Bengaluru’s fintech scene continues to thrive with the emergence of Spense, a promising startup focused on revolutionizing India’s credit infrastructure. Recently, Spense announced it has raised $1.85 million in a pre-seed funding round led by GrowthCap Ventures. This capital injection marks a significant milestone for the startup as it aims to scale its programmable banking infrastructure and deepen partnerships within the fintech ecosystem.

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What Is Spense and What Does It Do?

Founded in 2023 by Pawan Kumar and Srinivas Krishnamurthy, Spense is building a full-stack programmable banking platform designed to help regulated financial institutions, including banks and fintech companies, modernize and streamline their credit offerings.

• Pawan Kumar brings extensive experience as the former Head of Applied Science at Uber India.
• Srinivas Krishnamurthy has a strong technical background, having led teams at BNP Paribas.

Spense’s platform enables its partners to issue secured credit cards, prepaid payment instruments, and forex products — all while maintaining strict compliance with regulatory standards. The startup focuses on integrating seamlessly with legacy banking systems, ensuring auditability and transparency, which are critical in financial services.

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Why Is Spense’s Solution Important?

India’s financial services sector is rapidly evolving, with digital payments and credit products gaining momentum. However, behind this growth lies a complex web of legacy infrastructure that often slows down innovation and increases operational risk.

Spense aims to “rewire” these credit rails by offering a programmable infrastructure that allows banks and fintechs to launch new credit products quickly and compliantly. This approach can:

• Reduce time to market for innovative credit solutions.
• Enhance regulatory compliance with built-in audit trails.
• Increase scalability and flexibility by offering programmable APIs.
• Enable fintech partnerships for co-branded products and services.

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Details of the Funding Round

The pre-seed round raised $1.85 million, led by GrowthCap Ventures, a well-known early-stage venture capital firm. Existing high-profile angel investors also participated, including:

• Kunal Shah, founder of CRED, one of India’s most successful fintech platforms.
• Sayandeb Banerjee, founder of The Math Company.
• Suresh Rayasam, a senior executive at Google.
• Ravi Sudhak, a notable leader at Microsoft.

The involvement of such distinguished investors not only adds capital but also brings strategic guidance and industry connections that could accelerate Spense’s growth.

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How Will Spense Use the Funds?

With this funding, Spense plans to:

• Scale its programmable banking infrastructure to onboard more banks across India.
• Expand fintech partnerships beyond its current focus on secured credit cards.
• Develop new product offerings, including prepaid instruments and forex solutions.
• Invest in technology and talent acquisition to build a robust, compliant platform.
• Enhance integration capabilities with legacy systems, allowing easier adoption by traditional banks.

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The Founders’ Vision for Spense

Pawan Kumar and Srinivas Krishnamurthy envision Spense as a critical backbone for India’s digital banking future. By providing a modular and programmable platform, they want to empower regulated entities to innovate faster while meeting compliance and audit requirements seamlessly.

Their combined expertise in applied science, data, and financial technology positions Spense uniquely to address the challenges that legacy banks face in today’s fast-moving fintech environment.

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The Fintech Opportunity in India

India’s fintech industry is booming, driven by factors like:

• Increasing smartphone penetration.
• Government initiatives promoting digital payments.
• Growing consumer demand for credit and financial products.
• Regulatory reforms encouraging innovation.

Yet, many banks still rely on outdated systems, creating bottlenecks for product launches and compliance management. Spense’s infrastructure model offers a solution by enabling these banks to modernize their credit rails without undergoing costly system overhauls.

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Industry Experts Weigh In

Experts believe programmable banking platforms like Spense’s are poised to become essential components of India’s financial ecosystem. By bridging the gap between legacy infrastructure and modern fintech capabilities, such platforms can unlock faster innovation cycles and improved risk management.

High-profile investors backing Spense have cited the startup’s potential to become a cornerstone infrastructure provider for banks and fintechs navigating India’s complex regulatory environment.

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What’s Next for Spense?

With $1.85 million in fresh capital, Spense is gearing up for an aggressive expansion phase:

• Onboarding new banking partners who want to launch secured credit cards and prepaid products.
• Forging fintech alliances to co-create innovative credit solutions.
• Expanding product portfolio to include forex and other regulated instruments.
• Strengthening compliance features to ensure smooth audits and regulatory adherence.
• Scaling operations and hiring top talent to build a world-class product and engineering team.

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Spense’s $1.85 million pre-seed funding round highlights the startup’s growing influence in India’s fintech ecosystem. By focusing on programmable banking infrastructure tailored to regulated financial entities, Spense is addressing a critical need for modernization in India’s credit landscape.

Backed by experienced founders and prominent investors, Spense is well-positioned to accelerate India’s transition to a more agile, compliant, and customer-friendly credit ecosystem. The coming years could see Spense play a pivotal role in shaping the future of India’s digital banking and credit infrastructure.

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