Fintech startup Fundly.ai raised $3 million in a seed funding round led by Accel where Multiply Ventures and angel investors also participated. Fundly.ai is a pharma supply chain startup that services retailers and distributors by financially equipping them to manage cash flows and increase margins.
Currently, the company operates in southern and western Indian markets, and plans to focus on growing in its existing markets, according to Fundly.ai founder Amit Chawla.
Chawla and Shreeram Ramanathan founded Fundly.ai, which has a presence across nine cities in India and has been bootstrapped since 2021. Prior to founding the company, the duo worked at InCred in 2018 and 2019. Fundly.ai has disbursed funds worth Rs 140 crore ($17.1 million) to over 2,000 retailers and more than 30 distributors across nine cities.
According to Chawla, 55% of Fundly.ai’s business comes from Tamil Nadu, about 30-35% from Maharashtra, and the rest from Andhra Pradesh. With the new funding, the startup plans to deepen engagement with existing customers, expand into new geographies, build technology, and work on newer product offerings.
Accel investor Sarthak Singh said that with financial services serving as an entry point, Fundly.ai plans to bring product innovations to retailers, distributors, and other stakeholders. “Amit and Shree bring a wealth of experience from their deep lending background. Leveraging this experience, they have been able to identify the gaps and opportunities that exist in the pharma supply chain,” Singh added.
The funding round comes amid a surge of investment activity in India’s fintech sector, which has been driven by the Covid-19 pandemic and the resulting shift toward digital payments and transactions. According to a recent report by KPMG, India’s fintech industry is expected to reach a valuation of $150-160 billion by 2025, up from $50-60 billion in 2020.
