Embedded API-first LAS platform allows wealth-techs to offer instant loans against mutual funds, unlocking liquidity and improving long-term industry growth
FinTech BizNews Service
Mumbai, September 12, 2025: This launch enables wealth-tech platforms, brokers, and investment apps to help their clients easily access liquidity against mutual funds directly within their app ecosystem, marking a first in India.
Lark Finserv aims to transform the Credit-Liquidity Equation for investors. Previously, investors seeking liquidity from their holdings had to either redeem their mutual funds early or look outside their wealth-tech platform for loans from traditional lenders. This practice disrupted the customer journey and negatively impacted the long-term growth potential of the investment.
Lark is poised to change this through its full-stack technology. By integrating its API-first LAS Tech Stack with existing investment infrastructure, Lark allows wealth-tech platforms to provide instant credit against investments, including mutual funds. Investors can now borrow quickly and securely against their portfolio without needing to redeem or exit.
“Lending against securities represents a $100+ billion opportunity in India,” said Rohit Pateria, Founder & CEO of Lark Finserv. “Our launch is about more than just adding credit; it’s about changing how liquidity flows into the wealth-tech ecosystem. By creating an API-first LAS infrastructure, we’ve made it possible for wealth platforms to keep investors engaged, grow assets under management, and provide credit as a service that feels integrated.”
Lark’s LAS infrastructure is designed as a multi-lender platform, acting as a neutral, plug-and-play marketplace that seamlessly connects wealth-techs with multiple lending partners at once. Instead of being tied to the policies or balance sheet of a single lender, this model unlocks wider credit coverage to serve investors across diverse risk tiers, fosters competitive pricing by giving platforms and investors more options, and ensures resilience and scale by eliminating single-point dependencies while allowing lenders to compete to meet demand.
India’s mutual fund industry has surpassed ₹60 lakh crore in assets, with millions of investors entering the market each year. However, a significant problem persists; investors often redeem mutual funds when they need liquidity, disrupting their compounding journey and lowering long-term returns. Lark’s LAS will serve as a robust solution for the industry. By allowing loans against mutual funds, Lark offers wealth-techs an effective way to prevent this loss. Investors gain liquidity while keeping their investments intact; platforms maintain higher assets under management, and fund houses benefit from stronger long-term growth. “Preventing premature redemption is the biggest use case for LAS in India’s wealth-tech ecosystem,” adds Rohit. “We believe that lending against mutual funds alone can significantly drive industry growth and support long-term capital formation.”
Lark’s LAS does not only help in investment securities against mutual funds, it encompasses all types of investment securities available to retail and high-net-worth investors. From listed stocks to corporate bonds, and from REITs/ETFs to private-market AIF units, Lark’s infrastructure supports a variety of assets for financing. This extensive coverage allows wealth-tech platforms to cater to different investor profiles, whether they are first-time mutual fund investors, high-net-worth individuals holding corporate shares, or institutional clients invested in REITs or AIFs.
Lark is changing the lending landscape with a straightforward credit system that makes Loans Against Securities (LAS) a natural addition for wealth-tech platforms. With fast API integrations, these platforms can provide instant, paperless credit for investors directly in their apps, without needing to redirect users. For investors in India, this means they can access money without selling assets. They get immediate funds while keeping their portfolios fully invested.
Just as embedded finance changed payments and insurance, Lark is establishing a new space in Wealth + Credit. This drives the next wave of change in wealth-tech. By linking wealth platforms and lenders, Lark allows investors to borrow as needed without disturbing their investments. It boosts market strength by keeping assets under management invested, which supports both equity and debt markets. Through its API-first, multi-lender setup, Lark brings credit innovation at scale and encourages growth in the ecosystem where platforms keep customers, lenders broaden their reach, and investors remain in control.
Lark is not just providing credit; it is creating a new financial foundation for Wealth-Tech 2.0 in India.
Lark’s launch marks the beginning of a larger mission to build the credit operating system for India’s investment ecosystem. In the long run, it envisions extending its liquidity solutions into tokenized securities, real estate, and emerging asset classes, shaping a future where credit is seamlessly embedded across the financial internet.
