B2B fintech startup Vegapay raises $5.5 million from Elevation Capital

economictimes.indiatimes.com:

fintech startup Vegapay has raised $5.5 million in an equity funding round led by Elevation Capital, with participation from existing investor Eximius Ventures.
It had raised $1.1 million in its first institutional funding round in 2023 led by Eximius.

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The newly raised funds will be used to enhance Vegapay’s product suite, focusing on product development and regulatory compliance. Also, a significant portion of the funds will be allocated to hiring software developers, designers and engineers, the company said.

“In the credit card space, there are legacy companies, but most of the banks are not liking it for obvious reasons, and therefore new-age players like us are solving the core pain for a bank to offer credit cards or any credit products,” Gaurav Mittal, cofounder and CEO of Vegapay, told ET. The traditional credit systems used by financial institutions often impede innovation due to extensive third-party integrations and lengthy development cycles, he added.

Vegapay’s 55-member team aims to help financial institutions streamline these processes to one or two days. It provides a platform that automates solutions such as card management systems, Unified Payments Interface (UPI) on credit lines, UPI on credit cards, and standalone