State Of Indian Fintech, InFocus: BNPL, Q1 2022 Report

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InFocus

BNPL

Table Of Contents 3

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12

INDIA’S FINTECH ECOSYSTEM: FUNDING TRENDS Funding Growth Over The Years Average Ticket Size

EXECUTIVE SUMMARY

Sectors With Maximum Funding Stagewise Analysis

4

INDIA’S DIGITAL ECONOMY OUTLOOK

5

INDIA’S STARTUP ECONOMY: A SNAPSHOT

6

FINTECH IN INDIA: A SNAPSHOT

23

FINTECH STARTUPS ON THE IPO LADDER

7

INDIA’S FINTECH ECOSYSTEM 2021: KEY HIGHLIGHTS

24

MOST ACTIVE FINTECH INVESTORS IN THE SPOTLIGHT: BNPL

Top Hubs For Fintech Funding Mergers & Acquisitions

Top 10 Funding

BNPL: An Overview

Top 10 Acquisitions

8

Key Players Competitive Landscape

INDIA’S FINTECH LANDSCAPE

Market Opportunity

9

FINTECH MARKET OPPORTUNITY IN INDIA Market Size (2021-2025) Number Of Transacting Users (2021-2025) Segment-Wise Market Size (2021-2025)

Growth Drivers & Market Challenges

34

EARLY STAGE FINTECH STARTUPS MAKING WAVES

42

INDIA’S FINTECH UNICORNS & SOONICORNS

50

EMERGING TRENDS

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Executive Summary 4,827

Number Of Active Fintech Startups In India

$1.3 Tn

Estimated Fintech Market Opportunity By 2025

19

Number Of Fintech Unicorns In India

$20 Bn+

Total Funding Raised Between 2014 And 2021

533

Funded Fintech Startups In India

$43 Bn

BNPL Market Opportunity In India By 2025

22

Number Of Fintech Soonicorns In India

61%

Regulatory Uncertainty

Insurance Tech

Internet Penetration In India

Key Market Challenge

Fastest Growing Fintech Subsector In Terms Of Market Opportunity

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The Rise Of India’s Digital Economy The Growing Number Of Internet Subscribers In India 1000

Internet Subscribers (In Mn)

825 718

750 604 500 332 250

0

267

220

392

446

92 2014

391

276 213

2015

115 2016

268

2017

2018

2019

61%

931 Mn

Total Number Of Internet Subscribers In India As Of Sept 2021

Internet Penetration In India

Smartphone Users In India

$0.68

4.7 Hours

305 Mn

Per GB Internet Cost In India

Average Hours Spent On Mobile Per Day Per User

Users Doing Online Transactions In India

73 Bn

$1.7 Tn

337 Mn+

Total Volume Of UPI Transactions As of Dec.2021

Total Value Of UPI Transactions As Of Dec.2021

Total Number Of Rural Internet Subscribers As Of Sept 2021

323

132

Calendar Year Urban Rural Source: TRAI, Statista, App Annie

450

314

175 112

503

834 Mn+

2020

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Fintech Startups That Bagged Biggest Funding Rounds In 2021 Subsector

Funding Stage

Funding Amount ($ Mn)

Notable Participating Investors

Payments

Late Stage

985

Fidelity, Invesco, Baron Capital

Payments

Late Stage

560

Tiger Global Management, Northern Arc, MAS Financial Services

Payments

Late Stage

547

Alpha Wave Global, Tiger Global Management, DST Global

Payments

Late Stage

535

Alkeon Capital, Lone Pine Capital, Salesforce Ventures

Investment Tech

Late Stage

334

ICONIQ Growth, Sequoia Capital, Tiger Global Management

Crypto Exchange

Late Stage

300

Andreessen Horowitz, Coinbase Ventures

Payments

Late Stage

250

SoftBank, Sodexo

Lendingtech

Growth Stage

283

Insight Partners, Tiger Global Management, Moore Strategic Ventures

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Subsector

Funding Stage

Funding Amount ($ Mn)

Notable Participating Investors

Insurtech

Late Stage

234

TVS Capital, Faering Capital, A91 Partners

Insurtech

Late Stage

225

General Atlantic, Multiples Alternate Asset Management, Munich Re

Lendingtech

Growth Stage

215

Barclays, Accel, Sequoia Capital

Fintech SaaS

Late Stage

221

Riverwood Capital, Temasek, Emtek Group

Fintech SaaS

Growth Stage

159

Spectrum Equity

Source: Inc42 Pus Note: Only startups funded between Jan- Dec 2021 are taken into consideration

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Notable Fintech Acquisitions In 2021 Subsector

Company Stage

Notable Investors

Investment Tech

Seed Stage

Y Combinator, Soma Capital

Neo-Bank

Seed Stage

Unicorn India Ventures, PointOne Capital

Fintech SaaS

Growth Stage

Sequoia Capital, Prime Venture Partners

Fintech SaaS

Bootstrapped

N/A

Paymnets

Late Stage

ICICI Ventures, iLabs

Co-operative Bank

N/A

N/A

Fintech SaaS

Growth Stage

Vertex Ventures, Prime Venture Partners

Investment Tech

Subsidary

GAIN Credit

Investment Tech

Seed Stage

NuVentures, Aravind MJ

Fintech SaaS

Seed Stage

Y Combinator, Daniel Schryer

Acquired By

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India’s Fintech Startup Landscape: Who’s Who In Subsectors Payments

Lendingtech

Investment Tech

Insurtech

Neobanking

Fintech SaaS

Cryptocurrency

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India To Reach A Trillion-Dollar Fintech Market In 2025 The country's fintech market is estimated to grow at a CAGR of 31% during 2021-2025 1500

Market Size ($ Bn)

$1,300

$990

1000

$758 $584 500

$435

0

2022 Neobanking

Source: Inc42 Plus. Multiple Secondary Sources

Fintech SaaS

2023 Insurtech

Investment Tech

2024 Lendingtech

2025 Payments

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Insurance Tech Is The Fastest Growing Fintech Segment In India The rapid adoption of non-life insurance covering health, education, vehicle and other areas will spearhead the growth of insurtech for the next three years

Insurtech Investment Tech Fintech SaaS Neobanking Lendingtech Payments 0% Source: Inc42 Plus. Multiple Secondary Sources

20%

40% Market Size CAGR (2021- 2025)

60%

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Fintech Market Opportunity In India To Increase 2.2x In The Next Three Years Lending Tech to remain the dominant subsector in the Indian fintech market

48 (8.2%)

97 (7.5%)

87 (14.9%)

208 (16.0%)

$584 Bn 2022

270 (46.2%)

165 (28.3%)

Lendingtech

Payments Investment Tech

Source: Inc42 Plus. Multiple Secondary Sources

$1.3 Tn 2025

616 (47.4%)

339 (26.1%)

Insurtech Fintech SaaS

Neobanking

Lendingtech

Insurtech Investment Tech

Payments Fintech SaaS

Neobanking

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$8 Bn Raised Across 280 Fintech Funding Deals In 2021 Compared to 2020, the funding amount and deal count surged surged 3.7x and 2x respectively

2014

2015

Source: Inc42 Plus Note: Funding data for 2021 up to 29 December 2021

2016

2017

2018

2019

2020

2021

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Average Ticket Size Of Fintech Investments Hit Record High In 2021

Average Ticket Size Of Investments ($ Mn)

40

$33Mn

$31Mn 30

$25Mn

$23.6Mn 20

$19.6Mn 10

$13Mn $9.7Mn

$5.7Mn 0 2014 Source: Inc42 Plus Note: Funding data for 2021 up to 29 December 2021

2016

2018

2020

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Digital Payment Startups Received Maximum Funding In 2021 Pine Labs, BharatPe, CRED and Razorpay were among the top-funded payment startups

Fintech SaaS 3.5% Neobanking 5.3%

Insurtech 10.7%

Investment Tech 19.5%

Source: Inc42 Plus Note: Funding data for 2021 up to 29 December 2021

3.7

0.267

Payments 48.1%

0.406 $7.9 Bn Fintech Funding

0.822

1

Lendingtech

1.5

19.5%

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Most Favoured Fintech Segment In 2021 New-age consumer lending products like BNPL and payday loans fuelled investor interest in Lendingtech startups

Lendingtech

86

Others 7.5%

30.7%

23

Fintech SaaS 8.2% Neobanking 8.6%

Insurtech 12.1%

24

Investment Tech

280 Funding Deals

19.3%

54

3.7

34

38

Payments 13.6%

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Growth Stage Funding In Fintech Surged 5x In 2021 Between 2020 and 2021, growth stage funding saw the maximum uptick, followed by bridge (3.8x), seed stage (3.7x) and late stage funding (3.1x)

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Fintech Funding Deals Across All Stages Doubled In 2021 The number of funding deals across seed stage startups saw the biggest jump at 2.5x between 2020 and 2021, followed by a 2x rise in late stage deals

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Top Startup Hubs For Fintech Funding In 2021 Bengaluru was the top destination for fintech deals and funding; compared to the previous year, the city’s fintech startups recorded a 163% jump in capital inflow in 2021

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Indian Fintech Startups Recorded The Highest Number Of M&As In 2021 30 As digital payment companies and neobanks required full-stack fintech solutions, the need for technological capabilities and convergence drove the M&A Deal Count activity in 2021

M&A Count

20

10

0

2015

2016

2017

2018 Year

Note: Only M&A deals recorded in our database are taken into account.

2019

2020

2021

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Indian Fintech Startups: Listed & Potential IPO In 2022 Headquarters

Public Listing Status

Current Valuation

Mumbai

Listed

$464 Mn

Delhi NCR

2022

$1 Bn

Bengaluru

2022

$650 Mn

Delhi NCR

Listed

$8.7 Bn

Delhi NCR

2022

$5 to $7 Bn

Delhi NCR

Listed

$5.6 Bn

Source: Inc42 Plus, NSE Note: Market capitalisation for Paytm, Policy Bazaar and Fino Payments Bank are as on 19 Jan. 2022

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Paytm Is The Worst Performing Publicly Listed Fintech Startup In India Shares of One97 Communications, Paytm's parent company, dipped 23%, from INR 1,304 on December 20, 2021, to INR 1,002 on January 19, 2022 20%

% Change Daily Closing Price

10%

0%

-10%

-20%

-30% Dec 27

Jan 27 Paytm

Fino Payments Bank

Jan 10 PolicyBazaar

Jan 17

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Paytm’s Market Capitalisation Eroded At A Weekly Average Of -4.5% From its IPO month (Nov. 27, 2021) to Jan. 19, 2022, Paytm lost 44% (or $6.7 Bn) of its market cap 20

Market Capitalisation ($ Bn)

15

10

5

0

20 Nov 2021

27 Nov 2021

Source: CompaniesMarketCap, Inc42 Plus

4 Dec 2021

11 Dec 2021

18 Dec 2021

25 Dec 2021

1 Jan 2022

8 Jan 2022

15 Jan 2022

19 Jan 2022

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Share Prices Of All Three Public Indian Startups Has Seen A Downward Trend Since Their IPOs 20%

% Change In Share Price Since IPO

Startup

IPO Price

Current Price (LTP)

% Change In Share Price Since IPO

0% 980

999

2%

577

402

-30%

2150

1042

-52%

-20%

-40%

-60%

Policy Bazaar

Fino

Source: Inc42 Plus, NSE Note: Current Price (LTP) is the closing stock price on 18th Jan. 2022

Paytm

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Most Active Indian Fintech Investors In 2021 No. Of Deals

Notable Bets

No. Of Deals

Notable Bets

6

Indiagold, Jupiter, Open

5

Bimaplan, Defy, Stack Finance

15

Scripbox, Zolve, Uni

4

LoanKuber, Siply

13

ShopSe, M2P Fintech, BharatPe

5

BharatPe, Cred, Slicepay

13

inai, Khatabook, M2P Fintech

5

Fello, GalaxyCard, HomeCapital

5

Slicepay, Smallcase, Zolve

5

Leap Finance, Turtlemint

4

Indifi, Vayana Network

5

BharatX, LoanKuber, Siply

5

Cred, Refyne, Zolve

6

Acko, Bimape, Uni

4

Indifi, Niro

4

Cred, Pine Labs

9

Uni, Fampay, Zeni

8

Eduvanz Financing, Klub, SlicePay

5

GramCover, Indifi, M2P Fintech

7

M2P Fintech, Riskcovry, Indifi

4

Bimape, Grip Invest, inai

10

CoinSwitch, Cred, Fi, Groww

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No. Of Deals

Notable Bets

28

Razorpay, Smallcase, Khatabook, Jupiter

4

Stack Finance, Inai, Volopay

4

Clear, FloBiz, Zeni

17

Slice, Cred, BharatPe, Groww

7

Bimape, Bimaplan, Fleek

4

Akudo, App Jar, Khatabook

21

Vested Finance, HomeCapital, Junio

3

Dezerv, FloBiz

10

Karbon Card, Akudo, Bimaplan

Note: This is not a ranking, the organisation name is arranged in alphabetical order and only deals recorded in our dataset are taken into consideration.

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BNPL In India: Sector Snapshot Funded Startups

20+

Funding Raised To Date

$590 Mn+

Key players Key Investors Market Size

$43.3 Bn

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Key BNPL Players In India Maximum Credit Limit

Pay Later

Maximum Credit Limit

Upto 60K

Upto 60K

What Is BNPL?

Upto 25 lakhs

Upto 10 lakhs

Buy now pay later (BNPL) is an instant

N/A

N/A

micro-credit offered to consumers to make

Pay Later

Upto 70K

Upto 20K

retail purchases online and offline.

Upto 1 lakh

Upto 10 lakh

Upto 30K

Upto 6 lakhs

Upto 25K

Upto 2 lakhs

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BNPL: Competitive Landscape In India Registered NBFC

Pay Later

Pay Later

Physical Card

Maximum Credit Limit

Select Lending Partners

No

No

Upto 60K

Capital Float

No

No

Upto 25 lakhs

Muthoot Finance, Fullerton India, AEFPL

No

No

N/A

N/A

No

No

Upto 70K

N/A

Yes

No

Upto 1 lakh

PayU Finance India

No

No

Upto 30K

Bajaj Finance, Aditya Birla, DMI Finance.

No

No

Upto 25K

N/A

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Registered NBFC

Physical Card

Maximum Credit Limit

Select Lending Partners

No

No

Upto 60K

Clix Capital

No

Yes

Upto 10 lakhs

State Bank of Mauritius (SBM)

No

No

N/A

N/A

No

No

Upto 20K

N/A

No

Yes

Upto 10 lakh

DMI Finance, Quadrillion Finance, Northern Arc Capital

No

Yes

Upto 6 lakhs

RBL Bank, SBM Bank

No

No

Upto 2 lakhs

Tata Capital, Catholic Syrian Bank (CSB), SBM

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BNPL: Indian Startup Landscape

Pay Later

Total Funding

Headquarters

Notable Investors

$4.7 Mn

Mumbai

Pravega Ventures, Z5 Capital

$72 Mn

Bengaluru

Valar Ventures, Franklin Templeton, Green Visor Capital

$88.5 Mn

Bengaluru

Accel, General Catalyst, Lightspeed India

$118 Mn

Bengaluru

Alteria Capital, Quona Capital, PayU

Product of BharatPe

Delhi NCR

Sequoia Capital, Tiger Global, BEENEXT

Product by Flipkart

Bengaluru

Walmart, SoftBank, GIC

Product by Paytm

Delhi NCR

SoftBank

Product by PayU

The Netherlands

PayU

$16 Mn

Mumbai

Pravega Ventures, Blue Ashva Capital, ICICI Bank

Product by MobiKwik

Delhi NCR

Sequoia Capital, InnoVen Capital, Trifecta Capital

$291 Mn

Bengaluru

Insight Partners, Tiger Global, Das Capital

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BNPL Market Opportunity To Exceed $40 Bn By 2025 The share of BNPL-triggered payments in the digital commerce and mobile PoS space is expected to rise from 3-4% in 2021 to 21-22% by 2025 50.0

11x Growth

BNPL Market Size ($ Bn)

40.0

30.0

20.0

10.0

0.0

2021

2022

2023

2024

Source: Inc42 Plus, Other Secondary Sources Note: The total addressable market (TAM) for BNPL is calculated as the % penetration of the combined addressable market for digital commerce and mobile-pos payments

2025

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Key Insights: BNPL Market In India Growth Drivers: Physical Card + Digital As BNPL startups like Slice, Uni Cards and others facilitate digital payments and physical cards, the merchant network in this space will grow beyond the realm of digital commerce and reach the traditional retail point of sale.

Wide Credit Enabler Ecosystem Most BNPL players in India are not registered lenders with the central bank. But that has not stopped them from emerging as account aggregators for existing banks and NBFCs. Some notable lenders backing the BNPL format include Capital Float, DMI Finance, SBM and others.

High Investor Confidence So far, several BNPL startups have been launched in India, and more than $590 Mn has been invested in the space. Notable growth and early stage investors such as Tiger Global, Alteria Capital and ICICI Bank have already invested in at least one Indian BNPL company. The current boom also indicates multibagger exits from this sector.

Growing Consumer Internet Market India is home to more than 834 Mn internet subscribers and 845 Mn+ smartphone users. High-speed internet and good-quality smartphones are also accessible in rural India. Hence, rural internet subscribers have grown to 337 Mn in 2021, a 3.7x rise from 92 Mn in 2014.

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Market Challenges: Growing Competition The addressable BNPL market in India is estimated to reach $43 Bn+ by 2025. As of now, the domestic market is already ruled by a plethora of tech giants such as Paytm (Paytm Postpaid), Ola (Ola Money Postpaid), BharatPe (PostPe), Flipkart (Flipkart Pay Later) and others. With the competition getting more intense, it will result in higher customer acquisition costs (CAC) in the coming years, hampering active players' profitability/operating efficiency.

Uncertain Regulatory Framework The RBI working group is still finalising the regulatory framework for all digital lending operators in India. Also, the laws regarding financial data storage/sharing and recurring payments have seen drastic changes, creating a bubble of regulatory uncertainty in the overall fintech market, including the digital lending space.

DIGITA (Digital India Trust Agency) The RBI working group has proposed setting up a nodal agency called DIGITA to supervise all digital lending apps in India. The agency will also check and validate software updates, patches and publisher certificate forgeries. Besides, DIGITA will issue basic digital guidelines that all digital lending companies must follow.

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30 Early Stage Indian Fintech Startups Making Waves Akudo

Arthan Finance

Akudo provides a prepaid debit card for teens for online and offline payments. This also helps young people manage their expenses and savings.

SUBSECTOR

TOTAL FUNDING ($ MN)

Neobank

$4 Mn

Arthan Finance is a lending tech company providing loans to SMBs in non-metro cities.

FOUNDING YEAR

HQ

SUBSECTOR

2020

Bengaluru

Lendingtech

TOTAL FUNDING ($ MN)

$2.4 Mn

FOUNDING YEAR

HQ

2018

Mumbai

NOTABLE INVESTORS

NOTABLE INVESTORS

Y Combinator, JAFCO Asia, Incubate Fund India, AET Fund

Michael & Susan Dell Foundation, Sunil Gulati, Ajit Ranade

Vested

Bueno Finance

Vested Finance enables retail investors from India to buy US stocks and ETFs. It also claims to offer zero-brokerage, fractional ownership of US stocks.

SUBSECTOR

Investmenttech

TOTAL FUNDING ($ MN)

$4 Mn

Bueno Finance is a neobank that offers digital lending solutions to blue-collar workers in India and improves their credit history.

FOUNDING YEAR

HQ

SUBSECTOR

2018

Berkely, CA

Lendingtech

TOTAL FUNDING ($ MN)

$3 Mn

FOUNDING YEAR

HQ

2019

California

NOTABLE INVESTORS

NOTABLE INVESTORS

Moving Capital, Ovo Fund, TenOneTen Ventures, Inflection Point Ventures

Goat Capital, JAM Fund, Olive Tree Capital, Good Water Capital, Kunal Shah

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Clinikk

Defy.club

Clinikk is an insurance tech startup that offers affordable 360-degree healthcare insurance packages.

SUBSECTOR

Insurancetech

TOTAL FUNDING ($ MN)

$4 Mn

Defy Club is a cryptocurrency-focussed startup offering investment and portfolio management services.

FOUNDING YEAR

HQ

SUBSECTOR

2016

Bengaluru

Investmenttech

TOTAL FUNDING ($ MN)

$6 Mn

FOUNDING YEAR

HQ

2021

Bengaluru

NOTABLE INVESTORS

NOTABLE INVESTORS

MassMutual Ventures, Kunal Shah, Anjali Bansal, Rohit M.A.

Michael & Susan Dell Foundation, Sunil Gulati, Ajit Ranade

DGV

EduFund

DGV is a neobank that offers an array of banking services for dairy enterprises in India.

SUBSECTOR

Neobank

TOTAL FUNDING ($ MN)

$3 Mn

FOUNDING YEAR

HQ

2019

Bengaluru

EduFund enables parents to plan/borrow/invest funds for future education expenses of their children.

SUBSECTOR

Investmenttech/ Lendingtech

TOTAL FUNDING ($ MN)

$1.3 Mn

FOUNDING YEAR

HQ

2020

Ahemdabad

NOTABLE INVESTORS

NOTABLE INVESTORS

Info Edge Ventures, Omnivore

Anchorage Capital Partners, ViewTrade Securities

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Even

Stack

Even is an insurance tech startup whose healthcare plan covers doctor consultation and diagnostics. The plan covers a user’s medical expenses from day 1.

SUBSECTOR

Insurancetech

TOTAL FUNDING ($ MN)

$5 Mn

Stack is an investment tech startup that offers DIY portfolio builders for beginners in the stock market.

FOUNDING YEAR

HQ

SUBSECTOR

2020

Bengaluru

Investmenttech

TOTAL FUNDING ($ MN)

$5 Mn

FOUNDING YEAR

HQ

2019

Bengaluru

NOTABLE INVESTORS

NOTABLE INVESTORS

Khosla Ventures, Founders Fund, Lachy Groom, Nikesh Arora, Kunal Shah

Y Combinator, Harvard Management, Goodwater Capital, Soma Capital

Vital

Gosats

Insurance tech startup Vital offers a healthcare plan that covers doctor consultation, diagnostics and pharmacy bills.

SUBSECTOR

Insurancetech

TOTAL FUNDING ($ MN)

$3 Mn

GoStats is a rewards payment platform that enables users to earn bitcoin when shopping online.

FOUNDING YEAR

HQ

SUBSECTOR

2020

Delhi NCR

Payments

TOTAL FUNDING ($ MN)

$700K

FOUNDING YEAR

HQ

2020

Bengaluru

NOTABLE INVESTORS

NOTABLE INVESTORS

BLinC Invest, Venture Catalysts, Survam Partners

Alphabit Fund, Fulgur Ventures, Stacks Accelerator, SBX Capital

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HappyCredit

Hypto

HappyCredit is a rewards payment platform that enables users to earn cashbacks/coupons on purchases made using credit cards or the UPI.

SUBSECTOR

TOTAL FUNDING ($ MN)

Payments

$670K

Hypto is a fintech SaaS startup that provides integrable APIs to facilitate financial services such as payment aggregation, lending and payment collection.

FOUNDING YEAR

HQ

SUBSECTOR

2019

Bengaluru

Fintech SaaS

TOTAL FUNDING ($ MN)

$3 Mn

NOTABLE INVESTORS

NOTABLE INVESTORS

Goodwater Capital, MyAsiaVC, Kunal Shah

Amrish Rau, Jitendra Gupta

Inai

Fintech SaaS

TOTAL FUNDING ($ MN)

$4 Mn

HQ

2018

Chennai

Ippopay

Inai is an Indian fintech SaaS startup that offers a no-code global payment stack for accepting digital payments.

SUBSECTOR

FOUNDING YEAR

Ippopay is a digital payment solution provider that offers payment aggregation and neobanking API stacks.

FOUNDING YEAR

HQ

SUBSECTOR

2021

London

Fintech SaaS

TOTAL FUNDING ($ MN)

$2.4 Mn

FOUNDING YEAR

HQ

2020

Chennai

NOTABLE INVESTORS

NOTABLE INVESTORS

Paua Ventures, 9Unicorns, Uncommon Capital, Soma Capita

Blume Ventures, Coinbase Ventures, Better Capital

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Junio

FEGO

Junio provides a prepaid debit card for teenagers to help with online and offline payments. It also helps teens manage their expenses and savings.

SUBSECTOR

TOTAL FUNDING ($ MN)

Neobank

$3 Mn

FEGO is a fintech SaaS startup which solves use cases across user/data connectivity, transactional intelligence and behavioural insights.

FOUNDING YEAR

HQ

SUBSECTOR

2020

Delhi NCR

Fintech SaaS

TOTAL FUNDING ($ MN)

$149K

FOUNDING YEAR

HQ

2020

Chennai

NOTABLE INVESTORS

NOTABLE INVESTORS

Kunal Shah, Ashneer Grover,Amit Lakhotia

Eximius Ventures, Speciale Invest, 3one4 Capital, First Cheque

Niro

OneAssure

Niro provides embedded consumer lending solutions. Consumer businesses can launch credit products by embedding Niro’s platform.

SUBSECTOR

Lendigtech

TOTAL FUNDING ($ MN)

$4 Mn

OneAssure is a full-stack digital health insurance platform.

FOUNDING YEAR

HQ

SUBSECTOR

2021

Bengaluru

Insurancetech

TOTAL FUNDING ($ MN)

$675K

FOUNDING YEAR

HQ

2019

Bengaluru

NOTABLE INVESTORS

NOTABLE INVESTORS

Elevar Equity, Kunal Shah, Nitin Gupta, Bala Parthasarathy

Arun Venkatachalam, Amit Midha, Dalvir Suni

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Pazcare

Revfin

Pazcare offers insurance packages for employees.

SUBSECTOR

Insurancetech

TOTAL FUNDING ($ MN)

$4 Mn

Revfin provides commercial EV loans to underserved segments, claiming to rely less on numbers and more on a psychometric and biometric assessment.

FOUNDING YEAR

HQ

SUBSECTOR

2020

Bengaluru

Lendingtech

TOTAL FUNDING ($ MN)

$4 Mn

FOUNDING YEAR

HQ

2018

Delhi NCR

NOTABLE INVESTORS

NOTABLE INVESTORS

BEENEXT, 3One4 Capital, Kunal Shah, Zishaan Hayath, Ashneer Grover

Dheeraj Jain, Let's Venture Angel Fund, Anuraag Jaipuria, Ruchirans Jaipuria

Rulezero

Ruptok

Rule Zero is an all-in-one equity management platform for cap table management and caters to startups and other businesses.

SUBSECTOR

Fintech SaaS

TOTAL FUNDING ($ MN)

$4 Mn

Ruptok provides gold loan at one's doorstep at the lowest interest rate.

FOUNDING YEAR

HQ

SUBSECTOR

2019

Bengaluru

Lendingtech

TOTAL FUNDING ($ MN)

$5 Mn

NOTABLE INVESTORS

NOTABLE INVESTORS

The Treasury,Valiant Capital,YourNest Venture Capital,Blume Founders Fund

Manuvel Malabar Jewellers

FOUNDING YEAR

HQ

2020

Delhi NCR

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Siply

SSA Finserv

Siply is a micro-savings app, helping the underserved save and invest as low as INR 1.

SUBSECTOR

Investmenttech

TOTAL FUNDING ($ MN)

$4 Mn

SSA Finserv is a digital-first non-banking financial company that provides B2B loans.

FOUNDING YEAR

HQ

SUBSECTOR

2020

Bengaluru

Lendingtech

NOTABLE INVESTORS

NOTABLE INVESTORS

LetsVenture, AngelList India, Founder Room Circle, Kunal Shah, Beerud Sheth

Blue Ashva Capital

Threedots

Investmenttech

TOTAL FUNDING ($ MN)

$4 Mn

$3 Mn

FOUNDING YEAR

HQ

2019

Mumbai

TradeX

threedots is an online social investing platform for stock market trading. It also features a forum for market insights and offers financial news updates.

SUBSECTOR

TOTAL FUNDING ($ MN)

TradeX is a prediction market platform, enabling people to trade on opinions across topics and get rewarded based on real-life outcome.

FOUNDING YEAR

HQ

SUBSECTOR

2021

Bengaluru

Investmenttech

TOTAL FUNDING ($ MN)

$946K

FOUNDING YEAR

HQ

2021

Delhi NCR

NOTABLE INVESTORS

NOTABLE INVESTORS

Kalaari Capital, Better Capital, iSeed

Soma Capital, TDV Partners, Rajesh Sawhney

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Pantera Capital, Arrington XRP Capital, CMS Holdings, LedgerPrime

Transak

WealthDesk

Transak is a fiat-to-crypto payment gateway that streamlines buying and selling of cryptocurrency, allowing mainstream users and businesses to access crypto and blockchain.

SUBSECTOR

Fintech SaaS

TOTAL FUNDING ($ MN)

$3 Mn

FOUNDING YEAR

HQ

2019

London

WealthDesk allows users to invest in stock and ETF portfolios called the WealthBaskets, created by SEBI-registered professionals.

SUBSECTOR

Investmenttech

NOTABLE INVESTORS

NOTABLE INVESTORS

Consensys, The Lao, IOSG, Lunex, Koji Capital

Mathew Cyriac

TOTAL FUNDING ($ MN)

$3 Mn

FOUNDING YEAR

HQ

2016

Mumbai

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India’s Fintech Unicorns

Cred

Bengaluru

Payments & Investment Tech

fastest Indian fintech startup to reach $1 Bn+ valuation in just 30 months.

has the highest number of fintech unicorns in India.

subsectors have the highest fintech unicorns in India

$52 Bn+

$10 Bn+

Combined Valuation Of Indian Fintech Startups

Combined Funding Amount Of Indian Fintech Startups

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Founded In

Time Taken To Become Unicorn (Years)

Headquarters

Segments

Valuation (In $ Bn)

2016

5

Mumbai

Insurtech

1.1

2018

3

Delhi NCR

Payments

2.9

2000

18

Mumbai

Payments

2

2011

10

Chennai

Fintech SaaS

1.4

2018

3

Mumbai

Investment Tech

1.1

2017

4

Bengaluru

Investment Tech

1.9

2018

3

Bengaluru

Payments

2.2

2016

5

Bengaluru

Insurtech

3.5

2016

5

Bengaluru

Investment Tech

1

2009

12

Delhi NCR

Payments

1.5

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Founded In

Time Taken To Become Unicorn (Years)

Headquarters

Segments

Valuation (In $ Bn)

2015

6

Delhi NCR

Lendingtech

1.5

2010

5

Delhi NCR

Payments

13.8

2015

3

Bengaluru

Payments

5.5

1998

22

Delhi-NCR

Payments

3.5

2008

10

Delhi NCR

Insurtech

1.5

2014

6

Bengaluru

Payments

3

2016

5

Bengaluru

Lendingtech

1

2010

10

Bengaluru

Investment Tech

2

2015

6

Bengaluru

Payments

1.5

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Together, Payments & Investment Tech Account For 68% Of The Fintech Unicorns In India Fintech SaaS 5.3%

9

1

Payments 47.4%

Lendingtech 10.5%

Insurtech 15.8%

2

19 Fintech Unicorns 3 4

Investment Tech 21.1%

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India’s Fintech Soonicorns Founded In

Sub Sector

Headquarters

Total Funding (in $ Mn)

Notable Investors

2008

Lending

Chennai

115

Sequoia Capital India, Amazon Inc, Eight Roads Ventures India

2013

Lending

Bengaluru

201

Amazon, Creation Investments Capital Management, Elevation Capital

2011

Fintech SaaS

Bengaluru

140

Composite Capital Management, Elevation Capital, Founders Fund

2020

Fintech SaaS

Chennai

91

Sequoia Capital India

2015

Lending

Mumbai

260

Accel, Barclays Investment Bank, East West Bank

2019

Neobanking

Bengaluru

75

B Capital Group, Hillhouse Capital Group, Ribbit Capital

2006

Payments

Delhi NCR

58

Bharat Petroleum Corp, Blackstone, ICICI

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Founded In

Sub Sector

Headquarters

Total Funding (in $ Mn)

Notable Investors

2016

Lending

Mumbai

254

Anshu Jain, Franklin Templeton India, Bhupinder Singh

2018

Investment Tech

Delhi NCR

143

Dragoneer Investment Group, Steadview Capital, Tiger Global

2019

Neobanking

Mumbai

157

Global Founders Capital, Hummingbird Ventures, Matrix Partners India

2018

Fintech SaaS

Bengaluru

187

B Capital Group, Moore Strategic Ventures, Surge, Tribe Capital

2015

Lending

Mumbai

48

Sicreva capital, Endiya Partners, VentureEast

2014

Lending

Ahmedabad

257

India Quotient, FMO, Alteria Capital, Bertelsmann India Investments,

2011

Payments

Mumbai

105

Matrix Partners India, Axis Bank, Falcon Edge Capital

2018

Lending

Bengaluru

582

Gaja Capital, International Finance Corporation, Anand Rao, Shweta Mani

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Founded In

Sub Sector

Headquarters

Total Funding (in $ Mn)

Notable Investors

2019

Payments

Pune

121

QED Investors, Oceanview Capital Partners, Sequoia Capital

2017

Neobanking

Bengaluru

203

3One4 Capital, Amrish Rau, BEENEXT

2006

Fintech SaaS

Mumbai

41

Kleiner Perkins, Lightbox, Mayfield Fund

2018

Investment Tech

Bengaluru

N/A

Paytm, One97

2015

Lending

Bengaluru

173

Accel, Sequoia Capital, GGV Capital

2011

Fintech SaaS

Hyderabad

163

Spectrum Equity

2015

Lending

Bengaluru

103

Alteria Capital, Goldman Sachs, PayU

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Lending Tech In India Is likely To See Maximum Number Of Fintech Unicorns Investment Tech

9

9.1%

2

Lendingtech 40.9%

Neobanking

22 Fintech Soonicorns

13.6%

3 Payments 13.6%

3

5

Fintech SaaS 22.7%

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Emerging Trends: Fintech In India Neobanking Neobanks in India currently work as a layer2 fintech solution sitting on top of existing legacy banks. But with fintech firm BharatPe tying up with Centrum Finance (an NBFC) to acquire PMC Bank and the UK-based fintech firm Revolut entering India, a full-fledged digital bank as an alternative to traditional banking may soon emerge in India

Investment Tech As of 2019, only 3% of the Indian population participated in the national stock market compared to 55% in the US. In FY21, the estimated value of total equity in the Indian stock market was $990 Bn, and the same is likely to increase 2.3x to $2.2 Tn in FY26. A combination of growing awareness and rising demand regarding financial securities and a vast addressable market portray investment tech as a lucrative business opportunity in India.

Insurancetech Among other fintech sub sectors, insurance tech is the fastest in terms of market size. From $87 Bn (2022) to $339 Bn (2025), the addressable market is estimated to surge 4x. The rapid adoption of non-life insurance covering health, education, vehicle and other areas will spearhead the growth of insurtech for the next three years

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Fintech SaaS The Covid-19 pandemic has accelerated the adoption of digital financial products and services among India's SMBs, driving the demand for fintech SaaS solutions such as app-based accounting & bookkeeping, no-code payment aggregation and equity cap table management. The market size for fintech SaaS in India is expected to see a 2.7x surge in the next three years, from $4.6 Bn in 2022 to $12.6 Bn in 2025.

Market Consolidation Many established fintech startups in India are eyeing IPOs this year, including MobiKwik, Navi Technologies and Pine Labs. Understandably, the greater a company's market share, the better the chance of a successful IPO, which helps raise investor confidence. In fact, a substantial market share is one of the critical indicators that analysts use to determine a company's competitive position. Hence, a rush of M&A deals is on the cards. Moreover, the requirement of full-stack solutions to capture potential customers and new markets at the earliest will also send these top players on a shopping spree.

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