Stable Money raises $25 million led by Peak XV, targets tier-2 expansion

Stable Money co-founder Saurabh Jain said Peak XV Partners led the entire equity round with an investment of $20 million. Mint. Existing backers Z47, RTP Global and Fundamentum Partnership, co-founded by Infosys Ltd chairman Nandan Nilekani, also participated. The latest addition brings the company’s total capital raised over four rounds to $65 million.

The capital will fund expansion into India’s tier-2 and tier-3 cities, where the company is seeing demand from customers opting for assisted distribution for financial products. Stable Money currently operates offline touchpoints in Kolkata, Delhi and Pune and plans to expand this physical network along with increased marketing spend.

“We are specifically directing these funds towards growth in tier 2 and tier 3 markets,” Jain said. “This includes a significant advancement in marketing and building a stronger offline presence to serve customers who prefer physical interactions for financial products.”

The fundraising comes less than a year after the company’s Series B round, in which it raised $20 million at a $130 million valuation. This round saw participation from Z47, RTP Global, Lightspeed and Aditya Birla Ventures, and the funds were earmarked to expand Stable Money’s suite of wealth products and accelerate customer acquisition.

Jain said the amount raised from the previous fundraising campaign has not yet been fully utilized Mint. Funds from the latest raise will be distributed along with remaining cash from the Series B round.

Co-founders Jain and Harish Reddy held a 36.7% stake in Stable Money at the end of the previous funding round, according to data from intelligence firm Tracxn. When asked, Jain did not specify how much his and Reddy’s shares had decreased after the pre-Series C round.

Stable Money combines fixed income products such as bank deposits and debt instruments, positioning itself around predictable returns rather than market-driven fluctuations. Jain said the company has no immediate plans to move into equity-linked products, with a tight focus on fixed income.

Founded in 2022, the platform has built a user base of more than 4 million investors and ₹5,000 crore investment.

The company operates in a growing segment of fintech platforms focused on fixed income and bond products, alongside peers such as Wint Wealth, Jiraaf and InCred Money.

For FY25, Stable Money’s revenue from operations was as follows: ₹104 crore, total losses ₹45 crore, according to Tracxn data. There was also an EBITDA loss ₹45 crore. Revenues rose sharply on a year-on-year basis, but losses widened as FY24 figures were not immediately available.

Now the startup is evaluating new asset classes that suit its risk profile. Real estate investment trusts (Reits) are being examined as a potential addition to the platform’s offerings.

“We don’t want to get into equity products anytime soon,” Jain said. “However, we are actively considering Reits as a new product line as they align with our core stability proposition.”

The company will also use the new capital to hire staff across technology and business functions. Management has stated that growth will remain organic and has ruled out acquisitions or inorganic expansion strategies in the near term.

“An IPO is the ultimate goal that we anticipate achieving after three to five years,” Jain said.