Yenmo

What do they actually do

Yenmo runs a mobile app in India that lets retail investors take small, secured loans by pledging their mutual fund units instead of redeeming them. The company advertises rates starting around 10.3% and positions this as cheaper than typical unsecured personal loans; the app is available on iOS and Android (product page, homepage).

Customers complete KYC in‑app, link their mutual fund folios, and place a pledge. The pledge is recorded with SEBI‑regulated transfer agents (CAMS/KFin) so the customer keeps ownership while units are blocked as collateral; Yenmo then sets up autopay for interest, disburses quickly, and allows principal repayment anytime with no EMIs or foreclosure fees (product page).

Who are their target customer(s)

• Retail mutual‑fund investors needing short‑term cash: Redeeming units triggers capital gains and forfeits future market upside; other liquidity options can take days to settle (product page).
• People facing one‑off urgent expenses (medical, school fees, travel): Would otherwise use high‑rate personal loans or credit cards, or deal with slow and paperwork‑heavy loan processes (Fondo coverage, product page).
• Long‑term SIP/discipline‑focused investors: Redeeming to raise cash interrupts SIPs and can hurt long‑term returns.
• Borrowers who want flexible repayment: Rigid EMI schedules and prepayment/foreclosure charges make short‑term borrowing costly or inflexible; they prefer pay‑as‑you‑use interest with no foreclosure fees (product page).
• Mutual fund distributors/advisors (channel partners): They lose AUM and commissions when clients redeem for liquidity; need a way to provide credit while retaining client assets (partner page).

How would they acquire their first 10, 50, and 100 customers

• First 10: White‑glove onboarding via founders’ and YC networks: handhold KYC, folio linking, and pledging over phone/WhatsApp; fund initial loans internally to control disbursal and reinforce the “no redemption, instant cash” benefit (product page).
• First 50: Run small pilots with select mutual‑fund distributors: simple referral sign‑ups, a short client script, and a modest referral fee or discounted first‑loan rate; use this to harden pledge flows with transfer agents and standardize checklists (partner page).
• First 100: Combine distributor pilots with app‑store optimization and in‑app referrals; automate KYC/folio detection/pledge steps to cut onboarding time. Secure one or more NBFC/bank funding lines and use YC/PR to build credibility with advisors and investors (YC listing).

What is the rough total addressable market

Top-down context:

India’s mutual‑fund industry AUM was ₹65.74 lakh crore as of Mar‑2025, with ~63.2% held by individuals, implying ~₹41.55 lakh crore in retail AUM—the relevant collateral base for loans against mutual funds (AMFI FY2025).

Bottom-up calculation:

TAM ≈ retail AUM × share pledged at a time × average LTV. If ~10% of retail AUM is pledged and average LTV is ~50%, outstanding loans would be ~₹2.08 lakh crore; for an early fintech at 1–3% pledged and 50% LTV, ~₹0.21–0.62 lakh crore (AMFI FY2025, LTV ranges, ET explainer).

Assumptions:

• Average blended LTV ~50% across fund types over time (Paisabazaar).
• At any time, only 1–10% of retail AUM is pledgeable/pledged due to eligibility, behavior, and distribution limits.
• ELSS lock‑ins, small folios, and scheme ineligibility reduce the effective base from headline AUM (AMFI FY2025).

Who are some of their notable competitors

• Volt Money: Fintech offering fully digital loans against mutual funds (and stocks), with instant/overdraft‑style usage and advertised rates around 9–11%—a direct app‑based alternative to Yenmo (site).
• Smallcase: Investment platform that lets customers pledge mutual funds for loans with rates around 10.25%, competing on brand trust and integrated investing‑to‑credit flow (site).
• Bajaj Finserv: Large NBFC with an established ‘loan against mutual funds’ product, broad distribution, and deep funding capacity, competing more on reach than app UX (site).
• State Bank of India (SBI): Major bank offering loans against mutual fund units via online channels, competing on scale, regulatory trust, and low‑cost funding (site).
• Jupiter: Neobank/fintech listing loans against mutual funds via partner lenders, competing on in‑app experience plus partner‑backed capital lines (site).