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Yenmo Secures $500K Funding Led by US-Based YC for Loans Against Mutual Funds

Updated: Mar 26

Yenmo, a fintech platform, has successfully raised $500,000 in a seed funding round spearheaded by Y Combinator, a distinguished startup accelerator based in the US. The company specializes in offering instant loans against mutual funds, aiming to transform how Indian consumers access funds without the need to liquidate their investments.


Startup News of Yenmo Funding Round

The co-founders, Ashutosh Purohit and Aryan Agarwal, have developed Yenmo to enable users to borrow against their mutual fund investments at a competitive flat interest rate of 10.5%. Through the platform, investors can monitor all their investments in real-time, select the assets they want to borrow against, and receive the loan amount directly into their bank accounts.


What sets Yenmo apart is its approach to loan approval. Instead of conducting a credit score check, the platform relies on users' mutual fund investments as collateral.


Yenmo's primary objective is to democratize access to lending options that were traditionally reserved for high-net-worth individuals. The platform's unique model allows users to pay only the interest during the loan period, with the flexibility to repay the principal amount at their convenience. This strategy not only preserves the integrity of the investments but also fosters the long-term growth of the users' funds.


According to Ashutosh Purohit, CEO and Co-founder of Yenmo, the platform addresses the prevalent issue of retail investors redeeming approximately $30 billion from equity mutual funds annually to meet short-term financial needs. Yenmo's solution offers a smarter alternative to liquidation by providing access to funds while safeguarding the investments for long-term growth.


With the recent funding, Yenmo plans to diversify its lending options to include stocks, insurance, digital gold, and land. This expansion aligns with the company's broader vision of introducing a comprehensive suite of lending products tailored to the diverse needs of Indian consumers. By leveraging their investments for immediate financial requirements without compromising long-term growth, Yenmo aims to empower more individuals to achieve their financial goals.


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