Neobanking startup LXME bagged seed funding of $1.2 million (approximately 10 crore INR). The funding was led by Kalaari Capital through its CXXO initiative.
Other investors include Yash Kela from Singularity Ventures, Amaya Ventures, Capri Holdings, Aditi Kothari from DSP Asset Managers, as well as Vivek Vig, Sumit Jalan, and Avinash Pahuja. This funding will support LXME in expanding its services tailored specifically for women.
LXME Bags Seed Funding From Kalaari Capital
LXME, a startup founded by Harvard Business School graduate Priti Rathi Gupta in Mumbai, has secured $1.2 million in its first round of funding. The funding will help LXME expand its market presence, introduce new products, and enhance its technology and services. Priti Rathi Gupta expressed her excitement about reaching this milestone and shared plans to strengthen LXME’s brand and acquire more users across India.
The platform operates like a digital bank, offering services such as investing, insurance, financial planning tools, and educational resources. LXME aims to enhance financial literacy among women, helping them make informed financial decisions. It serves a community of over 400,000 women, with over 100,000 app downloads and over 30 million content views. LXME plans to grow its user base to over 10 million women in five years.
Kalaari Capital Supports LXME’s Mission for Women
Vani Kola, managing director at Kalaari Capital, highlighted that LXME’s commitment to enhancing financial literacy and inclusion for women aligns well with Kalaari’s values and its CXXO initiative. Launched in 2021, CXXO aims to empower and invest in women entrepreneurs. It offers support through funding, community building, and coaching to female founder-CEOs like those leading LXME.
LXME Aims to Empower Women in Finance
According to the LXME and Women Money Power 2022 report, out of 560 million women with bank accounts, only 8 million are investors, and just 1% invest independently. LXME addresses challenges women face in growing wealth, accessing credit, securing funding for ventures, and lack of health insurance (65%). LXME aims to bridge these gaps by providing women with a transformative financial platform.
Digital lending has become a profitable business for India’s fintech companies. The ‘State of Indian Fintech Report Q4 2023’ by Inc42 predicts the lending tech market in India could grow to $1.3 trillion by 2030.
Gender Disparity in Startup Funding
According to a report by the Economic Times on May 16, funding for startups led by women declined to 9.3% in 2023 from 14.7% in 2021. Female founders in India received less than 10% of the total funding for the year, trailing behind Europe and the US. This trend highlights a widening gender gap in funding, as noted in the 2023 annual report by WinPe, an organization promoting gender diversity in private equity.
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