Investment platform Wint Wealth is planning to raise $20 million in a funding round led by Vertex Ventures Southeast Asia & India. The shift is a significant first step in the business that has been steadily growing its influence in the alternative investment market. The investment should assist Wint Wealth in its expansion strategies and reinforce its regulatory and compliance framework.

Funding round and business model

Vertex Ventures is leading the $20 million round, with the involvement of the existing investors. The round is already in its advanced phase, and the last closure is expected in the near future. The funding will be a combination of both primary and secondary elements, though the ratio has not been released.

Wint Wealth had already raised $5 million in January 2022 in a Series A round led by BEENEXT and other investors such as Rainmatter of Zerodha and Kunal Shah of CRED. The new round will, thus, be a considerable increase in the funding, which is a sign of investor trust in the growth curve of the platform and its business model.

Ajinkya Kulkarni, Anshul Gupta, and Himanshu Chouhan are the founders of Wint Wealth, which was established in 2020. Wint Wealth provides retail investors with the opportunity to access investment products in the field of fixed-income that were previously not offered to institutional investors. The platform is focused on securitized debt instruments with loans secured by non-banking financial companies (NBFCs). These are marketed in stock markets and are designed to provide predictable returns that are comparatively less risky than equities.

Democratization of access to high-yield fixed-income products is the core proposal of the company. It has positioned itself as an intermediary between retail investors and quality debt securities and has returns between 9% and 11%. Secured loans usually support the products offered by Wint Wealth, which further provides some security to the investors.

Regulatory and compliance framework

The reinforcement of its regulatory and compliance structure is one of the major areas Wint Wealth will use the new capital to implement. Considering the specifics of its products, where complex financial tools are involved, including regulatory control, the company is particularly interested in staying in full compliance with all the existing standards.

The platform has been collaborating with regulators and legal professionals to make sure that its products are designed in a way that is consistent with the regulatory environment. The new investment will help Wint Wealth invest more in legal and compliance infrastructure, which is essential to grow its business and keep its investors on board. 

Leadership and growth of Wint Wealth

Institutional investors have historically controlled the Indian fixed-income investment sector, and there have been few products offered to retail investors. Wint Wealth plans to seize this opportunity and provide accessible, transparent, and relatively low-risk curated debt products. Retail investors have increasingly been showing interest in the platform, especially those seeking alternatives to volatile equity markets.

The rise and development of the company has been driven by the rising consciousness of investors regarding the value of portfolio diversification and the necessity to have stable income-generating assets. As interest rates stabilize and inflationary pressures are driving down, fixed-income products are becoming rediscovered, and this is a strategic high point at which Wint Wealth can scale its products.

The participation of Vertex Ventures in the capital round is perceived as a powerful recommendation of the business concept and future development of Wint Wealth. Vertex has been known to support high-growth startups in industries and has a history of assisting businesses in different phases of their life cycle. Their participation will not only introduce capital but also strategic advice and a wider network of partners and advisors.

The involvement of the current investors in the round provides additional evidence of the ongoing belief in the vision and execution capacity of Wint Wealth. The fact that the company can lure new support in terms of funds to its existing investors is an indication that all is well in the market and to potential investors.

Conclusion

The next funding round of Wint Wealth, led by Vertex Ventures, is expected to raise $20 million, which will be a significant milestone and a milestone in the company. Having concentrated on the development of its products, improving regulatory frameworks, and strengthening investor confidence, the platform is in a strong position to seize the expanding fixed-income investment opportunities in India. As the round approaches the end, the question many will have is what Wint Wealth will do with this capital and how it will use it to grow its operations and establish itself in the alternative investment market.