at the cusp of significant growth opportunities, driven by the rapid expansion of India's digital payments market and the increasing demand for API-based financial services. By enabling developers to build innovative financial products, Setu can tap into a vast market of small businesses and local stores, offering them access to formal financial services like credit and payments.
As Setu continues to expand its product offerings and strengthen its technology infrastructure, future fundraising opportunities are likely to arise. The successful Series A round and backing from high-profile investors suggest that additional funding rounds could support further growth and development, potentially making Setu an attractive acquisition target for larger financial institutions or tech companies.
However, Setu may face challenges such as navigating complex financial regulations, ensuring the security and reliability of their API infrastructure, and competing with established players in the fintech market. Overcoming these hurdles will be crucial for Setu to maintain its competitive edge and achieve long-term success.
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