Spense Raises $2.8M for India's Asset-Backed Credit Infrastructure

Bengaluru-based Spense has successfully closed a $2.8 million Seed funding round, signaling a significant push to revolutionize India's credit infrastructure. The investment was spearheaded by Arkam Ventures, with crucial participation from Razorpay Ventures, GrowthCap Ventures, and Atrium Ventures. This infusion of capital underscores a growing investor confidence in Spense's mission to unlock the potential of underutilized assets for credit generation.

Founded in 2022 by Pawan Kumar and Srinivas Krishnamurthy, Spense develops bank-native technology that empowers financial institutions to offer credit cards and lines of credit. The innovation lies in its ability to leverage a wide array of customer assets—including fixed deposits, mutual funds, equities, bonds, invoices, and even real estate—without requiring banks to overhaul their existing core systems. This approach addresses a critical gap in the market, where valuable assets often remain disconnected from formal credit channels due to infrastructural limitations.

The newly acquired funds are earmarked for strategic expansion across several key areas. Spense plans to deepen its existing banking partnerships, accelerate the development of its innovative product suite, and bolster its engineering and go-to-market teams. A significant focus will be placed on launching Credit Line on UPI (CLOU), a product anticipated to redefine asset-backed credit accessibility in India by integrating seamlessly with the nation's ubiquitous payment infrastructure.

Spense's operational traction is already notable. The company collaborates with seven major Indian banks, including a prominent public sector institution, and a robust network of fintech distribution partners. Its platform currently supports over 200,000 active cards and facilitates the issuance of approximately 40,000 new cards monthly, accounting for nearly 8% of India's monthly credit card origination volume. Financially, Spense has demonstrated impressive growth, with revenue surging 256% year-on-year in FY 2024-25 to INR 2.71 crore. Crucially, the company achieved profitability in the same fiscal year, posting a net profit of INR 53.9 lakh after two years of operational investment.

The investor syndicate reflects a deep understanding of the Indian fintech and enterprise technology ecosystem. Beyond the lead investor Arkam Ventures, known for its investments in companies like Skyroot Aerospace and KreditBee, the round saw participation from notable figures and firms such as Razorpay Ventures, GrowthCap Ventures (a returning investor from Spense's prior $1.85 million seed round), and Atrium Ventures. Prominent angel investors from the fintech sector, including individuals associated with CRED, KreditBee, Active.ai, LinkedIn, and The Math Company, also contributed, signaling strong industry validation.

Spense's core thesis posits that India's credit accessibility challenge is less about risk and more about the absence of efficient, scalable infrastructure. By creating the digital plumbing to connect diverse asset classes with credit origination systems, Spense aims to transform secured lending into a readily available financial utility, much like credit cards did for unsecured borrowing. This strategic funding positions Spense to become a foundational pillar in the evolution of credit delivery within one of the world's fastest-growing economies.