With the recent evolutions in technology and innovation in the businesses the shape of traditional financial services has undergone a radical transformation on the global front. In 2015, more than 12,000 start-ups sprouted in the Fintech space across the world with a massive investment of $19bn. The industry is continuing to grow with a booming trajectory, with the global Fintech software and services sector predicted to touch $45bn by 2020.
India has created an ecosystem that provides start-ups an opportunity to exponentially grow into big businesses. Fintech start-ups are delivering innovation that was previously difficult to achieve. The Indian Fintech market is poised to touch $2.4bn by 2020 from $1.2bn in 2016.
Indian economy, which is significantly cash-driven, has taken advantage of the Fintech opportunity. With a range of options, including e-wallets, lending and insurance, the variety of services provided in this sector are immense and have changed the way consumers carry out their daily transactions. Fintech in India is especially advantageous, since the country boasts of an unrivalled youth demographic which is rapidly growing. India has now raced to the third spot globally in the fintech startup ecosystem in terms of valuation. Furthermore, smart phone penetration has likely witnessed an upsurge with more than 500 million internet users with 95% of these users accessing the net through a mobile phone. The financial services market in India is primarily untapped, with 40% of the population having no association with any bank and more than 80% of the transactions carried out through cash. This represents an opportunity for Fintech start-ups to massively spread their wings in different segments.
Listing down 5 Fintech Startups to look out for that are have made strides in the growing Indian Economy:
Shubh Loans aims to democratize credit for millions of borrowers in India, who are not yet a part of the formal credit system and expand the availability of fair and transparent credit. It is building the next generation credit assessment, lending and risk management platform. Armed with real-time analytics and credit reports based on alternative data, it enables lenders to access unserved and underserved market segments. Shubh Loans has raised a funding of 34 crores from Omidyar Network India and also received NBFC license from RBI.
PaisaDukan, a solely owned market place of BigWin Infotech, has come into existence as a matchmaker of the FinTech world. It is operating in the domain of Peer to Peer (P2P) Lending in order to curb the advent of Financially Excluded India. They believe in transferring maximum benefits to their customers. They are achieving the same by, changing the game of monopoly in the credit market, not maintaining our own balance sheets, which results in no income on the interest between two parties, providing legal and recovery support, evaluating credit risk by a proprietary algorithm of generating credit score for each of the loan project, providing loans for all legal age groups as well as all loan requirements. PaisaDukan, strive to provide a highly secured customer experience with completely transparent, hassle free, simple to use digital platform for all borrowing and investing needs.
mPokket is a prominent digital lending platform offering short term personal loans to individuals in a hassle-free and seamless manner, eliminating the need for the time-consuming as well as the paper-heavy process of obtaining loans from traditional sources. Any college student in India is eligible to borrow money instantly using the mPokket mobile app. mPokket has addressed the cash crunch woes of numerous students in the last couple of years. mPokket aims to become one of the top 10 technology-driven lenders in the country in the next 5 years. The company further looks forward to ensuring cost-effective delivery of credit to the segments of Indian populace which are ignored by the formal banking sector.
FYERS is India’s fintech stock broking firm and it is known for its superior trading platforms. The company is primarily focused on solving the problems faced by traders & investors in India with their platform centric approach. Their business model is fully online where anyone can open an account for free and get started without paying any fixed charges. Unlike any other stockbrokers in India which outsource their technology to third party software vendors, FYERS builds their trading platforms in-house. One of their signature platforms, Thematic investing is a menu-driven investing platform which makes it easy for millennial to invest their savings in an efficient & hassle-free way.
India Transact services are an omni-channel merchant payment solutions company, with an aim to simplify the process of transacting and merchant acquisition, in addition to providing other value added services. Their team consists of highly passionate individuals who consistently strive towards providing customers with innovative and best-in-class payment solutions through our products and services. Headquartered in Mumbai, we are a wholly-owned subsidiary of AGS Transact Technologies Ltd., India’s leading end-to-end payment solutions provider with core operations in Banking Automation Services, Banking Payment Solutions, and other Automation Solutions.
2020 is going to be a good year for India’s Fintech story. What this means to the end consumer is that everything will continue to be more accessible - access to money, access to credit or access to insurance. At just a click away, from anywhere and everywhere.