Page 1

RISE OF INDIAN FINTECHS TIME TO GO GLOBAL HTTPS://WWW.THEDIGITALFIFTH.COM


by The Digital Fifth

India Report

FOREWORD From account opening to insurance underwriting to payments to peer-to-peer lending, FinTechs are innovating across areas and offering differentiated customer experience. India Fintech Ecosystem has been growing well over the last five years and many of these successful startups are now getting ready for international rollouts. To provide holistic view of our dynamic ecosystem, we have shared in this report: • Key Fintech trends for next 3 years: Many of The Digital Fifth’s earlier predictions have come true. This has encouraged us to share trends for next three years. • News that mattered: With so much change happening on a daily basis, it is difficult to track the news that matters. News that mattered is a recap of some of those headlines of the last 12 months that have had significant impact on the ecosystem. This is across segments - Regulatory, Funding, Mergers and Business. • Large Funding across segments: We analysed some large deals (above 8 million USD) and some of the results are surprising. Payments and Insurance sectors have largely dominated large funding segment, which we normally presume to be loaded towards lending. We also have found limited co-relation between funding rounds and size. Seven Series A / Seed funding deals appear in this list of thirty seven deals. • Unique startups: We are always on a look out for unique business models in startups. We have collated a set of seven startups, which we believe will create impact on ecosystem. • Neo-entrants: Financial services are normally not the primary need of the customer, they are always linked to a real transaction like buying a house, shopping, education etc. As Fintech services are available via Open APIs through partners, many large start-ups have started crossing over to Fintech. We have documented key players, who are entering fintech ecosystem from agritech, healthtech, e-commerce etc. • Top 30 Fintech Influencers: We had started sharing India’s Top 30 Fintech Influencers in 2018 and is well followed by the ecosystem. This list has to be read in conjunction with previous two versions. This report is built on publicly available data and The Digital Fifth’s understanding of the market. The Digital Fifth team expresses gratitude to their customers, partners and well wishers, who have helped in improving our understanding of the market and encouraging us to create this report.


4

India Report

ABOUT US India’s first Fintech consulting and advisory firm for Banks, NBFCs, Wealth Management, Mutual Fund and Insurance segments. We are pure play Fintech & Digital Consulting Firm and have been the go-to solution finders for established BFSI organizations and emerging game-changers alike. While the Fintech landscape continues to evolve at a rapid pace, The Digital Fifth empowers businesses by providing them with tested as well as bespoke solutions for their digital evolution journey. A niche consulting firm, we focus on Digital Transformation, Strategic Partnerships between start-ups and banks and Fintech Training. We take pride in delivering consulting services to create value for our customers Knowledge Partners for the India Fintech Forum, The Digital Fifth has broken new boundaries since it’s inception, backed with future-ready know-how and the drive to always stay a few steps ahead. We support, collaborate and deliver for the entire ecosystem - BFSI customers, Fintechs, Startups, Technology Firms, Policy makers, Regulators, Bureaus

Our Journey

2017

2019

• Launch of Training Practice: Fintech Strategy Training, open participation and corporate training. • First Consulting assignment: CDO as a service to a Fintech in SME lending. • Launch of Fintech Partnership Program: Fintech Bazaar. • First Cross Border Partnership assignment

• Launch of Open Banking Masterclass • Added more clients to consulting practice (10+) • Advisor to API sandbox initiatives • Knowledge Partner (The Digital Fifth) and Convenor (Sameer Singh Jaini) to India Fintech Awards (IFTA) • 3 Fintech Bazaars • Scaled up partnership program with 6 new clients

2018 • Launch of First Industry certification program on Fintech • Trained team from one of the largest global consulting firm on Fintech • Trained team from leading Digital Bank (MNC Bank) • Scaled up Consulting Practice which includes building payment strategy for one of the leading bank • Recognition from Mumbai Fintech Hub (A Government of Maharashtra Initiative) • 4 Fintech Bazaar in the year on diverse topics - Lending, wealth, AIML, Lending to Lenders


by The Digital Fifth

India Report

Contents 1

About us

4

6

2

Top Fintech Trends

6

7

Top 30 Fintech Influencers

24

3

News that matterd

12

8

India Fintech Landscape

26

4

Funding Report of Large Deals

14

9

Our team

29

5

Unique Start ups

16

10

Our Services

31

NeoEntrants

20


6

India Report

Top Fintech Trends for Next 3 years

Independent B2C Payment Business Model will remain exclusive to large startups:

B2B Payment segment will go through evolution: B2B segment has done exceedingly well over last few years across POS and Payment Gateway segments

of these startups will start offering other financial product like lending to make their business model viable. This movement is already visible with many leading players launching their lending business based on access to their merchant’s

As a payment product, UPI will

with leaders like Pinelabs and

continue to scale with more

Razorpay building scalable and

innovative use cases coming in

profitable business models.

and will remain default payment

This segment has primarily

transaction data:: • Razorpay (Razorpay Capital) • Pine Labs (Pine Labs Capital) • CCAvenue • MSwipe

gateway for the country.

depended on Merchant Discount

While UPI has enabled innovation

Many of these platforms may also

Rate for their revenues. In the

in payment space, it has resulted

gravitate towards neo banking/

budget, government has proposed

in larger players taking complete

accounting segment.

that the establishments with annual

control of the market. With wallet

turnover more than 50 crore will

business depleting and UPI getting

Lending fintechs:

offer low-cost digital modes of

Lending fintechs across retail and

aggregated with few players, there

payment to customers and no

sme segment have attracted a

may not be many new players

charges or MDR shall be imposed

good chunk of funding over the

entering this space.

on customers or merchants.

last couple of years. Some of these

As for remittance business, it would

This change will impact payment

startups are currently undergoing

continue to scale as the market has

startups focusing on issuance side

tough times due to changes in ekyc

remained largely untapped as of

(where they share issuance fees

processes, liquidity crunch and

now. India will see emergence of

with banks) and acquirer side. Many

NPAs. This segment is now reaching

few large remittance players with focus on high traffic corridors..


by The Digital Fifth

India Report

a maturity stage with established ones expected to grow well and capital deprived ones either closing down or merging with banks / stronger fintechs. Successful startups in this segment will start • Entering offline business (like Zestmoney) • Adding new segments (Slice now focusing on millennials) • Offering their platform as SaaS • Applying for banking license • Becoming Neobanks

Wealthtech growth would continue to be a challenge: Indian Wealthtech / Robo Advisory has grown rather tepidly due to lack of real business models as Indian customers do not tend to pay for value added services around wealth. In addition, direct mutual funds have gained ground amongst digitally savvy customers, resulting in low or zero revenues for mutual fund distributors. To make it more complex, the segment has seen

Entry of

Mega funding of players like

This change has already triggered mergers of players like

Over next few years, many

products and services. These

Trade Finance will emerge as a one of the largest segments:

acquirers may be from fintech

Trade finance has remained an

ecosystem or from financial services

under penetrated area for fintechs

ecosystem.

due to inherent complexity of the

• R eplacing manual data entry with data extraction and processing of trade documents • Reducing the operational risks • Applying trade regulations • KYC • AML • Trade Embargoes

Unique revenue making startups

sector requiring deep knowledge of

Internationally, startups focused

would continue to scale, which are

business and compliance.

not focused purely on mutual fund

There are multiple areas, where

Coriolis, Intix, Tradeteq are helping

distribution.

fintechs can help in simplifying

in reducing risks and accelerating

trade finance including:

trade processes.

wealthtechs will merge with larger entities offering wide range of

on trade finance like Traydstream,


8

India Report

For processing trade transactions, Indian banks will have to partner with global consortiums like Marco Polo, Voltron, Trade Information Network or with Indian consortium of Finacle Trade Connect. There is limited possibility of any fintech player building the consortium ground-up as it would require immense capital as well as international rollout.

Neobanking / Bookkeeping is the new wallet: The current wave of neobanks and accounting platforms is getting as large as the one we had seen in wallets business in 2014 / 15. Most of these startups are funded well

Consumer Neobank

Accounting / Bookkeeping platforms

SME Neobank

Consumer focused open banks would find it challenging to build business as they would compete with larger AllIn-One Apps (PayTM, PhonePe) as well as Digital Banks (like Kotak and DBS). SME focused platforms would do well as • there is large untapped market • they are able to build customer focused solutions like invoicing, taxation, accounting, reconciliation etc. More than 10 well funded startups would be entering the market in next couple of years to tap different segments of the market.

NeoEntrants: Financial services are normally not the primary need of the customer and are always linked to real transaction like buying a house, shopping, education etc. As fintech services are available via Open APIs through partners, many large startups have started crossing over to fintech including:


by The Digital Fifth

India Report

This movement will accelerate as these entities • Have low cost of customer acquisition (as customers are already acquired) • Have deep insights on customers • Can simplify customer journeys Success of PhonePe by Flipkart has already shown what can be achieved by these transitions. Many of these NeoEntrants may buyout fintech startups to fast-track the movement.

Growth through international expansion: Many Indian Fintech startups are entering maturity phase in Indian market and are now looking for international markets. We have seen some movement in this area including:

Middle East

Middle East & Africa

Latin America, the United States and Europe

Japan

UAE

Many large B2C fintechs as well as unique B2B fintechs would enter international markets. Middle East, Africa and South East Asia would be the primary target for these startups due to better access to the ecosystem.

Market getting ready for international startups: In last couple of years, India has seen entry of many international startups, which are in different stages of expansion. • Fintech startups like

• Fintech enablers like Indian B2B market is particularly ripe as banking community is now exposed to value of fintechs within India and has seen international startups in events across the world. We will see entry of nearly 20 to 30 startups and many of them would become successful with localization of products as well as pricing.


10

India Report

Government Tech will go through upgrade:

are building their business models

Government has revolutionized

are going beyond just underwriting

fintech ecosystem through

with focus shifting towards

introduction of government

customer onboarding, cross-sell,

supported frameworks like • Aadhaar Authentication • Aadhaar e-KYC, E-Sign • IMPS, UPI, AEPS, UPI • GST • TReDS • Government e Marketplace • Psbloansin59minutes • MF Utility • Payment platform for MSMEs (in progress) • Sahamati • Public Credit Registry (in progress) • RBI / IRDAI / SEBI regulatory sandbox

servicing, fraud management etc.

around optimal usage of these technologies. Usecases of AI / ML

Launch of SME Fintech banks by private sector banks: With retail digital business getting overcrowded with fintechs and digital banks, many banks would

APIs will become critical for all

start focusing on SME segment

providers with forward looking

and launch their own SME Fintech

banks launching their Open API

banks. These banks will offer

platforms like RBL Bank, Kotak

services like invoicing, payables,

Bank, Yes Bank, DCB Bank, Federal

receivables, tax payments,

Bank. These API platforms are now

reconciliation, lending purely

defining the partnership focus of

focused on MSME / SME segments.

these banks wrt fintechs as well as

These banks will compete with

other business partners.

fintechs offering SME Neo Banking

Blockchain Platforms will finally move to production:

Services in partnership with banks

With RBI / NPCI at the center of

parallel with their current business

innovation in the country, real

model and will help in changing

blockchain use cases are getting

business strategy as well as culture

initiated by them. NPCI is already

of the bank. Embedding of bank

building Resilient, Real Time

in all processes of SMEs will give

and Highly Scalable payment

them better understanding of the

solution utilizing distributed ledger

business and will help in improved

technology / Blockchain.

credit scoring & lending thereby

Other cases of banks working with

expanding the economy.

Startups acquisition by Financial Institutions:

These initiatives will have significant

blockchain solution include: • Finacle Trade Connect for trade finance transactions • J P Morgan’s Interbank Information Network for crossborder payments

impact on Fintech Ecosystem.

Many startups are now building

maturity phase in payments,

Industry getting used to AI / ML, RPA, API, Blockchain:

production grade blockchain

lending and wealth segments,

solutions, which will accelerate the

many successful startups (and not

adoption.

overvalued) would get acquired

As the country focuses on becoming a $5 trillion economy by 2025, we may see newer government initiatives across areas like: • Data aggregation (beyond financial services like from ecommerce providers) • E-Collections • Fraud Management / Anti Money Laundering • Lending enablement framework • Trade Finance • Remittances

Fintechs as well as Financial Institutions have started harnessing the power of new technologies and

and will offer lower rates, faster TAT and better customer experience. SME Fintech Banks will run in

As startup ecosystem goes through

by financial institutions. The purpose of acquisition may vary


by The Digital Fifth

India Report

from kickstarting digital business

Fintech Strategy & Digital Strategy:

to bolstering current business

Firms will create board approved

to changing the culture of the organization.

digital strategy & fintech strategy for acquiring, investing, partnering

Till now, we have seen very few

and competing with Fintechs.

acquisitions of fintechs by financial

These strategies would be driven

institutions like Freecharge by Axis

by the CEO and would be aligned

Bank, Quantiguous Solutions by

with business strategy of the

Deutsche Bank. The key challenge

organization. Investors would shift

for financial institution has been

their focus to digital maturity of

valuation, which is now becoming

the firm instead of just current

more realistic. Primary targets

valuation modes.

for acquisition would be in B2B

Insourcing of decent traction. Technology will Technology Leaders in accelerate: Financial Institutions have started Board: books) and wealthtech players with

add Technology Experts in their boards to enable better focus on technology innovation. In last couple of years, many large banks have added technology leaders in their board including HDFC Bank (Mr. Srikanth Nadhamuni), ICICI Bank (Ms. Neelam Dhawan) and Axis Bank (Mr Girish Paranjpe). Even Small Finance Banks are moving in this direction with Ujjivan SFB (Mr Sachin Bansal) and AU Small Finance Bank (Mr Pushpinder Singh) leading the change. Ujjivan has taken this further by hiring Mr Nitin Chugh as its next managing director and chief executive officer. He was earlier with HDFC Bank as Head of Digital Banking and had led the digital transformation of the bank.

As most financial institutions would be embarking on their digital transformation, there would be dramatic change in their organization structure. Hiring would increase across areas like technology, compliance, data science, partnerships etc. There would be rightsizing in the areas of

payments, Fintech Lenders (with

80% of Financial Institutions would

Hiring / Skilling / Organization Structure:

operations, credit, sales etc, whose work may be partially automated. Skills required for running Fintechs / Tech powered banks may be different from skills available within

moving away from outsourcing

large organizations across Sales,

of technology and have started

Operations, Credit, Technology

insourcing across key areas

etc. To ensure that teams are

like Customer Onboarding,

getting for the future, training of

Omnichannel Platform, API

resources around Fintech / Digital

platform, Analytics etc. Many

Transformation / Open Banking /

financial institutions have also

Innovation / Change Management

started building core platforms like

would be the HR theme over next

loan origination platforms, loan

few years.

management platforms, CRM etc. inhouse to create differentiated value preposition in the market. This movement will continue to accelerate as financial institutions have realized that technology is the key differentiator in the ecosystem. Insourcing helps in building the IP, retaining employees, reducing costs and enabling digital culture. This is akin to the way Fintechs are creating business by harnessing technology. DBS Bank has been a great example of how insourcing of technology can help in building a digital bank.


12

India Report

News that mattered Best of Fintech News

November’19 • RBI launches Fintech Regulatory Sandbox with the first cohort focused on Payments. • RBI issues Technical Specifications for all participants of the Account Aggregator (AA) ecosystem • Digital payments platform Razorpay has acquired cloudbased payroll management startup Opfin • Open partners with Visa to launch credit card for SMEs / Startups • Paytm raises $1B in funding from Softbank at $16B valuation • Perfios raises 50 million USD, one of the largest round of funding for pure B2B Fintech Enabler Segment

October’19 • “ RBI offers on-tap authorisation for the following entities: -Bharat Bill Payment Operating Unit (BBPOU). -Trade Receivables Discounting System (TReDS). • C2FO acquires early payment platform, Priority Vendor • FASTags will become mandatory for all vehicles from December this year. • Credit Saison India receives the NBFC licence with a focus on supporting fintech lenders. • UPI crosses 1 billion transactions in a month

September’19

August’19

• IRDAI opens applications for the regulatory sandbox • RBI releases discussion Paper on Guidelines for Payment Gateways and Payment Aggregators • RBI releases draft guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector • RBI bars third party agents from accessing credit bureau data via Banks and NBFCs. • Usage of DSAs by banks for sourcing loans and physical verification of KYC disallowed. • Sachin Bansal acquires Chaitanya Rural Intermediation Development Services Private Limited (CRIDS) for $104 Mn • NPCI reduces MDR to encourage digital payments. • OkCredit, a bookkeeping platform, raised $67 million in Series B round. • Seven Indian banks join JP Morgan’s blockchain platform Interbank Information Network for cross-border payment. • Mastercard and R3 ties up to Develop New Blockchain-Powered Cross-Border Payments Solution

• RBI gives mobile wallet providers time till February 28, 2020, to fully comply with KYC requirement. • Apple launches its credit card in tie-up with Goldman Sachs • Scripbox, amongst the largest wealthtech in India, acquires Upwardly

July’19 • Government removes angel tax, which was creating discomfort for entrepreneurs and investors. • Government proposes Zero MDR for all businesses with an annual turnover of more than ₹50 crores. • RBI removes NEFT, RTGS payment charges to push digital transactions • NPCI introduces RuPay JCB Global Card • Visa invests in Indian B2B payments firm PayMate • Paytm partners with Clix Finance to provide digital loans to consumers and small businesses.


by The Digital Fifth

June’19 • ACI makes a strategic investment in Mindgate Solutions. • Fintech Investment and Deals Platform (FIND) launched for match-making between investors and startups by Mumbai Fintech Hub.

March’19 • Web portal PSBloansin59minutes.com emerges as the largest online lending platform, according to a report by global financial firm Credit Suisse • SBI partners with Hitachi Payment for establishing a state-of-the-art digital payments platform for India and other countries in the region • Policybazaar enters into UAE market with offerings across insurance and lending. • IBM unveils IBM Blockchain World Wire, a real-time global payments network for regulated financial institutions • IRCTC launches ‘IRCTC iPay’, its payment gateway • FIS acquires Worldpay, a payment processing company.

December’18 • Suspension of eSign based E-Mandate for NACH by NPCI • RBI initiates the process of setting up Public Credit Registry • UK-based fintech startup Revolut receives the European banking licence • Xiaomi launches UPI-powered Mi Pay

India Report

May ’19 • Irdai releases draft regulations for the creation of a regulatory sandbox in insuretech area. • SEBI releases a draft framework for the creation of a regulatory sandbox. • Policybazaar enters into UAE market with offerings across insurance and lending. • Fintech Education Platform (UDAY) launched by Mumbai Fintech Hub • Reserve Bank of India publishes Payment and Settlement Systems in India: Vision 20192012

February’19 • Federal Bank launches open banking platform to partner with fintech and customer ecosystem. • RBI launches the ombudsman scheme for digital payments • Amazon Pay launches UPI services on Android.

April’19 • RBI releases draft enabling Framework for Regulatory Sandbox • RBI approves e-mandate through Debit card and Internet banking. • Chinese Fintech firm WeCash focused on consumer lending exits from India. • PayU acquires digital payments company Wibmo for $70 million

January’19 • Reliance Jio enters POS business • Sequoia launches Surge, a rapid scale-up program for startups in India and Southeast Asia. • Ola applies for NBFC license to enter into the lending business. • Fiserv acquires First Data in a $22 billion stock deal.


14

India Report

Funding Report of Large Deals Sl No

Startup Name

Founded in

Segment

Funding Round

Amount Raised (million USD)

(Deals Above USD 8MN)

Lead Investors

1

Policybazaar

2008

Insurtech

Series F

302

SoftBank Vision Fund, Tencent

2

CRED

2018

Payments

Series B

120

Ribbit Capital, Gemini Investments, and Sequoia CapitalÂ

3

Incred Finance

2016

lending

Series A

86

FMO

4

Billdesk

2000

Payments

Series C

86

Visa, Claymore Investments

5

OkCredit

2017

Accounting / Neobanking

Series B

82.6

6

Razorpay

2014

Payments

Series C

75

Ribbit Capital

7

BharatPe

2017

Payments

Series B

66

Ribbit Capital, Insight Venture Partners, Sequoia

8

Acko

2017

Insurtech

Series C

65.6

9

Zeta

2015

Payments

Series C

60

Sodexo

10

Perfios

2007

Fintech Enabler

Series B

50

Warburg Pincus, Bessemer venture Partners

11

Niyo Solutions

2015

Payments

Series B

35

Horizons Ventures

12

OfBusiness

2015

Lending

Series D

34

Norwest Venture Partners

13

Mswipe

2009

Payments

Series E

31.5

14

Open

2016

Accounting / Neobanking

Series B

30

Tiger Global anageent

15

Rupeek

2015

Lending

Series C

30

Accel Bertelsmann India Investments, Accel, Sequoia India

16

Lendingkart

2014

Lending

Series D

30

Fullerton Financial Holdings Pte Ltd, Bertelsmann India Investments, India Quotient

17

Paymate

2006

Payments

Series D

25

Recruit Strategic Partners, Brand Capital, Mayfair 101, Visa

18

Turtlemint

2015

Insurtech

Series B

25

Sequoia Capital, Blume Ventures, Nexus Ventures

19

Khatabook

2017

Accounting / Neobanking

Series A

25

GGV Capital, RTP Global, Sequoia India , Tencent

20

Upstox

2009

Wealthtech

Series B

25

Tiger Global anageent

21

Drip Capital

2014

Lending

Series B

25

Accel

Lightspeed Venture Partners, Tiger Global, Morningside Venture Capital

RPS Ventures, Binny Bansal, Intact Ventures

Falcon Edge, B Capital, Epiq Capital and DSG Growth Partners


by The Digital Fifth

Sl No

Startup Name

India Report

Founded in

Funding Round

Segment

Amount Raised (million USD)

Lead Investors NH Investment & Securities, IMM Investment, HB Investment, IBK Capital, D3 Jubilee Partners, SB Partners, Shinhan Capital

22

True Balance

2015

Payments

Series C

23

23

Groww

2016

Wealthtech

Series B

21.4

Ribbit Capital

24

Scripbox

2012

Wealthtech

Series C

21.4

Accel Partners, Omidyar Network, NLI Investment Fund

25

Indifi

2015

Lending

Series C

21

CDC Group

26

Zestmoney

2015

Lending

Series B

20

Quona Capital

27

LoanTap

2016

Lending

Series B

20

Avaana Capital, 3one4 Capital

28

RenewBuy

2014

Insurtech

Series B

19

Lok Capital, IIFL Wealth.

29

Vymo

2013

Fintech Enabler

Series B

18

Emergence Capital, Sequoia Capital

30

Vivriti Capital

2017

Lending

Series A

15.8

31

Mymoneymantra

1989

Lending

Series A

15

Vaalon Capital

32

INDWealth

2018

Wealthtech

Seed

15

Tiger Global anageent

33

Chargebee

2011

Payments

Series D

14

Steadview Capital

34

ZipLoan

2015

Lending

Series B

12.5

35

Fisdom

2015

Wealthtech

Series C

11

PayU, Saama, Quona

36

Avail

2017

Lending

Series A

9

Matrix Partners

37

Mintifi

2017

Lending

Series A

8

IFC

535.5 411.6 326.3 Amount

137.6 93.8 68 1570

(Value in USD MN)

Payments

Lending Accounting / Neobanking

Fintech Enablers Total Large Deals

SAIF Partners

10

Insuretech

Wealthtech

Creation Investments

4 13

Number of deals 3 5 2 37


16

India Report

Unique Start ups SETU

Launched in: 2018 Founders: Sahil Kini, Nikhil Kumar Category: Fintech Enablers Brief – Setu is an API infrastructure start-up that provides a stack of APIs, which enables start-ups to pick and choose a set of APIs to build fintech solutions to provide financial services. Innovation – Financial institutions systems are designed to build and produce standard products meeting financial needs. Setu has built an innovation layer on top of it to provide API infrastructure to break these financial products into their fundamental building blocks, and offer them as APIs to developers and companies. These Fintechs/startups can then use and package these APIs into highly customised apps, tailor-made for their customers to provide financial services. Setu recently launched ‘Collect’, a product designed for merchants of all sizes to collect recurring payments directly from customers’ preferred payment applications. Funding Raised $3.5 million as a part of seed round capital led by Lightspeed India Partners and Bharat Inclusion Seed Fund. The Digital Fifth View: As the world moves more towards Open Platform Approach, be it in banking, insurance; companies would require infrastructure which enables them to pick and choose set of APIs as per their business model & customer requirements. We will see more of such open infrastructure providing a bundle of APIs mapped to build financial solutions. Setu has an early mover advantage in providing new-age API infrastructure to build financial products.

OKCredit

Launched in: 2017 Founders: Harsh Pokharna, Gaurav Kumar, Aditya Prasad Category: Neobank / Accounting Brief – OKCredit is a Bengaluru based Fintech that provides a mobile app designed for small merchants to keep track of their receivables and payables. They have 10 million-plus downloads with users across 2800 cities. Innovation – OKCredit has attempted to solve receivable and payables issues for small merchants in a very simplified and innovative way. They provide small merchants with a simple mobile APP to keep track of credit balances, payments and transaction summary on phone instead of maintaining paper-based recording. The solution is also designed to protect data by backing it up online against phone numberbased account and can be recovered by a simple OTP authentication on a new device later on. The solution enables merchants to send transaction updates through SMS or WhatsApp as well send reminders for pending dues to their customers. Funding Raised funding of $67 Mn in the latest round of funding from Lightspeed Venture Partners, Tiger Global and Morningside Venture Capital. The Digital Fifth View: Digitization of MSME and SME especially small shopkeepers, merchants are key for country growth. Simplification of book-keeping through mobile app provides visibility to merchants on its cashflow. This data receivables and payables will have the potential for cross-selling & upsell and will enable OKCredit to bundle financial services such as payments, credit requirements for the merchant.


by The Digital Fifth

India Report

OPEN

Recko

Brief –

Brief –

Open is a neo-bank platform that combines

Recko has built a SaaS-based reconciliation product

everything from banking to invoicing & automated

to track of the complete transaction lifecycle and

book keeping in one place for SMEs and other

streamline reconciliation flow.

businesses.

Innovation –

Innovation –

Recko

Managing banking and accounting separately has

reconciliation that most companies are facing with

always been a major problem for SME/MSMEs.

digital transactions because of sheer volume and

Open has built a solution that helps merchants

complexity. Reckos automate the entire process

to initiate and make payments as well as collect

of reconciliation and trace the data throughout

payments from the same platform as well as

transaction lifecycles. The company connects with

reconcile financial transactions with receivables

payment gateways, banks and merchant’s order

& payables. Earlier, these SME customers had

management system through APIs and helps the

to do manual reconciliation by pulling financial

merchant in tracking receivables and identifying

statements from banks and book of accounts from

settlement discrepancies. Recko is built on AI-

the accounting platform.

powered algorithms that are designed for speed,

Funding -

scaling, and accuracy; which helps them reconcile

Launched in: 2017 Founders: Anish Achutan, Mabel Chacko, Ajeesh Achuthan Category: Neobank

Launched in: 2017 Founders: Saurya Prakash Sinha, Prashant Borde Category: Fintech Enablers

is

solving

a

complex

problem

of

Raised total funding of $37.4 M from investors like

transactions in a matter of minutes.

Tiger Global Management, 3one4 Capital, BEENEXT,

Funding -

Speed Invest, etc.

Raised total funding of $1 M from investors like

The Digital Fifth View:

Prime Venture Partners and other marquee angel

Banking has always been the secondary need of

investors.

customers as a core requirement of the customers

The Digital Fifth View:

are always linked to “housing”, “e-commerce”,

Reconciliation

“education” etc. This has led to the trend of open

challenge for any company dealing with financial

banking platforms that enable customers to do

transactions attached to business transactions

banking from wherever his business is managed.

and especially when it involves multiple sources

Open has bridged this gap by providing banking

of data and complex transaction flows. AI-enabled

services on accounting platform. This trend will see

reconciliation platform mapped with transaction

the extension of financial services to these SMEs

flow and handling complexity would be in a better

as platform companies like Open will have better

position to sort out reconciliation and flag out

insights into customer’s cash flows and business.

discrepancies.

has

always

been

a

major


18

India Report

GRAMCOVER

PERPULE

Category: Insurtech

Launched in: 2016 Founders: Abhinav Pathak, Saketh BSV, Yogesh Ghaturle Category: Payments

Brief –

Brief –

Bengaluru-based Gramcover is a digital insurance

Bengaluru-based start-up Perpule is a retail

platform company providing affordable insurance

technology company providing India’s first self-

solutions to the low- and middle-income segments

checkout enabler and self-ordering solution for

in India.

offline stores, food outlets, malls and cafeterias.

Innovation –

They have also launched a next-gen POS billing

Launched in: 2016 Founders: Jatin Singh, Rishabh Garg, Dhyanesh Bhatt

Gramcover uses technology-led distribution and

solution called UltraPOS.

servicing model to reduce the inefficiencies and

Innovation –

transaction costs involved in purchasing insurance

Perpule is working with the philosophy to make the

policies. Their innovation lies in building the

retail shopping experience seamless by enabling

platform to cater to the needs of rural customers

cashless and counterless services. Perpule has built

and provides support for all kind of insurance

mobile-based checkout solutions aimed for offline

products include life, health, crop, cattle, and motor.

shopping and improving customer experience by

They also have Mobile Insurance Platform enables

reducing queues at checkouts and making stores

their partners to onboard their customers digitally

smarter. Perpule also launched UltraPOS which

anywhere, anytime and issuing Insurance Policies

render traditional billing systems obsolete with in-

instantly. Technology platform supports multiple

built features such as analytics, inventory and staff

premium collection options well suited for rural

management tools. This solution also gives retail

customers. Gramcover’s proprietary algorithms

chains a platform to manage orders and inventory

embedded into their tech platform assists the POS

for both e-commerce as well as in-store sales from

to identify the right risk cover for their customers.

the store itself.

Funding -

Funding -

Raised total funding of $1.2 M from Omnivore.

Raised total funding of $5.3 M from Investors like

The Digital Fifth View:

Prime Ventures Partners and Kstart.

Fintechs will continue to drive innovation to build

The Digital Fifth View:

solutions designed for specific needs of Rural India catering all kind of financial needs including insurance and investments. The rural segment has its challenges such as non-availability of a digital footprint, small size tickets, documentation. Companies working on to address these challenges through the technology-enabled platform will make good inroads such as Gramcover addressing demands of risk management of Rural India.

Offline stores have always struggled for better customer experience as compared to online stores for better checkout. Bringing the online experience of checkout and cashless payment at offline stores will dramatically change the way offline stores operate. Perpule is making an effort in this direction and is likely to scale well.


by The Digital Fifth

India Report

Credolab

Launched in: 2016 Founders: Peter Barcak Category: Fintech Enablers Brief – Singapore-based Credolab is in the B2B business of selling its credit scoring tool that uses mobile phone metadata to help those in financial institutions with the underwriting of loans and credit cards. Innovation – Credolab develops bank-grade digital scorecards for banks, consumer finance companies, auto lenders, online and mobile lenders, insurance companies, and retailers from the best alternative data source - smartphone device metadata. AI-based algorithm crunches over 500,000 features from opt-in smartphone metadata to find the most predictive delinquent behavioural patterns before converting them into credit scores. Funding Raised total funding of $3.2 M from Investors like Walden International, Fintonia Group and FORUM. The Digital Fifth View: Large section of society across countries always struggle to get credit due to absence of bank driven credit score. Alternate credit score based on unique algorithm plugs this gap by making such customers be part of formal credit programs be it a credit card or small loans. Credo labs have uniquely built this solution to help in underwriting to smaller loans.


20

India Report

NeoEntrants Lateral Movement from Different Sectors into Fintech Financial services are normally not

built on the direct linkage of credit

information of milk deposits by

the primary need of the customer

with the actual use of credit. They

farmers

and are always linked to a real

provide credit lending instead of

quantity of milk deposited. Being a

transaction like buying a house,

cash disbursement to ensure zero

cloud-based platform, it captures

shopping, education etc. As fintech

diversion of funds and to enable

entire historical information on milk

services are available via Open

a cashless system. For example,

collections from all farmers.

APIs through partners, many large

Farmers need to procure seeds and

crossing

fertilizers, Farmart enables farmers

So far, the SmartMoo™ platform

start-ups

over to fintech. This movement will

to obtain the same from partner

accelerate as these entities • Have low cost of customer acquisition (as customers are already acquired) • Have deep insights on customers • Can simplify customer journeys

retail outlets and Farmart provides

have

started

money to outlets & collect money from farmers at a later stage.

including

quality

and

& suite of apps touch over two billion litres of milk annually. Since Stellapps touched upon complete milk distribution value chain and they have the data of milk production

Farmart introduced the concept of

& collection from each farmer, they

subscription-based farming services

built financial lending services stack

which works on membership fees

on its platform.

Many of these NeoEntrants may

for a season and obtain credit facility without charges.

Stellapps mooPay platform brings

buyout fintech start-ups to fast-track the movement.

Case study – Stellapps

Case Study – Farmart

Founded

attractive

in

2011,

Stellapps

Farmart was formed in 2018 to

has digitized & optimised Milk

meet farming needs to farmers be

Production, Milk Procurement &

it requirements of seeds, tractor

Cold chain Management through

for

SmartMoo™ platform which helped

ploughing

and

other

farm

machinery. They help small holder

dairy

farmers get access to low-cost

maximize profits while minimizing

digital credit by providing them with

effort.

a virtual credit card through which

value chain of milk distribution

they purchase farm inputs at its

by tapping at source in villages at

offline retail channels.

collection centres till milk reaches

Farmart

business

model

of

providing small credit to farmers is

farmers

and

Stellapps

cooperatives

targeted

entire

to dairy. They have built IoT (internet of Things) enabled platform which analyses and manages complete

financial

products

including loan and insurance to the rural population and optimises the cost of doing operations in rural India for financial service providers. Their value proposition has been building an alternate credit score for these small farmers who don’t have a bank-based credit score. They have built an algorithm based on the farmer’s historical data of milk collection, called MooScore. Stellapps disburses loans to the farmers Jana

in

Small

Akshayakalpa

collaboration Finance Organic

with

Bank Milk

and


by The Digital Fifth

India Report

Farmers need to procure seeds and fertilizers, Farmart enables farmers to obtain the same from partner retail outlets and Farmart provides money to outlets & collect money from farmers at a later stage.

Lateral Movement


22

India Report

Case Study – Practo

Founded in 2008, Practo connects people with everything they need to take good care of themselves and their family - assessing health issues, finding the right doctor, booking diagnostic tests, obtaining medicines, storing health records or learning new ways to live healthier. So far, Practo has expanded into 15 countries, connected with 2 lakhs healthcare providers and catered 50 M appointments in a year. Practo has a built-in suite of solutions/services for patients, doctors as well for hospitals. On strength of such a large connection base of patients and doctors, Practo is well placed to get into financial services space which allows them to bundle their core health services with financial needs of patients. Practo has partnered with RBL Bank to launch a cobranded health-centric credit card – RBL Bank Practo Plus — powered by Mastercard. Practo card benefits include unlimited online consultations with doctors 24×7, One free full-body health check-up and for every INR 100 spent on this card, cardholder earns one unit of Practo Health Cash, which can be used while availing Practo services. This provides a good value proposition to patients in managing their health profiles along with managing payments through the card.

Case Study – Arvi

Founded in 2018, Arvi is a healthcare management platform designed for millennials to actively track, monitor and improve health outcomes of parents. Arvi is trying to bridge fragmented gaps among multiple stakeholders – from doctors to hospitals to diagnostics to insurance to emergency support through their platform. Arvi has introduced subscription-based services covering healthcare monitoring, hospital assistance coupled with the health insurance package. The solution breaks down the complexities of insurance and improves the purchase experience of customers by directing them to the relevant insurance plan by using an intelligence layer with the help of AI. Arvi works with patients to digitise past health records and AI layer works on the health records of patients. It intelligently uses the attribute of “mobile chat” based medium to understand the customers’ needs and recommends them a matching product.


by The Digital Fifth

India Report

Founded in 2014, Square Yards offers cutting-edge technology that empowers customers with credible data, inspiration and knowledge, while connecting them with in-house experts who handhold them from the start of their home search till property handover. So far, Square Yards has been able to connect with 500+ property developers and served more than 30K customers. Square Yards is a market leader in real estate distribution, with an annual Gross Transactional Value (GTV) of over INR 5,000 Cr. (close to US$ 800 Million) in FY 18-19, with a 100% growth forecast for FY 19-20. Square Yards announced it’s an aggressive investment in technology for its mortgage advisory platform-Square Capital intending to become the largest online to offline (O2O) loan aggregator in India. Square Capital, uses its technology stack to make mortgages easy and convenient for home seekers with completely automated workflows that include online identity and credit verification. They also launched another product called Square Connect which is India’s first and largest mobile-only aggregation platform for real estate brokers, financial institutions and online firms, providing them access to much larger inventory. Square Yards and Square Capital platform offer an integrated consumer experience that boasts a 17% client repeat rate and integrates with more than 90 banks and NBFCs.

Ola is India’s largest mobility platform and one of the Walmart owned Flipkart is India’s one of the largest eCommerce marketplace with over 80 million products. Flipkart has approx. 100 million registered users while they have 100 thousand sellers listed on their platform. Flipkart manages complete customer behaviour by monitoring data points of visiting customers while also handles payments records of customers. Flipkart claims to be tracking 500 to 1,000 data points to gauge a customer’s ability and intent to repay loans. Flipkart has already moved into Fintech space with the acquisition of payment app “PhonePe” which facilitates payments based on UPI. Flipkart has also entered into credit segment by launching its credit card in tie-up with Banks. Flipkart is developing a video-based know-yourcustomer (KYC) solution to offer instant credit to users purchasing from its platform. It has also been working with smaller fintech start-ups to offer ‘cardless credit’ and financing options at the checkout.

world’s largest ride-hailing companies, serving 250+ cities across India, Australia, New Zealand, and the UK. The Ola app offers mobility solutions by connecting customers to drivers and a wide range of vehicles across bikes, auto-rickshaws, metered taxis, and cabs, enabling convenience and transparency for hundreds of millions of consumers and over 1.5 million driverpartners. Ola had launched Ola wallet, which allows better checkout experience to customers. This wallet also allows payments options similar to other wallets in the market. Ola launched Ola Money in 2015 with a short-term credit offering, called Ola Post-paid, which allows a customer to pay for expenses at every 15 days. Ola has also tied up with SBI and VISA to launch its own branded credit card for which Ola has tied up with various brands to provide offers to a customer on its cards and build rewards. The company plans to issue 1 million cards in the first year, leveraging its 150 million customer base.


24

India Report

Top 30 Fintech Influencers by The Digital Fifth Akhil Handa

Alok Mittal:

Anand Kumar Bajaj

Head (Fintech & Partnerships, Mobile Banking): Bank of Baroda

CoFounder & CEO, Indifi

Founder & CEO Paynearby

https://www.linkedin. com/in/akhilh/

https://www.linkedin. com/in/alok-mittal-590a/

https://www.linkedin. com/in/anandkumarbajajinnovation/

Anish Achuthan

Anna Roy

Ashneer Grover

Co-Founder & CEO : Open Financial Technologies Private Limited

NITI Aayog

CEO & Co - Founder at BharatPe

https://twitter.com/ annaroy9?lang=en

https://www.linkedin. com/in/anishachuthan

https://www.linkedin. com/in/ashneer

Ashok Kumar ER

Asish Mohapatra

Bhavin Turakhia

CEO & Co Founder at Scripbox

Co-Founder & CEO- OfBusiness

Co-founder & CEO, Zeta India

https://www.linkedin. com/in/erashok/

https://www.linkedin. com/in/asish-mohapatra-22685a28/?originalSubdomain=in

https://www.linkedin. com/in/bhavin79/?originalSubdomain=in

Bhupinder Singh

Gowri Mukherjee

Harsh Pokharna

Founder & CEO: Incred

Co-Founder at CreditMantri

Cofounder & CEO OkCredit

https://www. linkedin.com/in/ gowri-thyagarajanmukherjee-4253652/

https://www.linkedin. com/in/harsh-pokharna58437a45/

Harshil Mathur

Harshvardhan Lunia

Lalit Keshre

: CEO & Co-Founder : Razorpay

Co-Founder & CEO at Lendingkart

Cofounder & CEO: Groww

https://www.linkedin. com/in/harshilmathur/

https://www.linkedin. com/in/harshvardhanlunia-1189887/

Nitin Chugh

Nitya Sharma

CEO, Ujjivan Small Finance Bank

Co-Founder & CEO Simpl

https://www. linkedin.com/in/nitin-chugh-b86304a/?originalSubdomain=in

https://www.linkedin. com/in/nityasharma1

https://www.linkedin. com/in/bhupindersingh-incred/?originalSubdomain=in

https://www.linkedin.com/ in/lalitkeshre/

Prashanth Ranganathan, Founder, CEO at PaySense Pte Ltd https://www.linkedin. com/in/prashanthr/


by The Digital Fifth

India Report

Praveena Rai

Rajan Anandan

Ravish Naresh

Chief Operating Officer: National Payments Corporation Of India (NPCI)

Managing Director, Sequoia Capital

Co-Founder / CEO, Khatabook.com

https://www.linkedin. com/in/praveena-rai6604b42/

https://www.linkedin. com/in/rajan-anandan-2481b814/?originalSubdomain=in

https://www.linkedin. com/company/khatabook/

Sachin Bansal

Satish Pillai

Satyam Kumar

CEO CRIDS

CEO. TransUnion CIBIL

CEO NAVI Financial Service (Formerly BAC Acquisitions Pvt Ltd)

https://www.linkedin. com/in/satishpillai/

CEO and Co-Founder: LoanTap

https://www.linkedin. com/in/sachinbansal/

https://www.linkedin.com/in/ satyam-kumar-02385910/?originalSubdomain=in

Shivani Siroya

Sujatha Mohan

Suniti Nanda

Founder: Tala

RBL Bank

https://www.linkedin. com/in/shivanisiroya/

Head - Digital and New Initiatives

Fintech Officer - Government of Maharashtra II Leading Mumbai Fintech Hub

https://www.linkedin. com/in/sujathamohan/?originalSubdomain=in

https://www.linkedin. com/in/suniti-nanda-67999ba/

Vinay Bagri

Shalini Warrior

Yashish Dahiya

CEO Co-founder at Niyo Solutions Inc

Chief Operating Officer: Federal Bank

CEO & Co-Founder, PolicyBazaar.com

Niyo solutions

https://www.linkedin. com/in/shalini-warrier-8a6147171/

linkedin.com/in/yashish-dahiya-89944b198

https://www.linkedin. com/in/vinayniyo/


26

India Report

INDIAN FINTECH LANDSCAPE BY THE DIGITAL FIFTH 2006 - 2010 LENDING MARKETPLACE

2011

2012

2006 - 2010

INDIAN FINTECH LANDSCAPE BY TH 2013

2014

2011

2015

2016

2012

2017

2018

2013

2019

2014

2015

CONSUMER LENDING

LENDING MARKETPLACE SME LENDING CONSUMER LENDING

P2P LENDING FINANCIAL INCLUSION

INDIAN FINTECH LANDSCAPE BY THE DIGITAL FIF

NEO BANK / ACCOUNTING

SME LENDING 2006 - 2010

2011

2012

2013

2014

2015

2016

20

NEO-ENTRANTS

LENDING MARKETPLACE B2C P2P LENDING PAYMENTS

CONSUMER

B2B LENDING PAYMENTS

FINANCIAL INCLUSION INVESTMENT & PFM SME LENDING

NEO BANK / ACCOUNTING P2P LENDING

INSURANCE

REGTECH

FINANCIAL NEO-ENTRANTS ENABLERS INCLUSION FINTECH

Compiled by Sameer Singh Jaini NEO BANK / B2C ACCOUNTING

sameer@thedigitalfifth.com

https://www.linkedin.com/in/ssjaini

PAYMENTS

NEO-ENTRANTS

B2B

B2C PAYMENTS PAYMENTS

INVESTMENT B2B PAYMENTS & PFM INVESTMENT INSURANCE & PFM INSURANCE

REGTECH REGTECH

FINTECH ENABLERS FINTECH

ENABLERS

Compiled by Sameer Compiled by Sameer Singh JainiSingh

Jaini sameer@thedigitalfifth.com https://www.linkedin.com sameer@thedigitalfifth.com https://www.linkedin.com/in/ssjaini


by The Digital Fifth

India Report

INDIAN FINTECH LANDSCAPE BY THE DIGITAL FIFTH

LANDSCAPE BY THE DIGITAL INDIAN FIFTH FINTECH LANDSCAPE BY TH

2013

ifth.com

2006 - 2010

LENDING MARKETPLACE

2014

2011

2012

2006 2015 - 2010

2013

2014

2016 2011

2015

2016

2017 2012

2017

2018 2013

2018

2019

2019 2014

2015

CONSUMER LENDING

LENDING MARKETPLACE SME LENDING CONSUMER LENDING

P2P LENDING FINANCIAL INCLUSION

INDIAN FINTECH LANDSCAPE BY THE DIGITAL FIF

NEO BANK / ACCOUNTING

SME LENDING 2006 - 2010

2011

2012

2013

2014

2015

2016

20

NEO-ENTRANTS

LENDING MARKETPLACE B2C P2P LENDING PAYMENTS

CONSUMER

B2B LENDING PAYMENTS

FINANCIAL INCLUSION INVESTMENT & PFM SME LENDING

NEO BANK / ACCOUNTING P2P LENDING

INSURANCE

REGTECH

FINANCIAL NEO-ENTRANTS ENABLERS INCLUSION FINTECH

Compiled by Sameer Singh Jaini NEO BANK / B2C ACCOUNTING

sameer@thedigitalfifth.com

https://www.linkedin.com/in/ssjaini

PAYMENTS

NEO-ENTRANTS

B2B

B2C PAYMENTS PAYMENTS

INVESTMENT B2B PAYMENTS & PFM INVESTMENT INSURANCE & PFM INSURANCE

REGTECH REGTECH

FINTECH ENABLERS FINTECH

ENABLERS

https://www.linkedin.com/in/ssjaini Compiled by Sameer Singh Jaini sameer@thedigitalfifth.com https://www.linkedin.com Compiled by Sameer Singh Jaini sameer@thedigitalfifth.com https://www.linkedin.com/in/ssjaini


India Report

28


by The Digital Fifth

Our Team Sameer Singh Jaini CEO & Founder, The Digital Fifth Recognized among the esteemed Fintech Asia Top 100 by nextmoney.org, Sameer leads the The Digital Fifth team. A digital enthusiast with over two decades of experience spanning across Asia, Europe and America, he has won multiple Best CIO and Innovation Awards, including one for the industry’s First Aadhaar Based ATM. Sameer has implemented end to end digital banks in Europe and led large banking initiatives, including turnarounds in the USA and Europe for Finacle. He has led digital practices (internet banking, mobility, and CRM) at Finacle. Sameer has been a part of core teams responsible for setting up Kotak Mahindra Bank and Bharatiya Mahila Bank, as well as leading digital initiatives for Kotak Mahindra Bank and Citibank. You will often find him sharing his knowledge and conducting in-depth training sessions at industry events, financial institutions and educational institutions. Sameer Singh Jaini https://www.linkedin.com/in/ssjaini

Shashank Shekhar Co-founder & Head of Consulting With over 17 years of experience in managing technology set-ups, as well as security and government functions, Shashank is extremely well versed in the design and execution of digital strategy and transformation initiatives. He has managed technology infrastructure, digital banking & governance functions at banks, and also built an open banking strategy and implementation for the same, including onboarding of partners. A winner of the IDC Award for Omni Channel Framework, Shashank has a deep understanding of banking technologies and is passionate about staying ahead of the game in the ever evolving fintech space. Shashank Shekhar https://www.linkedin.com/in/Iamtheshekhar

R Sreekant Co-founder & Head of Sales and Partnerships He has been responsible for driving revenue through regular inventory sales and sponsorship sales for large events and has managed and organized large event in B2B (Industry body events, knowledge sessions) and B2C (lifestyle, fashion and entertainment) events. Sreekant has managed end to end digital marketing assignments for varied exclusive clientele in the automobile, consumer durables, lifestyle products and BFSI sectors; as well as managed the P&L for channels and digital agencies. Sreekant https://www.linkedin.com/in/rudrabhatla-sreekant-0b05737

India Report


India Report

30


by The Digital Fifth

India Report

Our Services Consulting • • • • •

Business Fintech Digital Technology CTO, CEO, Co-Founder as a service (CAAS)

Partnership • Fintech Bazaar • Sales Partnership • Business Relationship

Training • Open Banking Masterclass • Digital Transformation Masterclass • Fintech Masterclass • Curated Programs


2nd Floor, 91Springboard, Kagalwala House, Behind Shaman Wheels (Mercedes Showroom), Kalina, Santacruz East, Mumbai, Maharashtra 400098 www.thedigitalfifth.com +91 98671 67676 sreekant@thedigitalfifth.com

Profile for ofbusiness12

The Digital FIfth  

The Digital FIfth

The Digital FIfth  

The Digital FIfth

Advertisement