Technology-driven solutions are playing a crucial role in expanding access to financial services, especially in emerging markets where financial inclusion remains a challenge, says Varun Malhotra, a Partner at Quona Capital. Founded in 2015 by Ganesh Rengaswamy, Jonathan Whittle, and Monica Brand Engel, Quona Capital aims to support this growth by investing in companies that leverage technology to create accessible, affordable, and impactful financial solutions. Their target regions include South and Southeast Asia, Latin America, and MENA.
Quona Capital has raised approximately $750 million across multiple funds, with their current focus on deploying capital from their $332-million third fund. They typically invest between $4 million and $6 million in a company, with the flexibility to invest up to $10 million depending on the opportunity and the company’s growth stage. They primarily focus on early-stage companies, investing in seed to Series A rounds and maintain a long-term perspective, staying invested for 8-10 years.
In addition to providing capital, Quona Capital also offers mentorship to founders, helping them navigate the unique challenges of building businesses in emerging markets. They work closely with founders, offering guidance, global networks, and insights drawn from their extensive experience across regions.
Some key trends shaping the fintech landscape that Quona Capital is observing include a convergence of AI and financial services, which has the potential to reshape workflows for efficiency and personalization. They also highlight digital public infrastructure (DPI) as a key area, especially in India, where advancements in DPI related to credit on UPI and embedded finance can improve financial inclusion in the coming years.
Quona Capital’s preferred exit routes include going public and acquisitions. They have made investments in companies such as IndiaMART and SME Corner, which have followed these exit routes. Looking ahead, Quona Capital expects to continue investing in startups that leverage AI, DPI, and embedded finance to drive innovation and improve access to financial services in emerging markets.
