Fintech: Revolutionizing the Indian financial sector
Fintech or financial technology based firms specialize in technology growth, to support the banking and financial industries. Mobile banking on our phones help us to do all the banking transactions in a very simple and time saving way. Moreover, to calculate EMIs and insurance premium quotes, a lot of financial applications are available nowadays. Fintech startups have changed the way we make payments and this has brought a significant change in the Indian economy. A lot of fintech firms in our country are getting funded by investors and they are utilizing the funds for their further expansion. At a CAGR of 22 percent, the Indian fintech market is expected to grow to $84 Bn from $31 Bn by 2025. Here are some of the fintech firms that have deepened their presence in the market with their range of financial solutions.
Lendingkart
Founded in 2014 by Harshavardhan Lunia and Mukul Sachan, Lendingkart is an online financing company that offers working capital loans and company loans to small and medium-sized businesses. Through a fast process with minimal documentation and no collateral necessary, the company provides capital fully online. The company aims to make capital funding accessible at their fingertips. The startup has its presence in Ahmedabad, Bangalore and Mumbai.
Instamojo
Sampad Swain, Akash Gehani and Aditya Sengupta co-founded the company in September 2012. The startup creates free online stores, provides loan, collects fees, ships good and a lot more to boost the business. Startups, micro-entrepreneurs, small and medium-sized businesses are using Instamojo to use features such as free online stores, credit and finance, payments and logistics through mobile and web platforms. Instamojo helps in the business expansion of personalized business tools.
Razorpay
The companies with their suite of products can receive, process and disburse payments through Razorpay’s payment solution. It gives access to payment modes like Mobikwik, FreeCharge, PayZapp, JioMoney, Airtel Money and Ola Money including debit cards, credit card, net banking, common wallets and UPI. Harshil Mathur and Shashank Kumar started the company in 2014. Businesses can simplify money transactions, exchange client invoices, handle the marketplace, receive regular fees, and take advantage of working capital loans from a single platform.
Zest Money
Lizzie Chapman, Priya Sharma, and Ashish Anantharaman founded ZestMoney in 2015. The startup combines digital banking, mobile technologies, and artificial intelligence to make life more accessible for Indian customers. They have also been designated as the 2020 Technology Leader of the World Economic Forum for their unique technologies and attempts to make affordable digital finance available.
PineLabs
Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay founded the company in 1998. The app allows to accept all types of digital payment and transforms NFC mobile into a card machine. The network has grown to provide retailers with risk assessment, leasing & insurance, cashback, payment options, multi-channel analytics, brand offerings, and automated billings. Pine Labs’ technologies are used by more than 100,000 merchants in India and many other Asian countries. In more than 3,700 cities in India, the company’s cloud-based technology powers over 350,000 PoS terminals.
Shiksha Finance
The leading Indian education finance firm offers loans to educational institutions to buy properties, develop buildings and working capital. The firm is reducing school drop-out rates by funding parents for school fees. The period to return debt is 6-10 months and the debt ranges from ₹10,000 to ₹30,050. Parents can utilise the loans to pay for books, shoes, school tuition, uniforms, luggage etc.
Policy bazaar
Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar founded Policybazaar in June 2008 in Gurugram. One of the world’s top fintech players is also India’s largest insurance aggregator. The online platform that later grew to become an insurance policy marketplace originated as a website for price comparison and a knowledge source to learn about insurance. The fees paid for the promotion and advertisements of insurance providers on its website is used for generating revenue for the organisation.
Paytm
Possessed by One97 Communications, Paytm was established by Vijay Shekhar Sharma and is authorized by RBI. BookMyShow, MakeMyTrip, Uber, and Foodpanda are some of the partners of Paytm. Its investors include Ant Financial, Softbank, SAIF Partners, Discovery Capital, T Rowe Price, AGH Holdings, and Berkshire Hathaway.
MoneyTap
India’s first app based credit line was established in 2015 by Bala Parthasarathy, Kunal Verma, and Anuj Kacker. MoneyTap offers fast mobile credit, flexible EMIs, small medium cash loans, and competitive interest rates. Using the app, any person who has PAN and a smartphone can check his or her qualifying limit in less than 15 minutes. The whole procedure is completely paperless and interest rates apply only to the amount which a person borrows.
ePayLater
Founded by Aurko Bhattacharya, Akshat Saxena, and Uday Somayajula, ePayLater is a digital payment solution that allows the “Buy Now, Pay Later” option for regular online purchases with a 14-day interest-free credit limit. EPayLater has collaborated with PVR, Yatra, Tata Croma, IRCTC, MakeMyTrip, EaseMyTrip, and Travelyaatri. The expanded credit line is collateral-free and the service does not have any hidden charges.
Several private banks are partnering with fintechs to explore synergies and better means of service delivery and are contributing to the growth of the Indian financial sector.
Lendingkart
Founded in 2014 by Harshavardhan Lunia and Mukul Sachan, Lendingkart is an online financing company that offers working capital loans and company loans to small and medium-sized businesses. Through a fast process with minimal documentation and no collateral necessary, the company provides capital fully online. The company aims to make capital funding accessible at their fingertips. The startup has its presence in Ahmedabad, Bangalore and Mumbai.
Fintech startups have changed the way we make payments, and this has brought a significant change in the Indian economy
Instamojo
Sampad Swain, Akash Gehani and Aditya Sengupta co-founded the company in September 2012. The startup creates free online stores, provides loan, collects fees, ships good and a lot more to boost the business. Startups, micro-entrepreneurs, small and medium-sized businesses are using Instamojo to use features such as free online stores, credit and finance, payments and logistics through mobile and web platforms. Instamojo helps in the business expansion of personalized business tools.
Razorpay
The companies with their suite of products can receive, process and disburse payments through Razorpay’s payment solution. It gives access to payment modes like Mobikwik, FreeCharge, PayZapp, JioMoney, Airtel Money and Ola Money including debit cards, credit card, net banking, common wallets and UPI. Harshil Mathur and Shashank Kumar started the company in 2014. Businesses can simplify money transactions, exchange client invoices, handle the marketplace, receive regular fees, and take advantage of working capital loans from a single platform.
Zest Money
Lizzie Chapman, Priya Sharma, and Ashish Anantharaman founded ZestMoney in 2015. The startup combines digital banking, mobile technologies, and artificial intelligence to make life more accessible for Indian customers. They have also been designated as the 2020 Technology Leader of the World Economic Forum for their unique technologies and attempts to make affordable digital finance available.
PineLabs
Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay founded the company in 1998. The app allows to accept all types of digital payment and transforms NFC mobile into a card machine. The network has grown to provide retailers with risk assessment, leasing & insurance, cashback, payment options, multi-channel analytics, brand offerings, and automated billings. Pine Labs’ technologies are used by more than 100,000 merchants in India and many other Asian countries. In more than 3,700 cities in India, the company’s cloud-based technology powers over 350,000 PoS terminals.
Shiksha Finance
The leading Indian education finance firm offers loans to educational institutions to buy properties, develop buildings and working capital. The firm is reducing school drop-out rates by funding parents for school fees. The period to return debt is 6-10 months and the debt ranges from ₹10,000 to ₹30,050. Parents can utilise the loans to pay for books, shoes, school tuition, uniforms, luggage etc.
Policy bazaar
Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar founded Policybazaar in June 2008 in Gurugram. One of the world’s top fintech players is also India’s largest insurance aggregator. The online platform that later grew to become an insurance policy marketplace originated as a website for price comparison and a knowledge source to learn about insurance. The fees paid for the promotion and advertisements of insurance providers on its website is used for generating revenue for the organisation.
Paytm
Possessed by One97 Communications, Paytm was established by Vijay Shekhar Sharma and is authorized by RBI. BookMyShow, MakeMyTrip, Uber, and Foodpanda are some of the partners of Paytm. Its investors include Ant Financial, Softbank, SAIF Partners, Discovery Capital, T Rowe Price, AGH Holdings, and Berkshire Hathaway.
MoneyTap
India’s first app based credit line was established in 2015 by Bala Parthasarathy, Kunal Verma, and Anuj Kacker. MoneyTap offers fast mobile credit, flexible EMIs, small medium cash loans, and competitive interest rates. Using the app, any person who has PAN and a smartphone can check his or her qualifying limit in less than 15 minutes. The whole procedure is completely paperless and interest rates apply only to the amount which a person borrows.
ePayLater
Founded by Aurko Bhattacharya, Akshat Saxena, and Uday Somayajula, ePayLater is a digital payment solution that allows the “Buy Now, Pay Later” option for regular online purchases with a 14-day interest-free credit limit. EPayLater has collaborated with PVR, Yatra, Tata Croma, IRCTC, MakeMyTrip, EaseMyTrip, and Travelyaatri. The expanded credit line is collateral-free and the service does not have any hidden charges.
Several private banks are partnering with fintechs to explore synergies and better means of service delivery and are contributing to the growth of the Indian financial sector.
