Fintech Startup Spense Raises $2.8 Million to Build Secured Lending Infrastructure

Indian fintech startup Spense has raised $2.8 million (approximately ₹27 crore) in a seed funding round led by Arkam Ventures, with participation from Razorpay Ventures, GrowthCap Ventures, and Atrium Ventures. The fresh capital will be used to strengthen the company's secured lending infrastructure as financial institutions increasingly shift towards lower-risk credit products.

The funding comes at a time when India's lending ecosystem is witnessing a transition from unsecured lending to asset-backed credit solutions amid rising loan delinquencies and tighter regulatory oversight. Spense enables banks and financial institutions to launch secured credit products without replacing their existing core banking technology, making credit deployment faster and more efficient.

With partnerships already established across several leading banks and more than 2 lakh active cards powered through its platform, Spense aims to accelerate the adoption of secured credit products while helping financial institutions improve risk management and expand financial inclusion across India.

Funding Round: Key Highlights

What Does Spense Do?

Spense develops technology infrastructure that allows banks and financial institutions to launch modern secured lending products without replacing their existing technology stack. Its platform enables institutions to offer products such as secured credit cards, secured credit lines and other collateral-backed lending solutions through a plug-and-play infrastructure.

As lending institutions become more cautious about unsecured credit exposure, platforms like Spense are helping banks digitise secured lending while improving operational efficiency and reducing implementation time.

Why Is Secured Lending Becoming Important?

India's lending landscape has changed significantly over the past year as rising defaults in unsecured personal loans and consumer credit have prompted banks to tighten lending standards. As a result, financial institutions are increasingly focusing on secured lending products where credit exposure is backed by deposits or other financial assets.

This shift has created growing demand for technology platforms that simplify the launch and management of secured lending products while maintaining compliance with banking regulations.

Spense's Current Scale

Spense has already established relationships with several leading banking institutions across India. Its infrastructure currently supports more than 2 lakh active cards, demonstrating growing adoption of secured credit products by banks seeking technology-driven lending solutions.

The company continues expanding its presence by enabling banks to launch new secured lending offerings without undertaking expensive core banking technology upgrades.

How Will the Fresh Capital Be Used?

The newly raised capital is expected to support product development, technology enhancement and business expansion. The company is likely to invest in strengthening its lending infrastructure platform, expanding partnerships with banks and financial institutions, and developing additional secured lending products that cater to evolving market demand.

As India's digital lending market matures, scalable lending infrastructure providers are expected to play an increasingly important role in enabling financial institutions to launch innovative credit products more efficiently.

Market Analysis

India's fintech sector is entering a new phase where infrastructure providers are becoming increasingly important alongside consumer-facing lending platforms. Regulatory tightening and rising credit risk have encouraged banks to prioritise secured lending products, creating significant opportunities for fintech companies that build enabling technology rather than directly lending to consumers.

Spense operates in a segment benefiting from this structural shift, as banks seek faster deployment of secured credit solutions without replacing legacy systems. Growing adoption of secured credit cards, digital banking services and embedded finance could further expand demand for lending infrastructure platforms over the next few years.

While competition within India's fintech infrastructure space is expected to intensify, companies offering scalable, compliant and bank-friendly technology solutions are well positioned to benefit from the country's continued digital financial services expansion.

Key Takeaways

How much funding has Spense raised?

Spense has raised $2.8 million (approximately ₹27 crore) in a seed funding round.

Who led the funding round?

The investment round was led by Arkam Ventures, with participation from Razorpay Ventures, GrowthCap Ventures and Atrium Ventures.

What does Spense do?

Spense provides lending infrastructure that enables banks to launch secured credit products such as secured credit cards and credit lines without replacing their existing banking systems.

How many banks use Spense's platform?

The company has partnered with seven major banks across India.

How many active cards does Spense support?

Spense currently powers more than 2 lakh active cards through its lending infrastructure platform.