Dexif Secures $4 Million to Democratize Fixed-Income Investments in India

Dexif, a fintech startup led by former Blinkit executive Deepank Bhandari, has secured $4 million in seed funding from existing investor RTP Global. This fresh capital injection will fuel Dexif's mission to revolutionize India's fixed-income investment landscape.

Building a Scalable Tech Stack and Expanding Operations

The funding will primarily be directed towards fortifying Dexif's technology infrastructure. This is crucial considering the sheer size of India's bond market, estimated at a staggering $2.2 trillion. Additionally, Dexif plans to utilize the funds to expand business operations, strengthen its talent pool, and enhance its product offerings. User acquisition will also be a key focus area for the startup.

A Platform for Investors and Companies

Founded in 2022 by IIT-Delhi alumni Bhandari and Tushar Sharma, Dexif operates a unique technology platform catering to both retail and institutional investors. The platform facilitates trading in fixed-income securities issued by companies. Conversely, Dexif empowers companies to raise capital through various means, including non-convertible debentures (NCDs), term loans, and other asset classes.

Unlocking the Potential of Fixed-Income Markets

"This funding allows us to solidify our core strengths," says Bhandari, Dexif's co-founder and CEO. "Building a scalable tech stack is paramount to handle the high volumes of India's bond market. We're also actively recruiting top talent to support our growth trajectory." Additionally, Bhandari hinted at plans for further fundraising discussions in the near future.

Investor Empowerment and Innovation

"This seed funding validates our commitment to unleashing the full potential of India's fixed-income markets," Bhandari emphasizes. "The capital will fuel further innovation and product development, making fixed-income investments accessible to every investor."

RTP Global: A Partner in Growth

Nishit Garg, Partner at RTP Global's Asia arm, expressed his enthusiasm about the partnership: "We're delighted to have partnered with Dexif from the very beginning. The founders' vision for digitizing and democratizing the fixed-income market, coupled with their impressive execution capabilities, continues to inspire us."

Revenue Model and Regulatory Landscape

Dexif generates revenue through two primary channels. Companies seeking to raise capital through NCDs incur a fee, while investors offloading their shares on the platform are also subject to charges. On the regulatory front, Dexif has applied for two crucial licenses from the Securities and Exchange Board of India (SEBI). These licenses include the Online Bond Platform Providers (OBPP) license, expected by July 2024, and the debt broker license, anticipated by the end of May 2024.

OBPP and Debt Broker Licenses: Ensuring Compliance

The OBPP license is mandatory for platforms facilitating online bond trading. The debt broker license, on the other hand, allows Dexif to operate as an online bond platform provider without requiring a stockbroker registration under SEBI regulations.

Market Traction and Growth Potential

Dexif reports a promising gross transaction volume (GTV) of nearly INR 300 crore per month. The startup positions itself against other players in the fintech space like Jiraaf and Tap Invest.

Fixed-Income Market: A Booming Sector

Dexif's emergence aligns with the burgeoning popularity of fixed-income securities. Reports indicate that India's $2.2 trillion bond market boasts significant growth potential compared to other major economies. This trend presents a vast opportunity for Dexif to capitalize on with its innovative platform and commitment to financial inclusion.