The fintech startup looks at this acquisition as a growth catalyst for its platform, with both DSP and Volt Money recognizing significant potential in the mutual fund space, sources close to the matter told Inc42

Founded in 2022 by Bharat Lamba, Lalit Bihani and Ankit Agrawal, Volt Money offers loans against mutual fund investments

The acquisition came on the back of growing demand for instant loans against MFs since it enables people to fulfil both long term financial goals and short term liquidity needs, the source told Inc42

Asset management company DSP Asset Managers has acquired Bengaluru-based fintech startup Volt Money that offers loans against mutual funds.

The fintech startup looks at this acquisition as a growth catalyst for its platform, with both DSP and Volt Money recognizing significant potential in the mutual fund space, sources close to the matter told Inc42.

“DSP asset managers were shareholders of Volt Money and they were privy to the company’s numbers, so they proposed the acquisition deal,” the source said.

Entrackr reported the development first.

DSP Asset Management is an investment management firm, offering a range of financial products including mutual funds, portfolio management services, and wealth management solutions.

Meanwhile, founded in 2022 by Bharat Lamba, Lalit Bihani and Ankit Agrawal, Volt Money offers loans against mutual fund investments. It also offers both plug-and-play and deep integration capabilities for B2B fintech players to offer embedded finance for their clients.

The acquisition came on the back of growing demand for instant loans against MFs since it enables people to fulfil both long term financial goals and short term liquidity needs, the source told Inc42.

“We very strongly believe that demand for instant loans against mutual funds is growing, enabling people to fulfil long term financial goals and short term liquidity needs,” the source said.

On the financial front, Volt Money reported zero revenue in the first year of operations in the financial year 2023 (FY23).

Last year, Volt Money announced a strategic partnership with PhonePe to offer loans against mutual funds for the customers of the digital payments giant.

Prior to that in 2023, it raised $1.5 Mn in a pre-seed funding round from investors such as Titan Capital, All In Capital, among others.

This also comes at a time when India’s fintech market is expanding and is projected to turn into an over $2.1 Tn Market Opportunity By 2030.

The fintech segment has recorded more than 212 mergers and acquisitions (M&As) since 2014 as per Inc42’s State Of Indian Fintech Report 2024.

Notably, India’s startup ecosystem is expecting its M&A deals to shoot up by 58% in 2025 after only 71 such deals recorded in 2024.

For instance, fintech SaaS company Zaggle is eyeing three acquisitions by March 2025 as reported by Inc42 in December last year.

Besides, it was reported earlier this month that fInttech Startup M2P FINTECH is in talks to acquire enterprise artificial intelligence startup Mad Street Den.