Bengaluru-based Jiraaf, a startup for fixed-income investments, recently secured $8.7 million in series B funding, led by Accel and Harmony Partners, with participation from Capital A and angel investors.
Since its launch in September 2021, Jiraaf has raised a total of $16 million.
“We will be using this money to mainly build our team, improve customer service across categories of business and also for originating more customers,” said cofounder Saurav Ghosh.
The company limited its series B round to under $9 million due to the challenging funding climate, he added.
Jiraaf operates a platform enabling retail investors to buy corporate debt, yielding an average of 12.5%. This appeals to investors who have previously put their money into conventional options such as fixed deposits, mutual funds, and the stock market, as it allows them to diversify their investments by acquiring corporate bonds.
Investors typically commit around Rs 1 lakh to these opportunities, ensuring that the platform caters to individuals with the capacity to invest more significant amounts.
Jiraaf provides access to debt issuances from various companies, including Caratlane, Bizongo, and Zetwerk, as well as established corporations like Edelweiss, Jindal Power, and Zuari International, among others.
“We have already applied for the online bond platform provider licence from the market regulator, and we hope to secure the licence very soon,” Ghosh said.
SEBI has made it a requirement for all online bond issuance platforms to obtain a license from the regulatory body.
The startup has effectively channelled approximately Rs 2,400 crore in capital via its platform and boasts around 150,000 registered users, including a segment of active investors.
In the coming two years, the company plans to channel Rs 10,000 crore in capital. Currently, it maintains a disbursal rate of Rs 200 crore per month, with an ambition to increase this to Rs 500 crore within the following year.
