Peak XV Leads $25M Round for Stable Money as India Wealthtech Heats Up

The Indian wealthtech landscape is undergoing a significant transformation, moving beyond the high-octane world of equity trading toward the more stable, yet massive, domain of fixed-income assets. This shift is punctuated by Stable Money’s latest $25 million Pre-Series C funding round, led by Peak XV Partners. Valuing the Bengaluru-based startup at $175 million, the round signals a maturing market where investors are increasingly prioritizing capital preservation and predictable returns. As global equity markets face persistent volatility and interest rates in India remain attractive, the demand for structured, low-risk financial products has surged, providing a fertile ground for platforms like Stable Money to bridge the gap between traditional banking and digital-first wealth management.

Stable Money’s core value proposition addresses a fundamental friction point in the Indian financial system: the fragmentation of fixed-income products. Historically, retail investors had to navigate multiple bank portals or visit physical branches to compare and invest in fixed deposits (FDs) or debt mutual funds. By aggregating these products from various banks and non-banking financial companies (NBFCs) into a single, user-friendly interface, Stable Money is effectively digitizing the neighborhood bank experience. This approach is particularly resonant with a demographic that has a high savings rate but a relatively low risk appetite. The participation of heavyweight institutional investors like Z47 (formerly Matrix Partners India), RTP Global, and Fundamentum Partnership—who previously backed the company in a $40 million round—underscores a collective institutional bet on the long-term potential of the fixed-income-first strategy.

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This shift is punctuated by Stable Money’s latest $25 million Pre-Series C funding round, led by Peak XV Partners.

The strategic allocation of this new capital toward tier-2 and tier-3 cities marks a pivotal moment for the company. While the first wave of Indian fintech was largely an urban phenomenon, driven by tech-savvy millennials in metros like Mumbai and Bengaluru, the next phase of growth is expected to emerge from Bharat. These semi-urban areas represent a vast, untapped reservoir of capital. Investors in these regions are traditionally more conservative, often keeping their wealth in savings accounts or physical gold. Stable Money’s expansion into these markets aims to provide the necessary digital infrastructure to transition these traditional savers into sophisticated digital investors. By offering competitive interest rates and a simplified onboarding process, the platform is not just competing for market share; it is expanding the total addressable market for digital financial services in India.

From a competitive standpoint, Stable Money is carving out a niche that distinguishes it from broader wealth management super-apps. While platforms like Groww and Zerodha have dominated the equity and mutual fund space, their foray into fixed income has often been secondary. Stable Money’s specialized focus allows for deeper integration with banking partners and a more tailored user experience specifically designed for the risk-averse investor. However, the challenge for the company lies in maintaining healthy margins in what is traditionally a low-spread business. To sustain its $175 million valuation and move toward profitability, the company will likely need to diversify its product suite. We can expect to see the introduction of corporate bonds, sovereign gold bonds, and perhaps tax-saving instruments, all while maintaining the simplicity that has become its hallmark.

Looking forward, the success of Stable Money will serve as a litmus test for the viability of specialized wealthtech platforms in a market often dominated by generalists. As the Reserve Bank of India continues to tighten regulations around digital lending and financial intermediaries, Stable Money’s ability to maintain rigorous compliance while scaling its user base will be critical. The company's trajectory suggests a move toward becoming a comprehensive fixed-income ecosystem. If it can successfully capture the trust of the conservative Indian household, it could pave the way for a new category of stability-focused fintech unicorns. This evolution could eventually lead to a public listing, provided the platform can demonstrate a clear path to profitability through scale and cross-selling higher-margin financial products to its growing base of tier-2 investors.