The Indian fintech ecosystem has shown a growth of 500 percent in the last ten years. Domestic fintech startups have raised about USD 31 billion. 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 earlier, India has made great progress in the fintech sector. Fintech services are used in various sectors including healthcare, skill learning, and digital education.
AmbitionBox reported in a report that India now has around 398 fintech companies that have raised more than $31 billion since 2014. The government is making all the necessary changes at the policy level. The Indian government announced the abolition of angel tax and the implementation of the Digital Personal Data Protection Act along with the involvement of a USD 1 billion fund to promote research and development. Currently, many other companies are using the technology and services of these startups to provide a seamless experience 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 offers solutions including payment processing and wealth management. The startup uses advanced technologies to provide fintech solutions for D2C e-commerce business. The platform also has transaction monitoring, analytics, CRM, and shipping options. The startup has secured over USD 12.2 million in 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 Gunosi Capital. The fintech startup is facing competition from other companies in the same segment such as Shopify and Weebly.
Incred
The company offers an online lending platform that provides various loan solutions including personal loans, SME loans, and education loans. The startup claims that the entire loan application process is online. The platform offers annual interest rates based on loan terms and amounts. The company allows users to repay loans via bank transfers, credit cards, and wallets. The startup has raised around USD 318 million in multiple funding rounds since its inception. The company has investors including FMO and competes with other startups in the space such as DMI Finance and Credit Saison.
Lendingkart
Lendingkart is a digital lending platform that provides business loans. The platform helps companies choose from various lending 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 about USD 228 million across all its funding rounds, including $12 million raised during its traditional debt funding round in June. The company's investors include FMO, India Quotient, Bertelsmann India Investments, Fullerton Financial Holdings, and others. Lendingkart is facing competition from companies such as Kinara Capital, InCred, and NeoGrowth.
MoneyTap
MoneyTap has 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 the registered bank account once the user is verified and approved. The startup has secured $93.3 million in five funding rounds since its founding in 2015, including a traditional debt funding round led by Vivirti Capital and Credit Saison in 2020. MoneyTap competes with IndusInd Bank's Indy and other personal line of credit offering platforms.
Paytm
Fintech startup Paytm is a wallet-enabled payment processing app that offers solutions for individuals and businesses. The platform offers mobile recharges, bill payments, travel bookings, hotel bookings, and other services. The startup also offers consumer and merchant payment solutions along with POS software and billing software. Paytm also enables small businesses and provides loan disbursement services. The startup has received over $3.48 billion in 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 Annie Group.
Pine Labs
Pine Labs is a payment solution that provides 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 a range of services to help businesses grow and scale their operations. The startup claims to offer solutions for businesses in sectors such as grocery stores, hospitals, electronics, and more. The Noida-based startup received $2.2 million from Founders Global and angel investors in its Series F funding round. It is facing competition from other companies such as Flutterwave and Razorpay.
Policybazaar
Insurance solutions provider PolicyBazaar is one of the leading insurtech companies. The startup offers various life insurance and general insurance plans, including car insurance. The company also helps with policy renewals, cancellations, and claim settlements. The platform enables small businesses to compare financial policies and products. The company has raised $616.6 million in multiple funding rounds, including a $75 million round a year ago. The startup is facing competition from insurtech platforms such as InsuranceDekho, RenewBuy, and Turtlemint.
Razorpay
Razorpay provides payment processing solutions for businesses. The company offers innovative fintech solutions such as payment gateways, automated 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 raised around USD 742 million since its inception, including $375 million raised from Alkeon Capital Management, Lone Pine Capital, and TCV in 2021. The company is facing competition from Juspay, Pine Labs, and Flutterwave.
Education Finance
This fintech startup provides loans for education-related purposes such as working capital, educational fees, and infrastructure development. The platform offers two main services: asset finance and study loans. The company has raised around $33.9 million in funding across multiple rounds. The startup has also secured $4.24 million from its existing investors. The startup's investors include Zephyr Management, Michael and Susan Dell Innovations, and Village Capital. This lending platform competes with other educational 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 installments over a period of time. The platform also offers financing services by completing KYC on the portal. ZestMoney has raised over USD 140 million in ten funding rounds since its inception, including a $3.78 million Series C funding round led by Omidyar Network India, Vuona, and Flourish. The company competes with other companies in the same space, including MobiKwik, Simple, and Ezetap.
conclusion :
The FinTech sector is growing rapidly with the internet revolution. 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 growth of the FinTech sector, as a wide range of services are being provided such as digital payments and digital wallets. There are more than 398 FinTech companies in the country that have raised about USD 31 billion in the last ten years.
The Indian government has been launching several schemes including various initiatives and support schemes to boost the Indian startup ecosystem in the last few years. India has around 115 unicorns and 112 unicorns making it the third largest startup ecosystem. Startup data intelligence, The Credible mentioned that these fintech startups have raised over USD 31 billion in the last few years. Several other fintech startups including Paytm, Razorpay, and others have secured a good amount of funding. The global fintech ecosystem is projected to grow at a huge CAGR over the next five years.
