Lark Finserv has unveiled API-driven credit infrastructure for lending against securities (LAS). The platform enables WealthTech firms, brokers, and investment apps to offer their clients instant liquidity against mutual funds within their own digital ecosystem, marking a first-of-its-kind initiative in the country.
Until now, investors seeking liquidity were often forced to redeem their mutual fund holdings prematurely or approach traditional lenders outside their investment platforms, a process that disrupted the customer journey and compromised long-term wealth creation.
Lark Finserv’s new system seeks to resolve this challenge by embedding credit facilities directly into existing WealthTech infrastructure, allowing investors to borrow against their portfolios without the need to liquidate assets.
Rohit Pateria, Founder and Chief Executive Officer, Lark Finserv, said, “Lending against securities represents a $100 billion-plus opportunity in India. Our launch is about more than just providing credit; it’s about reshaping how liquidity flows within the WealthTech ecosystem. By establishing an API-first LAS infrastructure, we have enabled platforms to retain investors, grow assets under management, and provide credit as a seamless service.”
The LAS infrastructure is designed as a multi-lender, plug-and-play marketplace, connecting WealthTech platforms with multiple lending partners at once. This neutral model ensures broader credit access, competitive pricing, and resilience by removing reliance on any single lender.
With India’s mutual fund industry now surpassing Rs 60 lakh crore in assets, the need for sustainable liquidity solutions has become critical. Investors frequently redeem their mutual funds when in need of cash, undermining compounding benefits and long-term returns.
Lark’s LAS offers a viable solution by allowing loans against mutual funds and a wide range of other securities, including listed equities, corporate bonds, REITs, ETFs, and alternative investment fund (AIF) units.
The system is designed to be simple and efficient, enabling WealthTech platforms to integrate quickly and offer paperless, instant credit directly through their applications.
For investors, this means faster access to funds without having to sell or exit their investments, while wealth managers and fund houses benefit from stronger long-term growth and asset retention.
Industry observers note that embedded finance has already transformed payments and insurance in India, and Lark Finserv’s LAS initiative could play a similar role in wealth management. By keeping portfolios invested while simultaneously providing access to credit, the company is positioning itself at the forefront of what it calls “WealthTech 2.0”.
Looking ahead, Lark Finserv aims to expand its credit infrastructure beyond traditional securities to include tokenised assets, real estate, and other emerging classes, ultimately building a comprehensive credit operating system for India’s investment ecosystem.
The company has rapidly established itself as a leading provider of credit infrastructure for wealth platforms, offering technology-driven solutions that combine liquidity with long-term wealth creation.
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