A Series A funding round led by Prudent Investment Managers has raised $2.5 million for The Money Club. The round also saw participation from HNIs of Singapore and Dubai, 1Crowd AIF, and its existing investors, including Venture Catalysts, LetsVenture, Z21 Ventures, and Supermorepheus.

The company had raised $2.54 million from its existing investors.

The Money Club said in a press release that the fresh funds will be deployed toward developing financial inclusion solutions, expanding technological capabilities, and providing financial empowerment to underserved populations.

Manuraj Jain's, the Money Club was launched in 2018 and offers its new-to-credit customers instant cash without any paper work. 400 million lower middle-class Indians face significant barriers to accessing traditional financial products, which is why the platform is designed.

Users from across the country can rotate their savings digitally and get cash when they need it, according to the Noida firm. It runs entirely on UPI rails and collects valuable behavioral data, which enables a dynamic, real-time underwriting model that creates accurate credit profiles using more than 30 unique attributes per transaction. The previously non-existent digital footprint of nano-entrepreneurs is significantly enhanced by this approach, which provides 20 times more data than traditional credit models.

Over 7 lakh users, mostly new to credit, have rotated approximately Rs 350 crore of their savings to date and generated a digital footprint of over 4.3 million transactions, according to the Money Club. A 98% user retention rate is achieved by the platform. There are other companies in this space that may compete directly or indirectly with it.