Spense, a Bengaluru-based startup building programmable banking and card infrastructure, has raised US$1.85 million in a pre-seed funding round led by GrowthCap Ventures.

Other investors include Kunal Shah, co-founder of CRED, Sayandeb Banerjee, co-founder of The Math Company, Suresh Rayasam, Head of Applied AI for GTM, and Ravi Sudhakar, Director of AI Global Business Strategy at Microsoft.

The startup plans to use the new funding to onboard more banks and strengthen its fintech partnerships.

It also plans to enhance its technology offerings to support additional use cases beyond credit cards.

Spense was founded by Pawan Kumar, former Head of Applied Science at Uber India, and Srinivas Krishnamurthy, a former Technical Lead at BNP Paribas.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: Spense

🧠 Food for thought

1️⃣ India’s fintech revolution continues to address significant market gaps

Spense’s approach addresses a critical issue in a market where 40% of India’s population remains unbanked, representing a massive opportunity for innovative financial solutions 1.

The company’s focus on secured credit cards aligns with recent regulatory trends, as the Reserve Bank of India has expressed concerns about unsecured lending, prompting many banks to shift toward secured credit products 2.

This strategic positioning is particularly relevant in India’s rapidly growing fintech ecosystem, which boasts an adoption rate of 87% compared to the global average of 64% 3.

The secured credit card model leverages existing assets (like fixed deposits) to extend financial access, potentially serving as a bridge for millions of Indians who have savings but limited credit history.

2️⃣ Strategic shift toward secured lending reflects broader industry maturation

Spense’s focus on secured credit infrastructure mirrors a significant trend where established fintech players like PhonePe, Cred, and Paytm are actively partnering with NBFCs to offer secured loan products 4.

This pivot from the earlier fintech focus on unsecured lending represents an evolution in India’s digital finance landscape as companies seek more stable, lower-risk business models.

The timing is strategic, as India’s fintech industry is projected to reach approximately $150 billion in value by 2025, with a total addressable market of $1.3 trillion 5.

For investors like GrowthCap Ventures, backing infrastructure players positions them to capture value across multiple fintech verticals rather than betting on single consumer-facing applications.

3️⃣ Seasoned tech talent continues to reshape financial infrastructure

Spense exemplifies a pattern of experienced technology executives from global companies (in this case Uber and BNP Paribas) applying their expertise to rebuild financial infrastructure in India.

This talent migration is crucial in a market where the fintech software segment alone is expected to double from $1.2 billion to $2.4 billion 6.

The founders’ background in scaling systems at technology companies brings critical expertise to banking infrastructure, which has traditionally evolved more slowly than consumer applications.

Their focus on making systems “programmable, compliant, and ready to serve the next 100 million users” addresses core infrastructure needs in a market that recorded over 130 million transactions worth INR 139 lakh crore in 2022-2023 5.

……