Spense Raises $2.8 Mn in Seed Round led by Arkam Ventures

The round also included investments from Razorpay Ventures, GrowthCap Ventures, Atrium Ventures, and several angel investors.

Spense will use the new funding to strengthen its banking partnerships, speed up product development, and expand its engineering and sales teams.

The company also plans to launch Credit Line on UPI and continue developing its AI-powered credit platform.

"India's credit challenge is often viewed as a risk problem. We believe it is fundamentally an infrastructure problem. India does not have a shortage of assets. It has a shortage of infrastructure that can convert those assets into usable credit. We believe the next generation of banking will be built on two foundations: infrastructure that unlocks assets and AI that makes credit intelligent, scalable and accessible. If you have a valuable asset, you should have access to modern credit," Pawan Kumar, Co-founder & CEO, Spense.

“We backed Pawan and Srinivas because we believe Spense is building foundational infrastructure for the next era of credit in India,” said Bala Srinivasa, managing director at Arkam Ventures. “As credit shifts toward safer, asset-backed models, platforms like Spense will play a critical role in helping financial institutions scale responsibly while expanding access to formal credit.”

Founded in 2022 by Pawan Kumar and Srinivas Krishnamurthy, Spense provides banking technology that helps banks launch credit cards and credit lines backed by customer assets such as fixed deposits, mutual funds, shares, and other investments.

Its platform uses AI to automate customer onboarding, account management, collections, and customer support, making the lending process faster and easier.

The company works with seven banks in India, including one of the country's largest public sector banks. Its platform powers more than 200,000 active credit cards and helps issue over 40,000 new cards every month.

Spense aims to help banks offer instant and reusable credit products backed by different types of customer assets, giving customers a more flexible option than traditional secured loans.

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