FinTech or financial technology has emerged as a relatively new industry in India. FinTech is an industry comprising companies that use technology to offer financial services. These companies operate in insurance, asset management and payment etc.
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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.
The India FinTech Awards (IFTA) is a platform to celebrate and recognise the best innovations from fintech companies.
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.
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. Visakhapatnam (Vizag) is being developed as fintech hub and the local government of Andhra Pradesh, had opened fintech Valley Tower to promote the investments in this area
India FinTech Forum represents the Indian fintech firms as part of the of Global FinTech Hubs Federation (GFHF).
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. Rubique, an online financial marketplace facilitating retail loan, small business loan & credit card, is backed by venture capital firm Kalaari Capital. Lendingkart Group, an online lending marketplace for personal loans, to boost its technology and data analytics capabilities. The company raised $32 million (around Rs 205 crore) in its Series B funding round led by Bertelsmann India Investments.