As financial inclusion remains a challenge in emerging markets, technology-driven solutions can play a crucial role in bridging gaps and expanding access to financial services, says Varun Malhotra, Partner at Quona Capital. The venture capital firm, founded in 2015 by Ganesh Rengaswamy, Jonathan Whittle and Monica Brand Engel, aims to support this growth, he says. The company’s notable investments include IndiaMART, Shivalik Small Finance Bank, Creditas, Konfio, and JULO. Edited excerpts:
What is Quona’s investment thesis?
We invest in companies that leverage technology to create accessible, affordable and impactful financial solutions. Our target regions include South and Southeast Asia, Latin America, and MENA [Middle East and North Africa]. Fintech solutions in these markets can have the most profound impact on underserved populations.
Globally, we have invested in approximately 80 companies, with around 30 investments in India alone, one of our key focus markets.
How much capital has Quona raised so far, and which fund are you currently deploying?
To date we have raised approximately $750 million across multiple funds. We are currently deploying capital from our $332-million third fund.
How much do you invest in a company typically, and how long do you stay invested?
Our initial cheque ranges between $4 million and $6 million, though we maintain the flexibility to invest anywhere from $2,00,000 to $10 million, depending on the opportunity and the company’s growth stage. We primarily invest in early-stage companies, focusing on seed to Series A rounds.
We prefer to take a long-term perspective, invested for 8–10 years, rather than chasing quick exits.
Beyond funding, do you offer mentorship to founders?
Our approach goes beyond capital. We work closely with founders to help them navigate the unique challenges of building businesses in emerging markets, offering guidance, global networks and insights drawn from our extensive experience across regions.
What are the key trends shaping the fintech landscape?
We are observing a convergence of AI and financial services, as this has the potential to reshape workflows for efficiency and personalisation. Generative AI, in particular, holds potential to automate routine tasks, enhance decision-making, and create tailored customer experiences.
Another key area is digital public infrastructure (DPI), particularly in India. Further advancements in DPI, especially related to credit on UPI and embedded finance, can improve financial inclusion in the coming years.
What is Quona’s preferred exit route?
Our preferred exit routes include going public and acquisitions. One of our portfolio companies, IndiaMART, went public while SME Corner was acquired by Ambit Capital.
What investments have you made this year, and what have you planned for next year?
Last year, we made two investments in India and participated in five follow-on funding rounds.
We expect this momentum to continue this year as more startups leverage AI, DPI and embedded finance to drive innovation.
