Banking infrastructure startup Spense has raised $2.8 million in a seed funding round led by Arkam Ventures, with participation from Razorpay Ventures, GrowthCap Ventures, and Atrium Ventures. The round also attracted several prominent angel investors, including Kunal Shah, Madhusudhan E, Ravishankar, Suresh Rayasam Venkatasubbaih, and Sayandeb Banerjee.
The newly raised capital will help the company strengthen its banking partnerships, accelerate product development, expand its engineering and go-to-market teams, and launch its Credit Line on UPI (CLOU) offering, according to the company’s announcement.
Strengthening Banking Technology for Modern Credit Products
Founded in 2022 by Pawan Kumar and Srinivas Krishnamurthy, Spense develops banking infrastructure that enables financial institutions to introduce secured credit products without replacing their existing technology systems.
The startup focuses on helping banks launch credit cards and credit lines backed by customer assets while continuing to operate on their existing core infrastructure. By integrating with current banking technology instead of requiring a complete system overhaul, Spense aims to reduce the complexity and time involved in introducing new lending products.
The company positions its platform as a bridge between legacy banking systems and modern digital credit solutions, allowing financial institutions to expand their product offerings while minimizing disruption to existing operations.
Real-Time Integration Across Banking Systems
At the core of Spense’s offering is a bank-native platform that connects multiple banking systems in real time. The platform integrates core banking systems, deposit systems, and card management systems, enabling banks to coordinate data and processes more efficiently.
This real-time connectivity allows financial institutions to launch new credit products significantly faster than traditional implementation methods, which often involve lengthy integration projects and infrastructure changes.
As banks continue to modernize their digital capabilities, platforms that simplify system integration are becoming increasingly important. By working alongside existing banking infrastructure rather than replacing it, Spense aims to reduce deployment timelines and operational challenges for its partner institutions.
Also Read: At 14, Jainam Jain Is Building an AI Startup From the Burj Khalifa
AI-Powered Automation for Banking Operations
A key component of Spense’s platform is its use of artificial intelligence to automate operational processes that have traditionally relied on large manual teams.
The company deploys agentic AI to manage workflows across multiple banking functions, including customer onboarding, servicing, collections, and customer support. These autonomous AI agents operate continuously, handling repetitive and operationally intensive tasks that are typically resource-heavy for financial institutions.
According to the company, automating these workflows helps banks manage the operational complexity associated with secured credit products while improving efficiency and reducing the costs of scaling such offerings.
The AI-driven approach is designed to support financial institutions throughout the customer lifecycle, enabling faster processing and more streamlined operations without requiring extensive manual intervention.
Fresh Capital to Drive Product Expansion
The latest funding will support several strategic priorities for Spense as it expands its platform.
In addition to strengthening partnerships with banks, the company plans to invest in product development and grow its engineering capabilities to support future innovation. It also intends to expand its go-to-market team as it increases customer adoption across the banking sector.
Another major focus is the rollout of Credit Line on UPI (CLOU), a product that aligns with the growing adoption of digital payments and credit services within India’s financial ecosystem.
With the seed funding now secured, Spense is looking to strengthen its technology platform while helping banks launch modern credit products more efficiently through seamless integration, real-time connectivity, and AI-powered operational automation.
Also Read: Limelight Diamonds Raises Rs 275 Crore to Expand Retail and Manufacturing
