Stable Money raises $20 million in Series B funding, marking a major milestone for the Bengaluru-based wealthtech startup. Leading the round is Nandan Nilekani’s Fundamentum Partnership, alongside heavyweight backers like Aditya Birla Ventures, Lightspeed, RTP Global, and Z47. Founded in 2022, Stable Money isn’t just another fintech trying to dazzle millennials with complicated investment products. Instead, it aims squarely at India’s cautious savers who prefer the comfort of fixed returns. Their suite focuses on fixed deposits (FDs), carefully selected short-term bonds, and an innovative secured credit card backed by deposits.
With assets crossing Rs 3,000 crore and over 2 million users on board, the startup is carving out a unique space — simplifying investment for the middle class in smaller towns. These folks aren’t chasing flashy, high-risk gains but want steady, reliable returns. The company’s rapid growth—doubling monthly assets under management since rolling out short-term corporate bonds—speaks volumes about this untapped market’s potential. And they’re not stopping there; their secured credit cards and upcoming mutual fund options hint at a broader ambition.
This $20 million injection will fuel expansion into new products, deepen banking partnerships, and bolster their reach in tier-2 and tier-3 cities. With a keen focus on trust and simplicity, Stable Money is positioning itself as a fintech lifeline for India’s underserved savers, growing its war chest to a total of $40 million so far.
1. Introduction to Stable Money and Its Funding Milestone
Stable Money raises $20M in a Series B round led by Fundamentum Partnership — a bold statement from a young startup only three years old. Following a $15 million Series A less than a year prior, this round isn’t just about money; it signals investor belief in a fresh approach to wealth management tailored for India’s cautious savers.
The involvement of stalwarts like Nandan Nilekani’s Fundamentum Partnership and others like Aditya Birla Ventures and Lightspeed shows that Stable Money’s growth isn’t accidental. The capital boost aims to broaden product lines, strengthen bank ties, and deepen its reach beyond urban centers.
Stable Money’s core mission stands out in a crowded fintech space: it targets deposit-heavy middle-class Indians who value predictability over flashy returns. Managing assets worth over Rs 3,000 crore and counting more than 20 lakh customers, the startup rides the wave of growing demand for safe, digital-first savings options.
2. Business Model and Revenue Streams of Stable Money
2.1 Working Model
Stable Money’s platform is refreshing in its simplicity. It offers fixed-income products like FDs, curated short-term bonds, and secured credit cards — all accessible without the hassle of opening a savings account. The standout is the quick, seamless user experience: instant withdrawals, trial FDs to build confidence, and same-day liquidity for bonds.
Operating under a license from the Bombay Stock Exchange as an Online Bond Platform Provider, Stable Money’s ability to offer bonds with tenors as short as two months is a game changer. Customers can cycle investments fast, building trust as they go. The startup zooms in on smaller towns where fintech penetration is shallow and savers traditionally rely on bank FDs. It fills a genuine gap.
2.2 Revenue Model
Revenue streams come from multiple channels. Stable Money earns commissions on products and shares interest spreads on its fixed-income offerings. Its secured credit card product opens new revenue avenues through transaction fees, yet keeps risks low since deposits back the cards.
What’s clever is the bundling approach. By offering configurable baskets mixing FDs, bonds, and mutual funds, they encourage customers to diversify within the ecosystem — which means higher assets under management and more fees.
Partnering with banks and NBFCs adds referral fees and co-branded product revenues. The strategy to scale partnerships is smart, helping Stable Money fortify its market presence while widening revenue sources.
3. Founders and Leadership Background
Saurabh Jain and Harish Reddy, the duo behind Stable Money, bring deep fintech and mutual fund experience. Jain, formerly CEO of Navi Mutual Fund, understands Indian savers’ psyche inside out. Reddy’s background at Navi’s early stages rounds out a leadership team seasoned in blending technology with finance.
Their vision wasn’t to reinvent the wheel but to digitalize a familiar savings pattern. They knew Indian savers favored simplicity and safety. So, the startup’s strategy is gradual: start with what users know — fixed deposits — and introduce bonds, mutual funds, and credit cards in a trust-building arc.
4. Products and Services
4.1 Fixed Deposits and Bonds
Stable Money leans heavily on fixed deposits and curated short-term bonds — but with a twist. Offering bonds with durations as short as two months is rare in India, allowing users to invest and exit swiftly. Through its BSE license, Stable Money ensures regulatory rigor while democratizing access to corporate bonds.
4.2 Secured Credit Cards
Here’s a product that speaks volumes about Stable Money’s understanding of the credit gap in smaller towns: secured credit cards backed by FDs. Many in tier-2 and tier-3 cities struggle with credit history. These cards offer a way in, making credit more inclusive. Issuing over 3,200 cards in a month shows clear demand.
4.3 Upcoming Products
Stable Money isn’t resting on its laurels. Loan-against-FD products are slated for launch soon, alongside a pilot for mutual funds like debt, liquid, arbitrage, and gold funds. This expansion reflects a balanced approach to diversification without sacrificing the low-risk ethos.
4.4 Distribution Strategy
Recognizing that many users aren’t digital natives, Stable Money is testing a physical distribution strategy — small teams are hitting the streets of select cities, onboarding and educating savers in person. This hybrid model is a breath of fresh air in a world dominated by purely digital platforms targeting metro millennials.
5. Problems Solved by Stable Money
India’s saving culture is deeply risk-averse, centered on fixed deposits that often yield meager returns. Many savers want alternatives that promise safety with a bit more reward. Stable Money taps into this gap with low-risk, predictable products accessible digitally.
Moreover, credit access in smaller towns remains challenging due to scant credit histories. Stable Money’s secured credit cards directly address this, creating new credit pathways. The platform’s simplicity, instant liquidity, and familiar product mix lower entry barriers for first-time investors.
In short, Stable Money bridges trust deficits, limited product choices, and digital inaccessibility — especially for India’s middle-class savers outside the metros.
6. Industry Growth Trends and Market Context
India’s fintech and wealthtech arenas are blossoming, fueled by surging digital penetration and rising financial literacy. While bank fixed deposits have long dominated fixed-income investing, newer options like curated bonds and debt mutual funds are gaining traction.
Regulatory nudges from the RBI have opened doors for digital lenders and investment platforms. Yet, most startups chase urban tech-savvy users. Stable Money’s focus on tier-2 and tier-3 cities aligns perfectly with the fintech drive toward deeper financial inclusion.
Risk aversion has grown, especially post-pandemic. Savers want predictable, flexible returns — a niche that Stable Money is well-placed to serve.
7. Competitor Landscape
On the wealthtech map, Stable Money faces competitors like Groww, Zerodha, and ET Money. But these primarily cater to urban millennials and lean toward advisory-driven investments. Their product focus is on mutual funds and bonds but often lacks the bundled, DIY simplicity Stable Money offers.
Traditional banks and NBFCs also compete indirectly, trusted but slower to innovate or penetrate smaller towns digitally. Stable Money’s physical outreach and deposit-heavy focus create a sweet spot where competition is surprisingly thin.
8. The Journey and Background Story of Stable Money
Born out of industry veterans’ frustration with complex investment options, Stable Money was founded in 2022 by Saurabh Jain and Harish Reddy. Drawing from their Navi days, they spotted a yawning gap for digital but simple fixed-income products for conservative savers.
The startup started with familiar fixed deposits and bonds, then quickly proved the market’s readiness by doubling assets under management soon after launching short-term bonds. It has steadily expanded its offerings, carefully balancing innovation with user trust.
In under three years, Stable Money has garnered serious investor attention, culminating in a $20 million Series B led by Fundamentum. Their rise mirrors India’s fintech evolution — moving beyond urban metros to a broader, underserved audience.
9. Learning for Startups and Entrepreneurs
Stable Money’s story teaches several hard-earned lessons:
- Truly knowing your audience pays off. Understanding Indian savers’ caution helped build products that don’t scare users away.
- Take it slow. Starting simple with fixed deposits before layering bonds and credit products helps build trust.
- Digital alone isn’t enough in India’s varied landscape. Mixing online ease with boots-on-the-ground onboarding creates genuine inclusion.
- Align funding partners with your vision. Having investors who believe in your market and model accelerates growth without mission drift.
Conclusion
Stable Money raises $20M in a Series B funding round, reinforcing its role as a trailblazer for India’s conservative savers. By marrying traditional fixed deposits, innovative short-term bonds, and secured credit cards, it’s rewriting the rules of digital savings for the often-overlooked middle class in smaller cities.
This capital will power product expansion, strengthen banking and NBFC collaborations, and boost a hybrid physical-digital distribution approach. Supported by experienced founders and credible investors, Stable Money stands ready to revolutionize how Indian savers approach low-risk investments — with trust, simplicity, and control at its heart.
The Startups News
TheStartupsNews.com thrives on stories like Stable Money’s — shining light on fintech startups innovating beyond big cities and urban elites. India’s wealthtech sector is evolving rapidly, and TheStartupsNews.com remains a trusted hub for investors, entrepreneurs, and enthusiasts tracking the next wave of funding rounds, disruptive models, and market expansions. Stable Money’s journey offers a valuable glimpse into the kind of startup innovation shaping India’s financial future.