Fintech Companies : Leading India’s Start-up Ecosystem
Fintech Companies continue to be an attractive option for entrepreneurs in the Start-Up ecosystem.
- As per the data from Tracxn (a company that provides market intelligence data for private companies), fintechs have received over 15% of the total equity funding into start-ups in FY24 so far.
- Fintech, a combination of the terms “financial” and “technology,” refers to businesses that use technology to enhance or automate financial services and processes.
- FinTech Ecosystem: India remains a global leader in fintech, 3rd highest globally after the US and UK, having a combined valuation of over USD 155 billion.
- Nearly a third of the soonicorn universe (soon to be unicorns) comprises fintechs.
- As per Startup India, an initiative by the Ministry of Commerce and Industry, the market size of India’s fintech industry is expected to reach USD 150 billion by 2025.
- Types:
- Digital Payments: These offer digital payment solutions, such as mobile wallets, online payment gateways, and peer-to-peer (P2P) payments. Ex-Phonepe, Paytm etc.
- Alternative Lending: They are also known as marketplace lending or Peer-2-Peer (P2P lending), occurring on online platforms that connect borrowers overlooked by traditional lenders with investors looking for high-yield investments. Ex: Lending Club, Prosper, PayPal Working Capital, GoFundMe etc.
- Insurance: These offer digital insurance solutions, such as health insurance, life insurance, and car insurance. Ex-Digit Insurance, Policybazaar etc.
- InvestmentTech: These offer digital investment solutions, such as stock trading, mutual funds, and cryptocurrency trading. Ex-Zerodha, Groww etc.
- Others types include Crop loan risk management (Eg: Satsure), online fraud detection (e.g. Tutelar), debt management (Debt Nirvana) and Banking-as-a-Service Platform (e.g., FidPay)
