Neobanking startup Zolve to raise $25 million from Creaegis as part of larger round

Raghunandan G, founder, Zolve

Cross-border neobanking startup Zolve is set to raise $25 million (around Rs 200 crore) in a fresh round of funding from Creaegis, people aware of the developments told Moneycontrol. The total round size may end up increasing slightly as negotiations are still underway, they added.

The new round values the company at $330-360 million, one of the people cited above said.

Zolve was last valued at $210 million when it raised $40 million in its Series A round where DST Global, Tiger Global, Alkeon Capital, as well as existing investors Accel and Lightspeed, participated.

Zolve is stitching together a new round just months after it secured a $100-million debt facility from impact investor Community Investment Management (CIM) in October 2023.

Zolve and Creaegis did not respond to Moneycontrol’s queries when this story was published.

At that time, Zolve, which assists in opening bank accounts and issues credit cards to Indians looking to relocate to the US, said it would use the money to expand to more geographies like the UK, Canada and Australia.

Since its inception in 2021, Zolve claims to have attracted around 500,000 users, facilitating transactions of more than $600 million and those numbers are only increasing as it services more people. In a press release last year, the company claimed its customer retention at 86 percent.

The startup has so far bagged over $150 million in equity and debt financing in a span of three years. It was founded by serial entrepreneur and angel investor Raghunandan G, who previously co-founded TaxiForSure. The mobility startup was eventually sold to rival Ola for $200 million.

For Creaegis, floated by former Premji Invest managing partner and chief investment officer (CIO) Prakash Parthasarathy, Zolve will be yet another company that will become a part of the investor’s growing portfolio once the deal is complete.

From its maiden fund of $426 million, which closed in September 2023, Creaegis has backed startups like coffee chain Third Wave Coffee Roasters, health tech firm Medikabazaar, and insurtech company Zopper.