Digital Investment Platform GrowFix Raises $2 Million from a Clutch of Investors
Digital investment platform GrowFix has raised $2 million in seed funding from Rainmatter Capital, Zerodha's fund along with participation from Better Capital. 20 individual investors also participated in the round, including Kunal Shah, Founder, CRED; Lalit Kehsre, Co-founder, Groww; Abhinav Jain & Kalpak Chhajed, Co-founders, Shop101; Devashish Chakravarty, Quez; and I Unnikrishnan, Yogloans among others.
Founded in 2020 by Abhik Patel, Ajinkya Kulkarni, Anshul Gupta and Shashank Chimaladari, GrowFix is an alternate debt assets platform for retail investors to invest in high-interest rate, asset-backed fixed income products. The company had launched its first asset in December 2020. According to a company statement the new capital will be utilized by GrowFix to develop technology to underwrite risks, educate investors about new-generation debt assets.
Ajinkya Kulkarni, Co-founder, GrowFix, said: “Investors are actively looking for high-interest rate products for reasonable risk. Given the scenario where FD and debt mutual fund returns have dropped considerably, there is a huge vacuum for products that give two to three percent higher returns than FD and are less volatile than equities." He believes that GrowFix aims to address this massive market opportunity by creating high-interest rate products for such investors.
Speaking about the investment Nithin Kamath, Founder & CEO, Zerodha, said, “We just have about 2.5 crore Indians who invest in stocks and mutual funds and this hasn't grown much at all. Most Indians today invest in Illiquid assets like gold jewelry and real estate, which are hard to sell in times of emergencies. And then there are bank FDs that don't yield much." He believes that easy to understand, FD like, and safe asset-backed products created by GrowFix can be a great stepping stone to bring in a lot of first-time retail investors into the capital markets. “The products (created by GrowFix) are much easier to understand than debt mutual funds and also have attractive yields compared to bank fixed deposits, which is what most retail investors need today,” he added.
Founded in 2020 by Abhik Patel, Ajinkya Kulkarni, Anshul Gupta and Shashank Chimaladari, GrowFix is an alternate debt assets platform for retail investors to invest in high-interest rate, asset-backed fixed income products. The company had launched its first asset in December 2020. According to a company statement the new capital will be utilized by GrowFix to develop technology to underwrite risks, educate investors about new-generation debt assets.
Ajinkya Kulkarni, Co-founder, GrowFix, said: “Investors are actively looking for high-interest rate products for reasonable risk. Given the scenario where FD and debt mutual fund returns have dropped considerably, there is a huge vacuum for products that give two to three percent higher returns than FD and are less volatile than equities." He believes that GrowFix aims to address this massive market opportunity by creating high-interest rate products for such investors.
Speaking about the investment Nithin Kamath, Founder & CEO, Zerodha, said, “We just have about 2.5 crore Indians who invest in stocks and mutual funds and this hasn't grown much at all. Most Indians today invest in Illiquid assets like gold jewelry and real estate, which are hard to sell in times of emergencies. And then there are bank FDs that don't yield much." He believes that easy to understand, FD like, and safe asset-backed products created by GrowFix can be a great stepping stone to bring in a lot of first-time retail investors into the capital markets. “The products (created by GrowFix) are much easier to understand than debt mutual funds and also have attractive yields compared to bank fixed deposits, which is what most retail investors need today,” he added.
