WHAT IS FINTECH?
Fintech (finance and technology) refers to modern software and technology used by a company that provides financial services. With the development of technology, the Fintech industry has developed into a digital marketplace for financial transactions.
They are mainly used for mobile banking services, investments, cryptocurrency, stock trading, paying bills, credit card services, and much more.
By using digital fintech services, the lives of the users become simple. They can easily make day-to-day transactions by using these services. One can quickly pay their monthly bill payments, transfer money to anyone, and purchase items using these digital services.
FinTech is an innovative idea that enhances financial services by providing technology solutions based on various business solutions.
How Demonetization boosts the fintech Industry
The central government announced to demonetize ₹500 and ₹1000 notes to clean up the black money in the system. It gives the FinTech industry a necessary boost to create a cashless economy. We will see a boom in the fintech sector and partnership with a bank.
The government also supports the fintech company with its unified payment interface(UPI) network, enabling a digital gateway platform such as BHIM UPI.
Here are the Top 5 fintech companies in India
Founder – Vijay Shekhar Sharma
Founded – 2010 ( Noida)
Valuation – $16 Billion
Service – Paytm is one of the largest financial tech firms in India. The company was founded in 2010 by Vijay Shekhar Sharma. They provide various services to their customers, such as transfer money, mobile recharges, bill payments, booking services, online shopping, investment services, and much more.
More than 150 million active users and more than 7 million merchants use their services across the country.
Funding – Multiple investment companies invest in Paytm, such as Alibaba Group, Tata Sons, Mountain Capital. In 2017, Paytm acquired $200 million from Softbank, and Berkshire Hathaway invested $356 million in funding in Paytm in 2018. In 2019, Paytm raised $1 billion from Ant Financials.
Founder – Sameer Nigam, Rahul Chari
Founded- 2015 (Bangalore)
Valuation – $ 5.5 Billion
Service – Nowadays, Digital Payment is used by billions of people. PhonePe offers a secure payment gateway to all its users through its unique UPI (Unified Payment Interface) solution.
It can be used for Online Shopping, Ticket Bookings, Money Transfers, Bill Payments, Mobile Recharge, and many more. Phonepe provides its services to over 550 cities and has more than 285 million users. The PhonePe App is available in 11 different languages.
Funding – PhonePe was founded in 2015, and then in 2016, Flipkart acquired PhonePe and rebranded it as PhonePe wallet. In 2020 PhonePe secured funding from Walmart for around $700 million. It takes its valuation to $5.5 Billion.
Founder – Harshil Mathur
Founded – 2014 ( Bangalore)
Valuation – $ 3 Billion
Service – RazorPay focuses on a digital payment gateway system. It enables digital payments through various modes like net banking, credit card, debit card, UPI, and prepaid digital wallets.
The company will use the fresh capital to boost its neo-banking business Razorpay X and its lending platform Razorpay Capital, which accounts for nearly 30% of its revenues.
Funding – RazorPay secured various fundings over the years from the companies such as Ribbit Capital and Tiger Global, around $75 million in 2019. It also raised $100 million led by Singapore’s sovereign wealth fund GIC and Sequoia Capital in 2020.
In the Latest Series E round funding, Sequoia India and Singapore-based GIC have secured $160 million, raising company valuation to $3 Billion.
4. Policy Bazaar
Founder – Yashish Dahiya, Alok Bansal, Avaneesh Nirjar
Founded – 2008 ( Gurgaon )
Valuation – $ 2 Billion
Service – Policy Bazaar is an Indian Insurance Aggregator. Policy Bazaar served many benefits such as Term Life Insurance, Health Insurance, Car Insurance, Retirement Plans, and Home Insurance.
Policy Bazaar provides the lowest price guaranteed for all its customer. The company has partnered with Insurance Broker Companies which provide comparison functions to compare different policies and insurance, and there is one crore trusted customer.
Funding – In 2013, the company secured Series A Funding of around $4.6 million from Intel Capital and Inventus Capital Partners.
In Series B, funding comes from Info Edge around $ 5 million, and In Series C, Tiger Global Management raises funds around $ 20 million. The latest financing of Softbank $ 200 million raises its valuation to $2 Billion.
Founder- Harshvardhan Lunia, Mukul Sachan
Founded – 2014 ( Ahmedabad)
Valuation – $ 257.5 million
Service – Lendingkart is an RBI registered NBFC (Non-Banking Financial Company) which provides loans to SME Companies. The company offers loans up to 1 crore in 24 hours. It also provides the most equitable interest rate of 1.25 % per month.
The company offered an unsecured Business Loan that does not require any collateral or security. Business loan repaid in monthly or weekly EMIs. If you received a loan from NBFC you could improve your Business Credit Scores. Lendingkart also gives loans to women to start their businesses.
Lendingkart had launched an omnichannel SaaS platform for its agent partners, called Lendingkart xlr8. It boosts its business across the country with its agent partners.
Funding – In 2017, Lendingkart received funding from Anicut Capital for around $ 4.7 million. In 2018, Series C funding raised over $ 87 million from Fullerton Financial Holding. It’s latest funding in debt funding from the FMO – Dutch entrepreneurial development bank is about $ 15 million.