FinTech in India

FinTech or financial technology has emerged as a relatively new industry in India.[1] FinTech is an industry comprising companies that use technology to offer financial services. These companies operate in insurance, asset management and payment etc.[2]

Market size and growth

According to the report of The National Association of Software and Services Companies (NASSCOM), India has a presence of around 400 companies in the fintech space, with an investment of about $420 million in 2015. The NASSCOM report also estimated the fintech software and services market to grow 1.7 times by 2020, making it worth $8 billion.[3]

The India FinTech Awards (IFTA) is a platform to celebrate and recognise the best innovations from fintech companies.

The Indian fintech landscape is segmented as follows – 34% in payment processing, followed by 32% in banking and 12% in the trading, public and private markets.[4]

UK-banking giant Barclays is expected to enter the fintech space in June 2016. Other accelerators and incubators tapping the startup ecosystem include PayPal’s Star Tank, Yes Bank’s collaboration with T-Hub, among others.[5] Visakhapatnam (Vizag) is being developed as fintech hub and the local government of Andhra Pradesh, had opened fintech Valley Tower to promote the investments in this area[6]

India FinTech Forum represents the Indian fintech firms as part of the Global FinTech Hubs Federation (GFHF).

Funding

Some venture capital firms like Saif Partners, have invested in fintech companies including Paytm, Capital Float and Walnut. BankBazaar, an online marketplace for comparison of financial products raised $60 million by Amazon in Series C round; MobiKwik, a digital wallet secured $25 million in Series B round; Fintellix, a financial analytic startup raised $15 million in Series C round and Itzcash, a payment startup offering remittance solution secured $15 million in Series C round.[3] Rubique, an online financial marketplace facilitating retail loan, small business loan & credit card, is backed by venture capital firm Kalaari Capital.[7] Lendingkart Group, an online lending marketplace for personal loans, to boost its technology and data analytics capabilities. The company raised $32 million (around Rs 205 crore) in its Series B funding round led by Bertelsmann India Investments.[8]

References

  1. ↑ "Fintech sector proving to be talent magnet". The Economic Times. 26 April 2016. Retrieved 22 May 2016.
  2. ↑ "FinTech Gaining Momentum in India with Paytm's Payment Banks". 2 May 2016. Retrieved 22 May 2016.
  3. 1 2 "Fintech revolution in India: Tech-finance collaboration has fired up entrepreneurs". The Financial Express. 23 May 2016. Retrieved 23 May 2016.
  4. ↑ "India emerging as fastest-growing market for fintech software products". ZDNet. 3 May 2016. Retrieved 22 May 2016.
  5. ↑ "India emerging a hub for fintech start-ups". Business Standard. 18 May 2016. Retrieved 23 May 2016.
  6. ↑ "Fintech Valley Vizag". fintechvalleyvizag.com. Retrieved 2017-02-02.
  7. ↑ "Online financial marketplace Rubique looks to partner state-run banks". The Economic Times. 16 Feb 2016. Retrieved 25 May 2016.
  8. ↑ "Fintech firm Lendingkart acqui-hires loans marketplace KountMoney". Techcircle.in - India startups, internet, mobile, e-commerce, software, online businesses, technology, venture capital, angel, seed funding. 2016-10-18. Retrieved 2017-03-07.
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