AutoMony, a startup focussed on financing new and used vehicles, has raised $3 million (approximately Rs 22.28 crore at current exchange rates) in its Series A funding round from a clutch of investors, including Asha Impact and Sundaram Finance.
Some high net-worth individual investors also participated in this investment exercise, AutoMony said in a statement.
Rishab Bafna, co-founder and managing director at AutoMony, said that the firm will use the funds to expand to newer geographies and enhance its technological infrastructure.
It is also looking to increase its assets under management (AUM) to over Rs 500 crore from the current Rs 70 crore in the next two years. Audience segments it is targeting include first-time truck owners and operators of small fleets.
“Given AutoMony’s deep dealership networks and scalable tech-enabled model, we believe AutoMony is well placed to provide first-time financing to small operators and drivers with inadequate credit histories,” Vikram Gandhi, co-founder at Asha Impact, said.
Mumbai-based AutoMony, operated by RBSG Capital Pvt. Ltd, was founded in 2018 and was set up by Bafna and Shirish Godbole. Bafna has a background in computer science and has worked with firms such as Barclays and New Delta Capital.
Godbole, meanwhile, has over 25 years of experience in banking, financial services, and insurance (BFSI) space and has held positions at companies such as Morgan Stanley and Goldman Sachs.
It is among several non-banking financial companies that have raised money in recent months. Most of these firms have raised capital to grow their loan books and expand their geographical presence. Money into these NBFCs has poured in from both domestic and foreign investors.
Last month, for example, micro, small and medium enterprises (MSMEs)-focussed Prayaan Capital Pvt. Ltd raised $1.2 million (around Rs 8.61 crore) in its seed funding round. The round was led by Accion Venture Lab, the seed-stage investment arm of Accion International.
In September last year, digital lending platform LoanTap raised $12 million (around Rs 85.08 crore) in a Series B investment round led by Avaana Capital, an Indian venture-growth investment firm.
That month, Flipkart co-founder Sachin Bansal acquired Chaitanya Rural Intermediation Development Services Pvt. Ltd by investing Rs 739 crore (about $104 million) in the company and taking charge as its CEO.
