Introduction
Fintech organizations focus on technology growth to serve the banking and financial industries. FinTech stands for Financial Technology. We now all have mobile banking on our phones, which allows us to do all of our banking transactions from the comfort of our own homes or anywhere else.
Financial software can also be used to calculate EMIs and insurance premium quotes. Fintech businesses have had a tremendous impact on our economy and the way we make payments. The way we do business has changed as a result of the payment system. Here are a few FinTech companies that are creating waves in the finance business and expanding into new markets.
It is essentially an economic industry made up of businesses that employ technology to improve the efficiency of financial services. Individuals mostly utilise them to assist with mobile payments, insurance, bitcoin and blockchain technology, stock trading, digital lending and credit, budgeting, and a variety of other tasks. The financial services business is being disrupted by tech-focused startups and other new market entrants.
Fintech Startups In India – An Overview
India is one of the world’s fastest-growing Fintech markets. Over 67 percent of India’s 2,100+ FinTech companies were founded in the last five years. The Indian Fintech market is presently estimated at 31 billion dollars and is predicted to expand at a CAGR of 22% to 84 billion dollars by 2025.
At a CAGR of 20%, the value of Fintech transactions is expected to increase from US$ 66 billion in 2019 to US$ 138 billion in 2023. Payments, Lending, Wealth Technology (WealthTech), Personal Finance Management, Insurance Technology (InsurTech), Regulation Technology (RegTech), and other subsegments make up the Indian Fintech sector ecosystem.
Since 2016, the Indian financial industry has seen more than $10 billion invested in domestic FinTechs. As of May 2021, 224 banks had signed up for India’s United Payments Interface (UPI), which had recorded 2.6 billion transactions worth $68 billion, a 15x increase over the same period in 2018.
Fintech Startups In India – All Bark Or Powerful Bite?
While the Payments and Alternative Finance segments accounted for more than 90% of the sector’s investment flows in 2015, there has been a significant shift in investment distribution across sectors since then.
Financial technologies in India, such as FinTech SaaS and InsurTechs, are expected to receive total investments of $145 million and $215 million in 2020, respectively, marking a 4-5X increase over their financing flow in 2015. With domestic and multinational businesses (Paytm, Walmart, and Google) continuing to dominate the Indian financial industry, UPI is likely to grow rapidly, with a heavy focus on the expansion of the payments infrastructure through investments.
With over 15 Neo-banks now operating in India, several of which are in the development or beta stages, India is emerging as a crucial area for growth in the space. The Indian financial sector has been rapidly expanding, with some private banks working with Fintechs to investigate synergies and better service delivery methods.
List of financial startups in India in India
Lendingkart was launched in 2014 by Harshvardhan Lunia and Mukul Sachan as an online lending platform. Lendingkart Finance provides small and medium-sized enterprises in India with working capital loans and corporate loans. They give capital entirely online, in a quick and painless process that requires no documentation and no collateral.
The company’s purpose is to make capital investment available at their fingertips so that entrepreneurs may focus on their businesses rather than worrying about cash flow shortages. They are currently based in Ahmedabad, Bangalore, and Mumbai, but work throughout India.
MoneyTap is the first app-based credit line in India. Bala Parthasarathy, Kunal Verma, and Anuj Kacker founded MoneyTap in 2015. MoneyTap provides small-to-medium cash loans, as well as fast mobile lending, low-interest rates, and a variety of EMI options. Anyone with a smartphone and a PAN can use the app to verify their qualifying limit in less than 15 minutes.
Except for certain key papers required to comply with the partner bank’s KYC legislation, the entire process is fully paperless. The intriguing thing is that interest rates are only applied to the amount you borrow, not to your entire agreed cap. MoneyTap exclusively works with RBI-regulated financial institutions in India, and they each have their own NBFC license.
Instamojo was founded by Sampad Swain, Akash Gehani, and Aditya Sengupta in September 2012. To help you grow your business, Instamojo collects fees, builds free online stores, transports goods, obtains financing, and more.
Microentrepreneurs, start-ups, small and medium-sized businesses, and other small and medium-sized businesses use Instamojo’s suite of services, including payments, free online stores, logistics, credit and finance, and more, to start, market, run, and expand their businesses instantly via mobile and web platforms. Instamojo provides tailored business solutions to help a company grow online.
Razorpay is an Indian payment solution that allows businesses to receive, process, and distribute payments through its suite of products. It supports all payment methods, including credit card, debit card, net banking, UPI, and common wallets, such as JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp.
Harshil Mathur and Shashank Kumar founded Razorpay in 2014. From a single platform, businesses can manage the marketplace, streamline money transactions, collect regular fees, exchange client invoices, and get working capital loans. Its services are used by thousands of customers since it allows an online business to collect, process, and distribute digital payments using numerous methods such as debit cards, credit cards, net banking, UPI, and prepaid digital wallets. It is one of Bangalore’s largest fintech firms.
PayTM, India’s largest payment firm was formed in 2010 and provides users with multi-source and multi-destination payment options. They allow customers to send money from one bank account to another without incurring any fees, i.e. there are no fees. Its complete payment solutions have been used by over 8 million retailers. Vijay Shekhar Sharma founded Paytm, which is owned by One97 Communications and is licensed by the RBI. Users can purchase both physical and digital goods, as well as pay for DTH plans, bill payments, and cellphone recharges, using the Paytm app.
To develop its payment network on a worldwide scale, the company cooperated with Alibaba’s cloud computing subsidiary, ‘AliCloud.’ Berkshire Hathaway, SoftBank Group, and MediaTek are among their backers, and they even raised an unknown sum from Ratan Tata in March 2015. It is, without a doubt, India’s largest fintech firm.
Upstox offers financial services such as stock, mutual fund, derivatives, commodity, ETF, and digital gold investments. It offers 0% brokerage for equities transactions and up to INR 20 per order for intraday, commodities, and currencies, ensuring complete pricing transparency.
Ravi Kumar, Kavita Subramanian, and Srini Vishwanath, the creators of Upstox, invented the notion of making trading and investing easier and cheaper for fellow young Indians. The Mumbai-based fintech, which has more than 250 workers and is backed by industry titans such as Tiger Global and Ratan Tata, is aiming to make trading second nature for its consumers.
PolicyBazaar is an online insurance aggregator that allows users to compare packages from different insurers based on factors such as pricing, quality, and major advantages. It allows customers to compare insurance policies and choose the most suitable policy, which can be purchased either online or offline. Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar started PolicyBazaar in Gurugram in June 2008. They are just one of the many fintech startups that have sprung up in Gurgaon.
As of 2020, they have raised approximately $650 million. The online platform started as a pricing comparison site and an information hub for learning about insurance and related programs, before expanding to become an insurance marketplace.PolicyBazaar has partnered with insurance brokers, allowing it to obtain information directly from insurers such as pricing, benefit, and insurance coverage for customers to compare.
Bipin Preet Singh and Upasana Taku launched MobiKwik, an Indian fintech business, in 2009. Gurugram is the company’s headquarters. MobiKwik is a digital wallet that offers a variety of services including mobile and online payments, phone and DTH recharging, mobile transfers, online shopping, and more.
Users can keep up to INR 50,000 in a MobiKwik wallet, which can be used to recharge mobile phones, pay bills, and purchase across many channels. For ticket reservations and cash pick-up for bus tickets, its users can also use the partial payment feature. Sequoia Capital, NET1, and GMO Venture Partners are among MobiKwik’s investors.
MobiKwik has made it free to transfer money from your wallet to your bank account since demonetization. They used to charge 4% for a non-KYC compliant user and 1% for a KYC (know your customer) compliant user before demonetization. They currently have over 100 million subscribers in India, with many more on the way. Non-KYC users can send money to their bank account in amounts ranging from INR 1000 to INR 20,000. You can store up to INR 1,00,000 in your MobiKwik wallet once your KYC is completed.
Conclusion
Startups put a lot of effort into their products, marketing, and other business activities, but they overlook one critical aspect: cash. It is critical to keep track of one’s finances. Money is everything in business; you can’t manage a business if you don’t think about it. This list of the top Indian fintech companies should help you comprehend the latest developments in the financial industry and give you an idea of which fintech to keep an eye on in India.
