RocketPay raises Rs 10 crore to build loan recovery tech ahead of RBI's device-lock rules

RocketPay, a start-up that builds digital loan-collection systems for lenders, has raised Rs 10 crore in a round led by Sandeep Jain and Group, it was reported on Wednesday, October 14, 2026. IPV, LetsVenture, Launch Capital, AVNM Ventures and Navyug Global Ventures also invested, along with existing backer All In Capital. The company plans to use the money to move beyond collections into recovery technology for lenders, including the ability to remotely restrict phones and other devices bought on loan when borrowers default. The expansion comes ahead of new Reserve Bank of India rules on device locking that take effect on January 1, 2027.

India sells large numbers of smartphones, laptops and other gadgets on monthly instalments, and lenders have long looked for ways to enforce repayment on these small loans. Locking a financed phone remotely is one such tool, but it has been controversial because a phone is also how people make calls, pay bills and reach emergency services. RocketPay's raise is a bet that this tool will become a standard, regulated part of consumer lending.

The Reserve Bank has now set rules. Directions published on August 6, 2026 say lenders cannot use technology to restrict or disable a borrower's device to recover dues on loans unrelated to that device, such as personal, home or vehicle loans. For loans that financed the device itself, locking is allowed only if the loan agreement clearly permits it and the borrower receives the required notices and time. The restriction must be applied in stages, and essential functions such as incoming calls, SMS, emergency SOS and public safety alerts must keep working. The rules apply from January 1, 2027, so lenders must update their contracts, consent forms and collection software before then.

That deadline creates demand for companies like RocketPay, which can supply compliant locking and recovery systems to banks and non-bank lenders that do not want to build their own. The company says lenders using its platform manage loan books ranging from Rs 300 crore to Rs 16,000 crore. According to reports on the round, India sells more than 85 million devices on instalments each year, a market projected to grow 10 to 12 percent a year between FY26 and FY30.

For borrowers, the rules and the technology cut both ways. Clear limits protect people from having an unrelated loan used as a reason to cut off their phone. At the same time, those who buy a phone on credit should read the loan agreement closely, since it may allow the lender to restrict the device after a default.

Short-term: RocketPay will build out its recovery products and sign more lenders as they prepare for the January 2027 deadline.

Long-term: If device locking becomes a standard, regulated feature of gadget loans, it could make lenders more willing to finance phones for first-time borrowers, while the RBI's safeguards limit misuse.

Who is affected: Banks and non-bank lenders that finance devices, borrowers who buy phones and laptops on EMI, phone makers and retailers, and fintech companies offering collection tools.

Questions and Answers