Fintech Startups Grow Significantly In India

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India, with a population of over 1 billion, is arguably a promising sector for Fintech. Before we continue, let us first explain what Fintech is. Simply put, Fintech is an industry of companies that use this technology to provide financial services. These companies work in areas such as financial management, insurance and electronic payments. Therefore, the presence of Indian fintech can help many people.

To carry out transactions in financial services that already exist in companies that are used for management, accounting and so on. Over the last decade, Fintech has taken over globally and is expected to increase in the future. India is following this world trend. With over 500 million investments in Indian fintech over the last three years, this segment only promises future developments.

Fintech Startups Grow Significantly In India

In 2015, approximately 12,000 Fintechs were launched worldwide, bringing the total investment to $19 billion. World investment by Fintech is expected to reach $45 billion by 2020, a sharp increase of 7.1Percent. According to a Nasscom report, there are approximately 400 Fintech companies in India with an investment of approximately $420 million. The report also shows that investment by Indian Fintech companies will increase to $2.4 billion by 2020.

With the protection of decisions of governments, banks and other financial companies, India has formed a favorable ecosystem for the development of Fintech. Fintech is essentially a cash-driven nation, helping to create disparities in personal finance management through payments and e-wallets.

A number of reasons contributed to the development of India’s financial technology. The number of internet users in India reached 465 million in June 2017. As more and more people depend on the Internet for various reasons, digitization is moving in a new direction. The government’s efforts to bring about a digital revolution through the “Digital India” campaign are connected with many opportunities for existing Fintech and start-ups.

Government Provisions

The government recognizes the potential of India’s financial technology and is constantly working to make regulations more friendly. In 2014, the government relaxed the provisions of the KYC process for customers who make online transactions and pay up to Rs 20,000 per month. The government is expected to create a new set of habits to revolutionize the P2p lending market.

To facilitate cashless transactions, the government is currently offering tax refunds to merchants for accepting at least 50% of electronic payments. “Jan Dhan Yojana” aims to provide bank accounts for all Indian citizens. Since the start of the scheme in 2014, 240 million bank accounts have been opened. Fintech startups can take advantage of this opportunity to provide easy and smooth transaction services.

Incubator and Accelerator:

The role of incubators and accelerators is not only to raise funds, but also to strengthen the financial industry. The incubator provides a non-mandatory environment for start-ups. India is one of the top five countries showing promising results for start-ups. The “Smart Cities” and “Digital India” initiatives were created to strengthen the country’s technology infrastructure. Banks and financial forums partner with incubators and accelerators to prove Fintech protection for start-ups.

India’s fintech ecosystem has evolved significantly with considerable efforts from financial forums, startups, governments, venture capitalists and regulators to create a favorable environment for safe and collaborative fintech discovery.

According to the Yes Bank report, transaction value for India’s fintech sector was estimated at approximately US$33 billion in 2016 and is expected to reach US$73 billion in 2020 growing at a five-year CAGR of 22Percent. The following 8 companies are some of the hottest Indian fintech startups that are impacting the fintech revolution in the country:

1. Bazaar Policy

Fintech India Bazaar Policy, originally founded in 2008 as a news portal to learn about insurance, now operates India’s leading digital insurance brand that collects and selects offers from all industries.

Bazaar Policy now accounts for 25 Percent of all life insurance policies issued in India and processes nearly 300,000 transactions per month. This startup was named one of the 2018 Fintech 100 Leading World Inventions by H2 Ventures and Kpmg.

2. Lendingkart

Founded in 2014, Lendingkart enables entrepreneurs to easily connect working capital financing options. The system uses big data analysis and technological tools to create a more efficient and effective way to evaluate a person’s creditworthiness.

After raising US$76 million in a Series C funding round in February 2018, the company is now looking to expand its reach to over 1,200 cities across India. Lendingkart was also named as one of the Top 100 Fintech World Inventions Leading Fintech 1008.

3. Paysense

Founded in 2015, Paysense is a consumer loan system that provides additional credit to users specifically. Paysense Emi, a personal line of credit that can be used to make instant purchases, whether online or offline, through affordable EMI packages. The company raised US$18 million in a Series B funding round in July 2018. Paysense is also one of the Fintech World’s 100 Leading Fintech Innovators 2018 this year.

4. Mobikwik

Founded in 2009, Mobikwik started as a digital payments company, providing a mobile-based payment platform and digital wallet. Since then, the startup has grown into a digital financial service system and has a customer base of 100 million. Mobikwik started offering digital insurance on its app last month, the startup’s third major launch this year.

The company aims to sell 1.5 million policies by the end of this fiscal year. Mobikwik acquired online mutual fund system Clearfunds in October to enter the wealth management space, and recently started offering digital lending services.

5. Capital Float

Owned by Capfloat Financial Services, Capital Float offers specialized credit and financial loans for businesses and leverages its own loan guarantee platform to lend to potential borrowers. The company claims to have more than 50,000 customers in 300 cities in India.

Capital Float is one of the best-funde fintech startups in India and has reportedly raise between US$100 and 150 million. In August, the company acquire Walnut, a startup that provides a mobile app that helps consumers manage their finances and track spending. Walnut claims seven million downloads on Android

6. Bank bazaar

Bankbazaar is an online financial marketplace that adds consumers access to special rates for loans, credit cards or personal finance products such as insurance policies, bank loans, and credit card offers. The company has operations in Singapore and Malaysia, and plans to expand to Australia by the end of this fiscal year. In October, the former deputy governor of the Reserve Bank of India, was appointe advisor to the company.

7. Incred Finance

The Incred Finance is a non-banking finance company that provides consumer loans, residential loans, education loans, small and medium business (SME) loans, and two-wheeled loans. Incred Finance uses technology and data knowledge to make borrowing fast, simple and hassle-free. Since its launch in 2016 until the end of October 2017, the company has lent nearly US$16 million to more than 1,000 borrowers.

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8. Razorpay

Founded in 2014, Razorpay is a payments company that provides payment solutions for online merchants in India. It enables online businesses to accept, process and cash out digital payments via multiple payment modes such as debit cards, credit cards, banking, UPI and prepaid digital wallets.

Earlier this month, Razorpay launched three new financial products and a community for Indian startups: Razorpay X (Business banking), Razorpay Capital and Razorpay Flash Checkout, along with The X Club. The company claims to serve 170,000 SMEs.

Well, those are some reviews that discuss Indian Fintech by using Fintech, it can be easier to make financial transactions because companies have used it so much and thank you.

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