By Abhay Ray 
Introduction
DSP Group has acquired Bengaluru-based fintech startup Volt Money that offers loans against mutual funds. The fintech startup looks at this acquisition as a growth catalyst for its platform, with both DSP and Volt Money recognising significant potential in the mutual fund space, sources close to the matter told Inc42. “DSP Group was shareholder of Volt Money and was privy to the company’s numbers, so they proposed the acquisition deal,” the source said.
Background of Volt Money
Founded in 2022 Volt Money was created by Lalit Bihani, Bharat Lamba, and Ankit Agarwal, who raised $1.5 million in a seed round from Titan Capital and All In Capital. Very much included in the funding round are some notable investors such as Kunal Shah of Cred and Aditi Kothari of DSP Adiko Holdings. However, while it began with some initial success, sources have indicated that this meant that Volt Money struggled to secure follow-on funding, which in turn affected investor returns. But since it happened, the founders see it as a reasonable outcome.
DSP and Volt Money Details of the Acquisition
The deal was finalized last month following discussions between DSP and Volt Money, which had been ongoing over a few months by that time. With the acquisition likely to present a smoother integrated services / equity expertise, key team members from Volt Money will join DSP. In Volt Money, the lenders as well as some distribution partners lend up to ₹ 25,000 to ₹ 1 crore with interest rates ranging from 9% to 35%. Flexible repayment options are offered by the platform, which is also a great choice for borrowers.
Impact of Acquisition
The fact that DSP is acquiring this fintech is indicative of the consolidation in the fintech industry, as well as financial institutions are looking to strengthen their digital capabilities by buying innovative startups. Volt Money’s platform integration with DSP’s resources is expected to form a robust offering for customers looking for instant loans on their mutual fund investments.
Volt Money competes with other players in the loans-against-mutual-funds space, including Quicklends and DhanLap. Notably, fintech unicorn BharatPe entered this space last year by partnering with Volt Money; the interest in digital lending is growing.
DSP Group Strengthens Fintech Portfolio with Volt Money
In a strategic move to expand its footprint in the fast-growing fintech sector, DSP Group has acquired Volt Money, a promising fintech startup backed by Titan Capital. This acquisition is set to enhance DSP’s digital services offerings and solidify its position in the competitive financial technology market.
Key Details of the Acquisition
Strengthening DSP’s Digital Presence: The acquisition of Volt Money comes as part of DSP Group’s broader strategy to diversify and strengthen its fintech offerings. Volt Money, with its innovative platform for personal finance management, provides DSP with an advanced digital solution that complements its existing financial services.
Volt Money’s Growth and Innovation: Volt Money’s platform leverages cutting-edge technology to provide users with intuitive tools for managing their finances, tracking expenses, and making smart investment decisions. Backed by Titan Capital, the startup had quickly gained market traction and customer loyalty, positioning itself as a leader in the personal finance space.
The Role of Titan Capital: Titan Capital, which played a key role in Volt Money’s growth, will see a return on its investment through the acquisition. Titan’s backing was instrumental in helping Volt scale its platform, and the acquisition allows DSP to tap into this foundation while continuing to innovate and expand in the fintech domain.
Strategic Benefits for DSP: For DSP Group, the acquisition is expected to unlock several strategic benefits. It not only adds a highly capable fintech platform to DSP’s portfolio but also strengthens the company’s digital transformation initiatives. By integrating Volt Money’s services with DSP’s broader offerings, the group aims to deliver enhanced financial solutions to a tech-savvy, digitally-engaged customer base.
Future Growth Plans: The integration of Volt Money will allow DSP Group to accelerate its growth in the fintech space. Volt’s innovative approach to financial management and customer engagement is expected to drive new opportunities, particularly in areas like personal finance, investments, and digital payments.
Future Prospects
Instability and demand for flexibility in lending solutions are growing, so fintech is shifting to favor instant lending solutions. With DSP’s acquisition of Volt Money, the company is ready to prowl this trend as it offers a holistic suite of financial products for today’s consumers. DSP focused on utilizing technology to simplify the process of lending, hence to position itself better in the market and improve customer satisfaction.
A claim by Entrackr states that the purchase of Volt Money by DSP Group is a strategic investment in the burgeoning fintech sector. This also helps DSP to offer its service offerings beyond the breadth of services, as more and more people become tech savvies.
Conclusion
Volt Money will continue to operate under its brand name post-acquisition, with DSP Group focusing on maintaining its current customer relationships and building upon the startup’s platform. The leadership team at Volt Money is expected to remain in place, ensuring a smooth transition and continued growth in the fintech sector. The move allows DSP to tap into the rapid growth of digital finance while enhancing its ability to offer innovative solutions to its customers. As the fintech sector continues to evolve, DSP is well-positioned to leverage this acquisition to further drive its growth and digital transformation strategy.
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