Indian fintech ecosystem showed 500 percent growth in the past ten years. The homegrown fintech startups have raised around 31 billion USD. The Prime Minister, Narendra Modi mentioned that India’s UPI is the great force driving India’s fintech sector towards success. The country now accounts for more than 50 percent of global digital transactions. Compared to back then, India has made huge progress in the fintech sector. The fintech services are used across various areas including healthcare services, skill learning, and digital education.
AmbitionBox mentioned in a report that India now has around 398 fintech companies in India that have raised over $31 billion since 2014. The government is making all the necessary changes at the policy level. The Indian government announced the abolition of the Angel Tax and implementation of the Digital Personal Data Protection Act with the participation of a 1 billion USD fund to encourage research & development. At present, many other companies are using the technology and services from these startups to provide seamless experiences to their customers. The fintech sector is growing rapidly across India and here we are talking about the best fintech startups that enable India to enter the global market.
Instamojo
Instamojo is a cloud-based fintech platform that provides solutions including payment processing, and wealth management. The startup uses advanced technologies to offer fintech solutions for the D2C e-commerce business. The platform also has transaction monitoring, analytics, CRM, and shipping options. The startup has secured over 12.2 million USD across nine funding rounds since its inception in 2012, including the amount raised from Mastercard during the series C funding round. The company has 15 institutional investors including Kalaari Capital, 500 Global, and Gunosy Capital. The fintech startup faces competition from other companies in the same segment such as Shopify, and Weebly.
InCred
The company provides an online lending platform that offers various lending solutions including personal loans, SME loans, and education loans. The startup claims to have the whole loan application process online. The platform provides an annual interest rate based on the loan terms and amounts. The company allows users to repay loans through bank transfers, credit cards, and wallets. The startup has raised around 318 million USD across multiple funding rounds since its inception. The company has investors including FMO and competes with other startups in this field like DMI Finance, and Credit Saison.
Lendingkart
lendingkart is a digital lending platform that provides business loans. The platform helps companies select from various loaning options such as SME loans, working capital loans, and loans for working women. The platform uses machine learning algorithms and big data analytics tools to detect fraud and identify risks. The company claims to disburse loans in 72 hours. The startup has secured around 228 million USD across all its funding rounds, this includes $12 million raised during its conventional debt funding round in June. The company has investors including FMO, India Quotient, Bertelsmann India Investments, Fullerton Financial Holdings, and more. Lendingkart faces competition from companies including Kinara Capital, InCred, and NeoGrowth.
MoneyTap
MoneyTap developed an app-based personal credit line for consumers. The company offers an online credit card with an approved credit line that can be used for education loans, wedding loans, medical loans, and more. The fintech platform transfers the funds to a registered bank account once the user Is verified and approved. The startup secured $93.3 million across five funding rounds since its inception in 2015, including a conventional debt funding round in 2020 led by Vivirti Capital and Credit Saison. MoneyTap competes with INDIE by IndusInd Bank and other personal line of credit offering platforms.
Paytm
Fintech startup Paytm is a wallet-enabled payment processing app that provides solutions for individuals and businesses. The platform offers mobile recharge, bill payments, travel bookings, hotel bookings, and other services. The startup also provides consumer and merchant payment solutions with POS software and billing software. Paytm also enables small businesses and provide loan disbursement services. The startup has secured over $3.48 billion across multiple rounds since its inception, including the latest funding round of $1.26 million. The company receives investments from Softbank Vision Fund, Alibaba Group, and Any Group.
Pine Labs
Pine Labs is a payment solution providing a platform for merchants and businesses. The company offers hardware and software-based payment terminals, working capital loans, and other services. The startup also has loyalty and gift card solutions, and a platform to accept various payment methods like BNPL. The platform offers several services to help businesses grow and enhance their operations. The startup claims to provide solutions for businesses across grocery stores, hospitals, electronics, and more. The Noida startup secured $2.2 million from Founders Global and angel investors in its series F funding round. It faces competition from other companies like Flutterwave and Razorpay.
PolicyBazzar
Insurance solution provider Policybazzar is one of the leading insurance tech companies. The startup provides various life insurance and general insurance plans including car insurance. The company also helps with policy renewal, cancellation, and claim settlement. The platform enables small businesses to compare financial policies and products. The company secured $616.6 million in funding across multiple funding rounds, including a $75 million round a year ago. The startup faces competition from insurance tech platforms such as InsuranceDekho, RenewBuy, and Turtlemint.
Razorpay
Razorpay provides payment processing solutions for businesses. The company offers innovative fintech solutions like payment gateways, automating banking operations, working capital loans, and more. The platform supports multiple payment methods such as net banking, wallets, UPI, and credit or debit cards. The company also offers business banking services in partnership with other banks. The startup has secured around 742 million USD since its inception, including $375 million raised from Alkeon Capital Management, Lone Pine Capital, and TCV in 2021. The company faces competition from Juspay, Pine Labs, and Flutterwave.
Shiksha Finance
This fintech startup provides loans for education-related purposes like working capital, educational fees, and infrastructure development. The platform provides two main services: asset finance and study loans. The company has raised around $33.9 million in funding across multiple rounds. The startup also secured $4.24 million from its existing investors. The startup has investors including Zephyr Management, Michael and Susan Dell Innovation, and Village Capital. The lending platform competes with other educational loan lending platforms such as Auxilo, Avanse, and Eduvanz.
ZestMoney
Fintech startup ZestMoney provides an online platform for point-of-sale financing. The company enables users to buy products and pay the price in periodic installments. The platform also provides financing services by completing KYC on the portal. ZestMoney has raised over 140 million USD across ten funding rounds since its inception, including a $3.78 million series C funding round led by Omidyar Network India, Wuona, and Flourish. The company competes with other companies in the same sector including MobiKwik, Simpl, and Ezzetap.
Conclusion :
The fintech sector is rapidly growing with the revolution of the internet. Artificial intelligence and advanced technologies are being used everywhere including electronic payment systems, web-based shopping, portable banking, and bank digitization. The Indian economy has improved a lot due to the enhancement in the fintech sector, as a variety of services are being provided such as digital payments and digital wallets. The country has over 398 fintech companies that have raised around 31 billion USD in the past ten years.
The government of India has been launching several schemes in the past few years including different initiatives and backing schemes to promote the Indian startup ecosystem. India has around 115 unicorns and 112 unicorns making it the third largest startup ecosystem. The startup data intelligence, the kredible mentioned that these fintech startups have raised over 31 billion USD in the past few years. Many other fintech startups including Paytm, Razorpay, and more secured a good amount of funds. The Global fintech ecosystem is predicted to grow at a huge CAGR in the next five years.
