Wealthtech startup Stable Money has raised $5 Mn in its seed funding round led by Matrix Partners India and Lightspeed. The funding round also saw participation from Titan Capital, Mar Shot Ventures, as well as angel investors, including Kunal Bahl, Rohit Bansal, Harsha Majety,

Founded by Saurabh Jain and Harish Reddy in 2022, Stable Money offers fixed-return asset investment opportunities for retail investors, such as access to fixed deposits, debt mutual funds and bonds, along with other low-risk asset classes delivering inflation-beating results to enhance their financial prospects.

The startup wants to address the needs of market size of over 300 Mn Indians who want to invest in attractive low-risk returns. With investments starting as low as INR 1000 without the need of new bank accounts, Stable Money wants to make it inclusive and convenient for investors of all backgrounds to participate.

The startup will use the funds for senior leadership hiring, striking financial partnerships, and building technology. Moreover, it will also focus on developing a user-friendly mobile app to make it easier for users to explore the opportunities.

It is also looking to sign new partnerships to establish collaborations with over ten banks by the end of 2023, the startup said in a statement. It aims to integrate with 25 + banks and RBI-regulated institutes by the end of 2024.

With the strategic alliances, the startup wants to ensure that investors receive their investment receipts directly from partner banks and NBFCs upon booking.

“We aim to revolutionise India’s preferred asset class by reinventing Fixed Deposits. While equities and mutual funds are readily available on various platforms, we recognise the lack of opportunities for fixed-return products. Fixed Deposits have long been the top choice due to their safety from market volatility, simplicity, and rising interest rates,” Saurabh Jain and Harish Reddy, cofounders of Stable Money, said.

“At Stable Money, our mission is to provide a secure portfolio that acts as a financial safety net during challenging times for Indian investors, offering safe investment options. Our journey begins with fixed deposits, where we bring the advantage of the current five-year high-interest rates,” they added.

Stable Money is looking at an investment segment which remains one of the most preferred choices among Indian investors. A survey published by investment agency Kuvera earlier this year revealed that safety from market volatility is one of the key reasons for investors to book a fixed deposit.

Almost half of the respondents said they invested in an FD when they needed money within three years with total safety. Another 23% said they invested in an FD to park emergency funds to beat inflation.

The funding news comes at a time when the Indian startup ecosystem saw a 65% year-on-year decline in funding to $394 Mn in July 2023. As per Inc42 data, fintech startups accounted for 11.7% of total funding at $46 Mn.

There are other fintech startups such as Jiraff, Fixed, GoldenPi, which are working in the fixed income investment opportunities.