Ex-Paytm Executive Launches New Fintech Startup

A Former Paytm Executive Launches New Financial Services Venture

The leader responsible for establishing Paytm’s financial services division, a key component of India’s most highly valued startup, is embarking on a similar endeavor.

Pravin Jadhav, previously the chief executive officer of Paytm Money, announced on Thursday the creation of his own startup, Raise Financial Services.

Focusing on an Underserved Market

Jadhav, who oversaw the growth of Paytm Money to over 6 million customers, is now directing his efforts toward a distinct demographic.

A significant portion of the Indian population – hundreds of millions of individuals – currently lack access to essential financial services. This includes absence of credit cards, difficulty securing loans from banks, and a lack of participation in insurance or investment opportunities like mutual funds and stocks.

Numerous companies and startups within India are currently working to address this gap by developing underwriting technologies. These technologies utilize alternative data sources to assess an applicant’s creditworthiness. This is a challenging and resource-intensive undertaking, reliant on inherent uncertainties and optimistic projections.

In a recent interview, Jadhav explained that Raise Financial Services will primarily target customers in metropolitan areas, Tier 1, and Tier 2 cities. “These individuals desire financial products and possess financial literacy, yet they are not receiving the level of service they deserve,” he stated.

A Comprehensive Suite of Financial Products

The new venture will provide a range of financial products, encompassing investing, financing, insurance, wealth management, and payment solutions. “We will not be directly involved in traditional banking, as that area is primarily focused on infrastructure,” Jadhav clarified.

“Our core strategy centers on delivering exceptional products currently unavailable in the market. Furthermore, we will prioritize technology-driven distribution channels. Finally, we aim to significantly improve the quality of customer service, which is currently lacking across the industry,” he explained. “Our long-term vision is to integrate these elements seamlessly.”

Seed Funding and Key Investors

Jadhav also revealed the completion of a seed funding round. While the specific amount remains undisclosed, he highlighted the participation of several prominent investors, including: Kunal Shah (Cred), Kalyan Krishnamurthy (Flipkart), Amod Malviya and Sujeet Kumar (Udaan), Sameer Nigam and Rahul Chari (PhonePe), Amrish Rau (Pine Labs, Citrus Pay), Sandeep Tandon (Freecharge), Jitendra Gupta (Jupiter), Girish Mathrubootham (Freshworks), Nischal Shetty (WazirX), Kuldeep Dhankar (Clevertap), Sreevatsa Prabhakar (Servify) and Amit Bhor (Walnut).

Jadhav is also contributing personal investment, and Mirae Asset Venture is leading the funding round. Additional participation comes from Multi-Act Private Equity, Blume Ventures (through its Founder’s Fund), and U.S.-based early-stage investor Social Leverage, marking their first investment within India.

Ashish Dave, CEO of Mirae Asset Venture’s Indian operations, shared that his decision to engage with Jadhav was influenced by his insights during various Clubhouse discussions, even prior to their formal introduction.

Launch Timeline and Competitive Landscape

Jadhav anticipates the launch of the startup’s initial product before the year’s end. Sources indicate an even earlier release is planned. Raise Financial Services’ offerings are expected to share similarities with those of SoFi and Goldman Sachs’ Marcus.