Bengaluru-based RocketPay has raised Rs 10 crore to scale its financed device recovery services. The funding supports a shift toward managing the lifecycle of EMI-financed smartphones ahead of new RBI guidelines effective January 2027.
Bengaluru-based collection startup RocketPay has secured Rs 10 crore in a new funding round to transition its business model from standard digital collections to financed asset recovery. The investment round saw participation from investors including IPV, LetsVenture, Launch Capital, AVNM Ventures, Navyug Global Ventures, and All In Capital. The company, founded in 2022, will use these funds to build the infrastructure needed to manage the recovery process for electronics, specifically smartphones financed through EMI schemes.
The timing of this expansion aligns with upcoming Reserve Bank of India (RBI) rules regarding device-locking technology, which are set to take effect on January 1, 2027. Device-locking involves software installed on a financed smartphone that restricts specific functions if a borrower misses loan payments. By raising capital now, RocketPay is positioning itself to help lenders navigate these new, stricter compliance requirements. Under the incoming RBI framework, lenders can only apply partial restrictions after 30 days of delinquency and full restrictions after 60 days. Furthermore, the rules mandate that lenders must allow access to emergency services, such as calls and SMS, and must restore the device within one hour of receiving a payment.
RocketPay operates as an authorized partner for Trustonic, which uses technology from Google’s Device Lock Controller. This partnership allows lenders to remotely control device features. The company’s business model depends on integrating this technology for lenders who want to lower their bad loans. RocketPay reported that its revenue grew tenfold between the financial years 2024 and 2026, though it targets an annual recurring revenue run rate of Rs 100 crore by the financial year 2028. The company estimates that approximately 85 million EMI-financed devices are sold in India each year, presenting a large addressable market for recovery services.
For investors and observers, the key monitorable for RocketPay will be its ability to strictly follow the new RBI compliance standards. Any failure to adhere to the rules, such as failing to restore device access after payment or blocking emergency services, could lead to regulatory action and damage the company’s relationship with its lender clients. Additionally, the business relies heavily on its partnerships with technology providers like Trustonic and Google. If these technical partnerships face integration issues or changes in policy, it could impact RocketPay’s service reliability. Investors may also track whether the company can maintain its rapid revenue growth while operating in a sector that is becoming increasingly regulated and sensitive to consumer privacy concerns.