Financial technology 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 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]
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.[6]
References
- ^ "Fintech sector proving to be talent magnet". The Economic Times. 26 April 2016. Retrieved 22 May 2016.
- ^ "FinTech Gaining Momentum in India with Paytm's Payment Banks". 2 May 2016. Retrieved 22 May 2016.
- ^ a b "Fintech revolution in India: Tech-finance collaboration has fired up entrepreneurs". The Financial Express. 23 May 2016. Retrieved 23 May 2016.
- ^ "India emerging as fastest-growing market for fintech software products". ZDNet. 3 May 2016. Retrieved 22 May 2016.
- ^ "India emerging a hub for fintech start-ups". Business Standard. 18 May 2016. Retrieved 23 May 2016.
- ^ "Online financial marketplace Rubique looks to partner state-run banks". The Economic Times. 16 Feb 2016. Retrieved 25 May 2016.