DSP Mutual Fund Acquires Volt Money

DSP Mutual Fund has successfully acquired Volt Money, a platform that specialises in providing instant secured loans against mutual funds, according to three sources familiar with the situation who shared insights with Startup Superb.

The two entities were engaged in discussions for several months, culminating in an agreement reached last month. Post-acquisition, key personnel from Volt Money will integrate into DSP Mutual Fund, as disclosed by a confidential source.

About Volt Money

Volt Money partners with lenders and distribution channels to offer instant secured loans characterised by attractive conditions. The company’s credit lines vary from Rs 25,000 to Rs 1 crore, with interest rates beginning at 9% and repayment options that provide flexibility.

Funding and Management Team

Volt Money is led by Lalit Bihani, Ankit Agarwal, and Bharat Lamba. The firm secured $1.5 million in a Seed round, spearheaded by Titan Capital and All In Capital, with contributions from investors such as Praveen Jadhav from Raise Ventures, Aditi Kothari from DSP Adiko Holdings, Gemba Capital, Kunal Shah from Cred, as well as Ashish Kehair and Rahul Jain from Nuvama Wealth.

Reactions and Insights

Managed by DSP Investment Managers, DSP Mutual Fund delivers a variety of investment solutions, which encompass equity, debt, hybrid, and international funds.

Sources indicate that the acquisition did not yield substantial returns for investors. A source noted that Volt Money was unable to secure additional funding following its initial seed investment, but regarded the acquisition as a fair outcome for the company’s founders.

Inquiries made to Volt Money and DSP Mutual Fund prior to the publication of this information remained unanswered.

Market Position

Volt Money faces competition from Quicklends and DhanLap. Notably, last year, fintech unicorn BharatPe entered the loans-against-mutual-funds market through a collaboration with Volt Money.