Castler, an escrow banking platform, has bagged $5.5 million in Pre-Series A funding round by Flipkart Ventures, along with participation from Capital 2B (an Info Edge Fund), IIFL Fintech Fund and other key investors.
"Having Flipkart Ventures as an investor is a noteworthy accomplishment that underscores Castler's strong performance and cements our pole position in the escrow banking industry. We have everything in place now to execute and build a large business," said Vineet Singh, Co-Founder and CEO of Castler.
The startup intends to use the fresh funding to bolster its expansion strategy for both domestic and cross-border escrow services. The firm intends to establish partnerships with over 25 banks, targeting substantial growth in the coming years, a statement said.
Founded in 2021, Castler is currently providing its solution for over 500 enterprises, including 200 startups, over 150
Non-Banking Financial Companies (NBFCs) and Lending Service Providers (LSPs), handling monthly transactions exceeding Rs 5,000 crores.
It is now launching full-stack solutions for liquidation and Real Estate Regulatory Authority (RERA) escrows in partnership with multiple banks, IRP’s and NBFC’s. The firm recently on-boarded fintech veteran Kumar Amit, ex-Razorpay, as Co-Founder & COO, to further fuel its growth plans.
“We are pleased to invest in Castler as it continues to fuel innovation and growth in its industry. The investment is being made by Flipkart Ventures through its cohort-based Leap Ahead program,” said Lubna Ahmed, Head of Flipkart Ventures.
Flipkart Ventures, the investing arm of the e-commerce major, is investing in five early-stage, tech-focused startups as part of its accelerator programme. The startups, part of the Flipkart Leap Ahead (FLA) programme, are Algomage, Castler, FlexifyMe, NimbleBox.ai and ReCircle.
FlexifyMe, a health-tech platform dedicated to chronic pain management, has closed its seed funding round, raising $1 million from Flipkart Ventures. This funding will help the company in fast growth. FlexifyMe said it has grown by almost 5X in the last 12 months.
Meanwhile, Flipkart Ventures has invested $500,000 in AI post-production startup Algomage in a Pre-Series A funding round to fuel company’s growth and expansion plans. The funds will also be used to expand the firm's sales and marketing team to expand its reach.
The selected startups will receive mentorship for growth and innovation, with equity-based investments ranging from $250,000 to $500,000. Additionally, they will be provided support in achieving product-market fit, laying the grounds for a scalable architecture, and building cohesive teams, Flipkart Ventures said in a statement.
In its second year, the programme aims to foster innovation and nurture entrepreneurship by providing entrepreneurs with the tools they need to succeed in their domain, and also positively impact the ecosystems in which they operate.
“Flipkart has always been at the forefront of empowering the startup ecosystem in India. We are excited to witness the transformative journey of startups in India as they harness Flipkart’s resources and guidance to bring their innovative ideas to life,” added Ahmed.
(Edited by : Keshav Singh Chundawat)
