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GrowFix raises $2 million in seed funding from Zerodha, others

Bengaluru: GrowFix, a digital investment platform for Securitised Debt Instruments (SDIs), has raised $2 million in seed funding, led by Zerodha’s fintech investment fund Rainmatter, and participation from Better Capital.

A group of more than 20 entrepreneurs, including Cred’s Kunal Shah, Paytm Money’s former CEO Praveen Jadhav, PayU’s Nitin Gupta and India Gold’s Deepak Abbot, also participated in the funding round.



GrowFix offers high neta-worth and retail investors asset-backed fixed income products that provide higher returns than fixed deposits. The company was founded in January last year by Ajinkya Kulkarni, Abhik Patel, Shashank Chimaladari and Anshul Gupta.

“Given the scenario where FD and debt mutual fund returns have dropped considerably, there is a huge vacuum for products that give 2-3% higher returns than FD and are less volatile than equities,” Kulkarni said. The funding will go towards developing the technology to underwrite risks and educate investors about investing in debt assets and the attendant risks, he added.

The company’s first asset—GrowFix Gold—which was launched in December, had a pool of gold-backed loans where retail investors would invest and get a 11% fixed interest rate.

In a span of four weeks, the company said 50% of the asset had been subscribed.

“We think easy-to-understand and safe asset-backed products created by Growfix can be a great stepping-stone to bring in a lot of first-time retail investors into the capital markets,” said Nithin Kamath, co-founder and CEO of Zerodha. “The products are much easier to understand than debt mutual funds and also have attractive yields compared to bank fixed deposits.”

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