Fintech startup Yenmo receives a $500,000 investment from Y Combinator.

Yenmo, a platform that offers instant loans against mutual funds, has announced the completion of its latest funding round, securing $500,000 in investment from Silicon Valley-based startup accelerator Y Combinator. This investment from Y Combinator is expected to play a pivotal role in Yenmo's efforts to promote financial inclusion in India.

Ashutosh Purohit, CEO and Co-founder of Yenmo, stated, "Our goal is to democratize access to a range of lending options that were previously only available to high net worth individuals, making them accessible to every Indian consumer." Yenmo allows Indian investors to borrow against their investments, such as mutual funds and stocks, at a fixed 10.5% interest rate, all within a five-minute process. Investors can monitor their investments in real-time, choose the assets they want to borrow against, and receive funds directly into their bank accounts, allowing their investments to continue growing while meeting immediate financial needs seamlessly.

Purohit expressed concern about the significant amount, approximately $30 billion annually, being redeemed from equity mutual funds by retail investors to fulfill short-term needs. With Yenmo, investors no longer need to liquidate their mutual funds; instead, they can opt for a loan against them, preserving their investments for the long term. This approach aims to help investors' money grow over time while providing access to funds for immediate requirements, ultimately increasing their overall returns.

Yenmo also provides a full-stack API solution for other companies to integrate loans against mutual funds into their products. Additionally, it plans to introduce new products such as loans against stocks, insurance, digital gold, and land in the future.