Washington, DC (February 26, 2024) – Village Capital announced its latest investments in Bandhu and FatakPay, two startups that participated in Village Capital’s Financial Solutions for Migrants program run in 2023.
Washington, DC (February 26, 2024) – Village Capital announced its latest investments in Bandhu and FatakPay, two startups that participated in Village Capital’s Financial Solutions for Migrants program run in 2023. The investment will come from the Village Capital-managed Financial Health Innovation Fund (FHIF), an early-stage globally-focused investment vehicle funded by MetLife Foundation. The two companies join a group of eight startups that have secured investment from the fund, which was established to support and channel funds into early-stage startups enhancing financial well-being for individuals with low to moderate incomes.
India, a country of over 1.4B people, witnesses substantial internal migration, as more than 450M individuals move from rural to urban areas in pursuit of employment and economic prospects. This migration presents challenges like insufficient housing, limited access to quality jobs, and barriers to accessing financial services. Financial exclusion is particularly pronounced among migrants, many of whom lack a permanent address and face challenges accessing formal financing, resulting in a reliance on informal, unregulated lenders that charge exorbitant rates. Village Capital’s 2023 program was focused on servicing and supporting the innovative startups emerging to address the financial needs of these migrants. Fatakpay and Bandhu are two of those solutions and were among the top-ranked amongst their peers during Village Capital’s peer-diligence process.
“The entrepreneurs that participated in the Financial Solutions for Migrants program are each developing meaningful solutions to improve the financial resilience of migrant communities,” said Meredith Storton, Senior Manager, Impact Investments at Village Capital. “We believe the entrepreneurs themselves are best positioned to identify the most promising solutions through Village Capital’s peer due diligence process. We leveraged these peer insights in our decision to support Bandhu and Fatakpay, both of which provide impactful solutions to enhance the economic mobility of low-income migrant workers in India.”
Established in 2020 and based in Ahmedabad, India, Bandhu is a tech platform that streamlines the migration process from rural to urban areas by offering low-income workers affordable housing and employment opportunities. To date, the company has boarded 100,000 workers and enabled the discovery and digitization of 62,000 affordable rental opportunities. By greatly improving the search process and access to jobs and dignified housing, Bandhu provides pathways to financial security for India’s blue-collar workers.
“Village Capital has been one of those torchbearers in identifying the critical challenge of populations in transition as a focus area for their incubator and fund,” said Rushil Palavajjhala, CEO and Co-Founder of Bandhu. “We’ve found a great ally with VilCap as we look to push ahead.”
Established in 2021 and based in Mumbai, India, Fatakpay partners with employers to offer small, short-term loans to low-income workers to help them cover unexpected expenses. These workers, many of whom are migrants, have traditionally been excluded from formal financial services because they lack proper documentation or credit history. So far, Fatakpay has provided critical funding to over 60,000 individuals, partnering with over 60 corporate employers to reach their employees.
“Fatakpay has benefited immensely from the Village Capital program, which provided us with unique insights, guidance, and feedback that has helped us understand our customers better and improve our product offerings for the migrant population,” said Abhishek Gandhi, Co-Founder and CBO of Fatakpay. “The network and synergies we built with our peers have been outstanding. VilCap’s belief in our vision has not only provided us with the financial resources needed to drive meaningful change, but has also served as a beacon of encouragement and validation for our team.”
For more information on the Financial Health Innovation Fund and our portfolio companies, reach out to Meredith Storton at Village Capital (meredith.storton@vilcap.com).
About Village Capital
Village Capital is reinventing the system to back the entrepreneurs of the future. Known for its groundbreaking approaches to supporting founders who are building solutions to emergent social, economic, and environmental challenges, VilCap unlocks critical social and financial capital for early-stage companies to maximize business and impact growth.
Since 2009, Village Capital has supported over 1,600 startups that have raised over $5 billion in investment capital. It has made more than 150 investments through its various affiliated funds, including Vilcap Investments, which has invested in 110 peer-selected companies. Over 20,000 entrepreneurs have joined Abaca, VilCap’s web app that equips early-stage, impact-driven entrepreneurs with essential tools for accessing capital and other forms of support. Its latest feature, Capital Explorer, helps founders identify the most appropriate funding options for their businesses. Learn more at www.vilcap.com and follow @villagecapital.
