Vegapay, a fintech startup specializing in B2B services, has successfully secured $5.5 million in an equity funding round spearheaded by Elevation Capital, with contributions from previous investor Eximius Ventures. This latest financial boost follows an initial $1.1 million raised in 2023 from Eximius. The startup intends to utilize the new capital for product development, regulatory compliance, and expanding its team with new software developers, designers, and engineers.

Gaurav Mittal, co-founder and CEO of Vegapay, highlighted the challenges faced by traditional financial institutions in offering innovative credit solutions due to outdated systems and the lengthy integration of third-party services. Vegapay aims to simplify and speed up these processes, reducing the development cycle to a matter of days. The startup offers a range of automated solutions, including card management, UPI on credit lines, and systems for loan collection and co-lending management.

Established in 2022 by Mittal, Himanshu Agrawal, Puneet Sharma, and Abhinav Garg, Vegapay collaborates with various financial entities and fintech firms to enhance the distribution of cards and lending products. The company is actively working with over six banks and is set to launch new credit card products and UPI credit solutions shortly.

Looking ahead, Vegapay is targeting international expansion, particularly in Southeast Asia and the Middle East, with a goal to achieve an annual recurring revenue of $2 million and to issue over 1 million cards by the end of next year. Vaas Bhaskar from Elevation Capital expressed confidence in Vegapay's potential to transform the credit system landscape for financial institutions, paralleling developments seen in other fintech innovators like Zeta, which also recently introduced a new stack for UPI credit transactions.