Fintech, short for financial technology, has become a crucial part of the global economy. In the olden days, all financial tasks were completed through paperwork only as paper-based medium was considered to be the safest. But with the development of technology, internet has emerged as the preferred platform for financial transactions. Tech-focused startups and similar new market entrants are disrupting the way in which the financial services industry conducts its operations.
India has world’s second biggest fintech hub with 2,565 startups operating currently, there were only 737 in 2014. India’s largest share from fintech startups is through ‘payments’ and is followed by lending, wealth tech, personal finance, insurtech, regtech and others.
You must read through this list of the top fintech companies in India if the transformation of the finance industry in India interests you.
Financial Software Systems (FSS)
Paytm was founded in 2010 and is India’s largest payment company that offers consumers multi-source and multi destination payment solutions. Paytm allows consumers to make payments from any bank account to any other bank account free of cost, i.e., zero percent fee charges. Over 8 million merchants have availed its comprehensive payment solutions.
Paytm was founded by Vijay Shekhar Sharma and is owned by One97 Communications. It is licensed by RBI. The Paytm app allows users to shop for both physical and digital goods, and also pay for DTH plans, bill payments, and mobile recharges.
The company partnered with Alibaba’s cloud computing arm – ‘AliCloud’ to expand its payment network at a global scale. Paytm has investors like Berkshire Hathaway, SoftBank Group, and MediaTek. It even raised an undisclosed amount from Ratan Tata in March 2015.
The following steps are to be executed to use Paytm:
1. Create a Paytm account using your mobile number and email ID.
2. You have 3 options – netbanking, debit card, or credit card – to add money to your 'Paytm Wallet'.
3. You can transfer money to someone else by selecting the 'pay or send' option.
4. You can make payments to other individuals or bank accounts on Paytm by scanning a QR code.
5. You can also send money to other Paytm users via their phone number.
Also Read : 10 Best Payment Gateways in India
PolicyBazaar is an online insurance aggregator for comparative analysis of products that are offered by various insurers using parameters like price, quality, and key benefits. It helps users compare insurance policies and assists them in selecting the best or the most relevant policy that can be purchased online or offline.
PolicyBazaar was founded by Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar in June 2008 in Gurugram. PolicyBazaar has raised over $238 million as of 2018. The online platform began as a price-comparison website and an information portal for learning about insurance and related programs; it then expanded to become a marketplace for insurance policies.
PolicyBazaar has tied up with insurance brokers which helps it procure information such as price, benefit, insurance cover, etc. directly from the insurers for the customer to compare. PolicyBazaar does not charge anything from the customer for its service. The revenue for the company is generated from the fees charged for the marketing and advertisement stints done byinsurance companies on its platform.
Founded in Bangalore, Razorpay focuses on the payment needs of startups and enterprises. With Razorpay, merchants can easily accept, process, and disburse money to and from their dealers. It was founded in 2014 by Harshil Mathur and Shashank Kumar. Thousands of clients use its service. Razorpay allows an online business to accept, process, and distribute digital payment through various modes like debit card, credit card, net banking, UPI, and prepaid digital wallets.
MobiKwik is an Indian fintech company that was founded in 2009 by Bipin Preet Singh and Upasana Taku. It is headquartered in Gurugram. MobiKwik is a digital wallet service provider that offers services mobile and online payments, phone and DTH recharge, mobile transfers, online shopping and a lot more. It allows users to store up to INR 50,000 in a MobiKwik wallet that can be used to recharge mobile, pay bills, and shop across various channels. MobiKwik users can use the partial payment feature for ticket reservation and cash pick up for bus tickets booking.
MobiKwik's investors include Sequoia Capital, NET1, GMO Venture Partners, and eight others. Post demonetization, MobiKwik has made it free to transfer money from your wallet to the bank account. Before demonetization, MobiKwik used to charge 4 percent for a non-KYC compliant user and 1 percent fee for a KYC (know your customer) compliant user. MobiKwik has 25 million users across India and many more are being added. Non-KYC compliant users can transfer from INR 1000 to INR 20,000 to their bank account. But once your KYC is done, you can store upto INR 1,00,000 in your MobiKwik wallet.
Do you want to buy something offline on EMI but don’t own a credit card? Zest Money offers an EMI option that you can use to purchase things online or offline from its partner merchants. It is another Bangalore-based startup founded by Lizzie Chapman, Ashish Anantharaman, and Priya Sharma.
Lendingkart is an online financing company founded by Harshvardhan Lunia and Mukul Sachan in 2014. Lendingkart provides loans for working capital needs for SMEs (small and medium sized enterprises); these loans are quick and collateral-free with minimal paperwork.
The company works across 462 cities and has more than 6500 loans to date. Lendingkart has disbused loans over INR 1600 crores by the end of 2018. Aditya Birla Capital, Saama Capital, Mayfield Fund, Bertelsmann India Investments (BII), and Darrin Capital Management are some of its prominent funding partners. In March 2016, Lendingkart entered into a strategic partnership with Mahindra’s SmartShift – a digitally enabled aggregator for cargo owners and transporters.
Lendingkart has access to huge amount of data from data partners dispersed across the country. These data partners provide Lendingkart with diverse information about the vendor: educational qualification, family background, reputation, competitiveness in the market, etc.
How does Lendingkart work?
1. Lendingkart does marketing through referrals, print releases, and news releases.
2. SMEs or vendors visit Lendingkart's website to apply for the loan.
3. They need to provide complete information and upload relevant documents.
4. Once the documents are verified, the analytics team at Lendingkart generates two codes through machine learning systems.
5. Based on those codes, a decision to provide the loan or not is generated and the amount is decided if the loan is approved.
The best part about the whole process is that it just takes 4 hours. A bank generally needs weeks and months for the same process.
Pine Labs is a Gurugram-based fintech platform that provides PoS (Point of Sale) software solutions for offline retailers and brands. Pine Labs initially offered a smart card-based payment and loyalty solution for the petroleum sector. It then introduced a PoS machine for offline merchants. Its 'Plutus PoS' solution is a cloud-based software that can be integrated with a generic POS terminal to allow retailers to accept debit and credit cards, e-wallets, QR codes, and UPI-based payments.
Pine Labs' offerings include marketing tools, reporting and analytics, payment gateway API solutions, mobile payment solution (via myPlutus), loyalty and gift card programs, value-added solutions like EMIs, discounts, pay by points, loyalty solutions, e-wallets and others. The mobile app of Pine Labs is available on Android and iOS and can be used for targeted promotions, dynamic currency conversion and more. In 2017, Pine Labs launched its complete suite of services in Southeast Asian markets; it is present in Malaysia.
MoneyTap is India’s first app-based credit line. It provides you credit and you can repay your credit amount in flexible EMIs of 2 to 36 months. MoneyTap aims to make credit accessible to the Indians who use internet banking. It uses customers' details to evaluate the user's eligibility and decide the credit limit. MoneyTap was launched in 2015 by Bala Parthasarathy, Kunal Verma, and Anuj Kacker .
Also read: Startup Story of Money Tap
Financial Software Systems (FSS)
Financial Software Systems Pvt. Ltd. was founded in 1991 and is a Chennai-based fintech venture that provides electronic payment and financial transaction processing solutions and services globally. Financial Software Systems records all of the financial activities within a business organization.
Its products include card management, merchant management, mobile payments, financial inclusion, messaging middleware, and value added solutions. FSS also offers software services that include systems integration, offshore development, project management and implementation, and 24/7 global helpdesk support services. Financial software is divided into two categories:
1. Financial management (money management): It typically provides the tools to manage banking, income flow, investing, and planning.
2. Tax software: The software provides importing tools, tax form preparation, and the e-filing of your taxes.
Many individuals have the potential to become great students but the exorbitant tuition fees of educational institutions hinder them from pursuing education. Shiksha Finance provides short-term loans to students for their fees. The loan ranges from Rs. 10,000-Rs. 30,050 and must be paid between within 6-10 months. For a private school or college, the loan can range from Rs. 1 lakh-Rs. 73.5 lakh and can be paid within 6 months to 5 years. It was founded by Jacob Abraham in 2014.
Rubique was first launched as 'Best Deal Finance' in 2014. It deals with financial products like loans, health care insurance, etc. You can instantly apply online for any of Rubique's products without any hassle. Rubique was founded by Manav Jeet Singh in 2014.
Capital Float is a Bangalore-based digital finance company founded by Sashank Rishyasringa and Gaurav Hinduja that provides working capital loans and term loans to small businesses via a technology-led loan origination and credit underwriting platform. Capital Float offers loans ranging from Rs. 1 lakh–Rs. 1 crore with terms between 1 – 12 months. The offered loans are based on cash flows, expected receivables, financials, CIBIL score, and bank statements. Individuals can apply online for the loan and once the loan is approved, it is disbursed to their bank account.
If you have orders from well-reputed corporate customers, you can borrow up to 80% of the value of a outstanding invoice, and repay only after you receive payment from your customer. The SME Lending platform distributed about Rs. 1,000 crores as of January 2017. The company has partnered with startups like Shopclues, Paytm, and Uber. The company has raised more than $45 million in NCDs (non-convertible debentures) and its funding partners include George Soros’s Aspada Investment Co., SAIF Partners, and Sequoia Capital among others.
Founded by Chandu Sohoni and Poorna Nayak, Amigobulls provides solution to wealth management-related problems. You can get the daily stock analysis in the form of short, personalized videos. The personalized videos are created automatically using Amigobulls' technology; thousands of videos can be created in a few minutes! This fintech company offers investment advice and news to stock market investors through a patent-pending video generation technology.
KredX is India’s first invoice discounting marketplace platform. It helps businesses gain quick access to working capital in around 24 to 72 hours by selling their unpaid receivables while providing investors with an opportunity to earn low-risk high returns through a unique short-term investment. The company provides a technological platform that connects investors, both institutional and individual, with high-growth businesses looking for working capital through invoice discounting.
KredX's objective is to facilitate short-term working capital to the SMEs raised against blue-chip companies to a network of financiers. KredX's recent acquisition of Hummingbill – a New York-based startup – to strengthen technological capability has assisted the former to progress its growth curve in the lending space.
How does KredX work?
1. SMEs have to submit certain documents. KredX checks on the credit health of the SME through the latter's balance sheets, etc.
2. Physical verification is performed where the KredX team checks on the office and credentials provided by the company.
3. KredX calculates the risk involved using the invoices uploaded by the SME. It then relays this information to the financiers of the ecosystem.
Founded by Ranjit Punja, Gowri Mukherjee and Rajasundaram Sudarshan in 2011, Credit Mantri is a credit facilitator which uses data and technology to help people make better financial decisions. It provides an Equifax credit score that is one of the four credit bureaus authorized in India by the RBI. Anyone who needs credit can create a credit profile on CreditMantri's website to apply for loans and credit card offers based on his or her credit profile. The Equifax score is used by CreditMantri to analyse the individual's credit profile.
Headquartered in Mumbai, Mswipe provides software solutions and payment devices to merchants. Mswipe works with all kinds of bank accounts; hence, merchants don’t have to open a new account for their devices. The company has many popular clients and serves more than 25,000 merchants across India.
BankBazaar is a Chennai-based online financial platform founded in 2008 by Adhil Shetty, Arjun Shetty, and Rati Shetty for product distribution and comparison analysis. It enables users to buy personal loan, home loan, auto loan, and education loan.
BankBazaar also offers debit and credit cards, life insurance, health insurance, auto insurance, travel insurance products, mutual funds, fixed deposits, and savings accounts. With multiple offers from multiple banks, you can compare offers and check your eligibility in minutes. Users only need to provide basic details to apply for a product online and can track its status. BankBazaar’s revenue comes from application-based commission from banks. Customers don't need to pay any charge.
Active.Ai provides chatbot solutions to all types of banks and other financial institutions. Although it is a Singapore-based startup, it has a lab in Banglore and was founded by 3 Indians in 2016. The main focus of Active.Ai is on the banking sector. The founders of Active.Ai are Ravishankar, Shankar Narayan, and Parikshit Paspulati.
Finly lets companies and startups analyse their expenses. Besides expense management, Finly also eases the process of fund disbursement, vendor payment, and helps with the automation of collection. It builds financial software products to save the companies’ money and time.
Ezetap, co-founded by Abhijit (Bobby) Bose and Bhaktha Keshvachar, provides businesses and financial institutions with smart technological transaction solutions. The Company develops and commercializes a mobile point of sale (PoS) solution that allows mobile devices to be converted into PoS terminals by connecting a card-reader into the headphone jack of the device.
Also read: 10 Best Payment Gateways in India
Startups work hard on their products, marketing, and other business activities but forget about one crucial aspect: finance. Managing one's finances is of utmost importance. Business is all about money, you can’t run a business if you don’t think about money. This list of the top Indian fintech startups should help you understand the advancements in the world of Finance.