India, Nov. 26 -- Fintech startup axiTrust has raised INR 23.5 Cr (about $2.6 Mn) in the seed round, led by General Catalyst, with participation from Atrium Angels, YAN Network, Supermorpheous, and a clutch of backers.

The money will help the startup develop comprehensive digital infrastructure that accelerates the adoption of surety bonds across India's banking, insurance, and procurement sectors.

Surety bonds are insurance-backed guarantees that assure a buyer or project owner that a business will fulfil its contractual obligations. Instead of blocking the capital as collateral, they allow companies to pay a premium to secure the guarantee, helping free up working capital and reduce financial strain.

Earlier this year, Inc42 exclusiv...