Delhi-based fintech startup Castler, which specialises in digital escrow solutions, has partnered with leading angel network Mumbai Angels (MA) to provide secure, faster, and affordable digital escrow solutions to the network’s portfolio companies. Mumbai Angels has more than 170 companies in its portfolio.
As part of the tie-up, Mumbai Angels’ network companies will be able to use Castler's platform for several use-cases, including lending, profit sharing, pooling of funds from investors, cash flow collection, mergers & acquisitions, gaming, real estate, charities, and fund raisings.
At a time when cyber frauds and online scams are on the rise globally and in India, Castler has registered a significant jump in the number of transactions on its platform. The venture has been registering an average of 6,000 transactions every month with the cumulative transaction value pegged at ₹80 crore.
The start-up, which is owned by Ncome Tech Solutions, raised ₹3.6 crore in December 2020 in a pre-seed funding round from Venture Catalysts, PointOne Capital, 9Unicorns, and AngelList. The company, which is in talks to raise a Series A funding round by the end of this year, has 38 enterprise clients and is looking to add about 600 such clients next year.
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“The current transaction environment in India is extremely uncertain and riddled with frauds, and this has led to a substantial trust gap between parties,” said Castler's Co-Founder and CEO Vineet Singh, who has previously worked with Mobikwik, 99acres, and Naukri.com.
“A robust, secure, and convenient transaction ecosystem is the need of the hour for both consumers and enterprises. Teaming up with Mumbai Angels to extend secure digital escrow to their portfolio companies will act as a great catalyst for improving accessibility to the solution we offer,” he added.
In a similar context, Shivangi Bubna, Head of Investment Products, Mumbai Angels Network said that the network is curating a high-end cohort of service providers to strengthen the core businesses of its portfolio companies.
“We believe Castler can be a promising partner for escrow services, an innovative solution for early-stage companies looking for funding, and a secure payment route in this initiative,” said Bubna.
Escrow accounts are generally opened by entities that are entering into some kind of agreements and are used to park the money before it is transferred to the beneficiaries. The release of funds is typically linked to certain conditions or completion of the agreement terms.
Castler has digitised the escrow account ecosystem and has even tied up with leading banks – including ICICI Bank -- and certified trusteeship firms.
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