In the last 7 to 8 years, the fintech industry has experienced immense growth all over. A countless number of fintech startups have begun their journey in the last few years and have already put their name on the list of top fintech companies.
As of 2020, the global market size value of the fintech industry is $110.57 billion. Fintech or financial technology is a form of technology that is challenging the traditional method of providing financial services to people.
Now in the fintech industry, there is a thing called credit score, and everyone is dependent on them, including consumers, business ventures, and purchasers. In this article, we will learn how credit scores play an important role in the fintech industry. So without any further, let’s get into the business.
“The major winners will be financial services companies that embrace technology.” – Alexander Peh
In simple terms, a credit score is a number that decides your creditworthiness. The number is between 300 to 850. The more your number is the more is your creditworthiness. This score actually depicts your chances to pay off the money that you owe to the lender.
This helps any kind of financial institution to understand if you are dependable enough to pay the loan if they lend you. If your credit score is high, then the chance of getting a loan and credit increases for you, if you want to buy something. If the score is lower then, the chances of getting a loan decrease.
There are different credit bureaus that check your credit scores and make a report on it and send it to you. The reports are based on many factors. There are three top and popular bureaus that count the credit scores of people.
There are there main international credit score bureaus that assess people’s credit score and they are:
Equifax
Experian
Transunion
Fintech Industry in India
The fintech industry in India has taken a huge turn in a few years, it has changed the way we used to enjoy financial services in the past. Currently, it wouldn’t be wrong to say that India is the hotspot for fintech startups.
As of 2021, the market size is $31 billion and it is said to be the third-largest in the world. By the next five years, we are going to see 22% growth annually. The country has 1860 startups in the fintech industry, out of those 17 have already got the Unicorn status. In the last two years, massive numbers of people have adapted to digital payments systems for any kind of transaction, and it’s only going to increase.
Role of Credit Scores in Fintech
The first thing the financial institution will do after getting your, request for the loan, is to check your credit history. If your credit score is good enough, then it will provide you with the loan and apart from that, loads of rewards and benefits. It is very good support for the fintech companies who are lending money to the borrowers.
How Credit Score is Calculated?
The way of calculating credit scores varies from bureaus to bureaus. They have their own model that they use to get the result. There are five things that are taken into consideration during the evaluation process and they are:
The credit scores help you in two ways and they are:
Your credit score lets you know where you are lacking, the complete report gives you an idea of how you can improve in that area to increase your score. The report consists of all the transactions that you have made.
Through a good credit score, you are eligible to get attractive offers on loans and credit cards. A credit score of 750 and above is the best to get good offers.
How to Improve Credit Score?
Pay your debt before the due date every month.
Don’t ignore your overdue bills pay them as soon as possible.
Keep in mind the credit card you use and its type.
Don’t spend too much on your credit card. Be aware of your spending and try to cut the unwanted ones.
Benefits of High Credit Score
A high Credit score has several advantages, some of which are listed below.
When your credit score is higher, you are eligible in front of banks to get loans and credit cards at considerably lower interest rates. Plus there is a chance of a discount on the processing fee of a high loan amount.
Those who have higher credit scores have a lower risk rate of not paying their debts. It basically means the chances of your loans getting approved are higher.
You are eligible for a credit card that offers good rewards and other offers like cashback as well.
Your credit limit increases, if you’re worthy, then the creditors know that you will pay your debt on time, this increases their trust which in return increases the credit limit.
Attractive Car insurance and home insurance rates are offered to those with good credit scores.’
Less number of documents is needed by lenders from you.
Guarantors are not needed when you are taking a loan if you have a good credit score.
Getting loans or credits can be quite a hassle but if you have a good credit score, then lenders won’t hesitate to lend you the money. Fintechs take the help of credit scores and realize who to lend money and who do not. The credit scores assure the fintech, about your credit risk and the money that they are about to lend,
FAQ
Why do financial institutions look at your credit scores?
Financial institutions take the help of credit scores to determine what kind of borrower you will be and if you are creditworthy or not.
Who uses credit scores?
Credit scores are used by financial service givers, especially lenders.
What is a good credit score?
A credit score of 700 or above is a good one as achieving the perfect 850 is quite hard.
What are the factors that affect credit score?
Payment history, Amount owed, Credit history length, Credit mix, and New credit are the factors that affect credit score.
BharatPe became very popular after its launch in 2018 among businessmen as it solved a unique problem. BharatPe’s boost generally happened during the pandemic when no payment app was charging transaction fees below 1.5%. This was the time when BharatPe cashed in on the opportunity. They made transactions absolutely free.
This is why a lot of business owners who had to do large transactions daily, shifted to BharatPe. Today, it has more than 7.5 million active users in its app. Apart from providing free transactions, it also has solved a number of other problems. There is also a lot more to see about the business model which has grown to such an extent in such a small time. So, without any further ado, let us talk about the BharatPe business model.
BharatPe is a fintech company headquartered in Bangalore. This payment aggregator has enabled transactions without any kind of fees. It has leveraged UPI to enable this. It is a QR-based payment aggregator by which you can do any kind of transaction using the app.
BharatPe was founded by Ashneer Grover, Bhavik Koladiya, and Shashvat Nakrani. All of these founders have a great profile. Ashneer Grover and Shashvat Nakrani are alumni of IIT Delhi. Ashneer Grover is a resident of South Delhi and has also graduated from IIT Delhi. He has been working with startups for a pretty long time. Previously he was also the CFO of Grofers, the grocery e-commerce giant. Ashneer has also led the Corp Dev for Amex India.
Bhavik Koladiya has decent knowledge and experience about Fintech in general. He is heading the product and technology of the company.
Shashvat Nakrani is originally from Bhavnagar and is a student of IIT Delhi of 2015-2019. He has done his B-Tech in Textile engineering.
Business Model of BharatPe
BharatPe has a very unique business model and because of this, it has grown exponentially. The major growth of BharatPe happened during the pandemic. In this time, they devised a smart method to expand. They leveraged UPI to enable absolutely free transactions. BharatPe was providing this when its competitors were charging fees less than 1.5 %. This is why a lot of vendors started moving to BharatPe.
Making transactions free encouraged more people to use the platform. It also kind of did indirect marketing of BharatPe. When the vendors came on this platform, they started exploring the platform in a great way. The platform has been designed as a one-stop solution for all kinds of payments. They have devised various kinds of products to cater to the people.
The company has launched the Xtraincome card which is an easy transaction solution, very helpful for business owners. It also gives you a cashback of 1% whenever you do a transaction with it.
BharatPe XtraIncome Card
These applications are actually solving the main pain points of the businessman. Apart from this, they have also introduced BharatSwipe which is an innovative card swapping system. Another product is called BharatPe digital gold.
BharatPe earns its revenue by providing macro to microloans to its business owner. A working professional or businessmen get loans very easily but small business owners face problems while applying for the loan as their CIBIL score is low.
BharatPe tracks the person’s transaction using its various products like Xtremecards and evaluates their capability to return the loan. According to it, they provide microloans to small businessmen without much paperwork. They do not provide loans using the CIBIL score. This solution accurately serves the pain points of small businesses. This is the main source of revenue for the app.
BharatPe Funding
BharatPe has raised a total of $700 million. They have presently gone through 12 rounds of funding. Apart from that, the company has raised a debt of 100 crores. They have secured funding of $370 million from Tiger Global Management. Apart from that they also have acquired funding from Dragoneer group, Ribbit Capital, Coatue Management.
What is Unique about BharatPe
Recently BharatPe has upgraded itself by collaborating with NBFC which are allowed to launch a 12% club by the RBI. This will give them a lot of benefits as compared to its competitor’s who are having the same product. This is because now any customer can go ahead and invest and can get upto 12% interest. They can borrow upto 10 lakhs.
Growth of BharatPe
Since its inception in 2018, this company has shown rapid growth. Today BharatPe ranks 4th after Paytm, Google Pay, and PhonePe in terms of users. Apart from that, it was quick in releasing products which actually solved the problem of merchants and the public at large. Services like 0% fees on any transaction. Products like BharatSwipe and Xtraincome card are unique innovations to solve customer problems. They have also come up with innovative gold loans schemes.
BharatPe has an impressive business model. The whole business is working around solving various pain points of small businesses. Their products are reliable which has led to their word-of-mouth marketing initially. Today they have more than a million merchants using their platforms. BharatPe’s business model is a unique model and an entrepreneur can learn a lot from them.
FAQs
What does BharatPe do?
BharatPe is designed as a fintech company to empower small merchants and kirana shop owners. The company brings QR codes for UPI payments, Bharat Swipe, and an array of fintech products, including small business financing and more.
How many people use BharatPe?
BharatPe serves 7.5 million+ merchants in more than 140 cities of India, as of January 2022.
How does BharatPe make money?
BharatPe earns revenue by providing loans to small business merchants. A major portion of the BharatPe revenue comes from its merchants and its lending products.
Who created BharatPe?
Ashneer Grover and Shashvat Nakrani founded BharatPe in 2018.
Is BharatPe a government company?
No, BharatPe is a private fintech company founded by Ashneer Grover and Shashvat Nakrani in 2018.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Takeoff.
Investment is all about making your future a better place. It is for the financial security of their capital that one can enjoy in the future. When a person makes an investment, it is to ensure that they get to earn higher returns. Investing in mutual funds goal is not any different.
Mutual funds are a form of investment if people are able to understand it clearly. Now, individuals are able to invest on their own in mutual funds. For non-individuals like businesses, trusts, and others, Takeoff has taken responsibility since 2020. It is India’s first online mutual fund distribution platform for non-individuals.
StartupTalky brings all about Takeoff, the platform, its Startup Story, Founders and Team, Name, Tagline and Logo, Funding and Investors, Business Model and Revenue Model, Challenges, Competitors, Awards and Achievements, and more in the article ahead!
The service that Takeoff mainly provides is mutual fund distribution. The main USP is that the entire process is online and condensed from 30 days to 1 day. Companies can now have the luxury to choose from all the schemes from all the AMCs through an easy-to-access platform. They have 24×7 access and the support team is always just a call away.
Takeoff also provides KYC services for non-individual clients like businesses, trusts, government bodies etc. Gone are the days when one has to send mountains of documents to the AMCs and has to suffer the two months of hassle while their KYC was being processed. The Takeoff team takes only minimal documents and gets the KYC processed within just 7-10 working days.
The mutual fund industry has witnessed a growth of 30.82% from 2020 to 2021 with Rs. 26.07 trillion AUM (Assets under Management) in 2020 to Rs. 34.10 trillion AUM in 2021.
Split of investor accounts:
The total number of investor accounts of Takeoff as of March 21 was 9,78,65,529, from which 7,91,859 (0.81%) is Institutional investor accounts and 9,70,73,670 (99.19%) are Retail and HNI investor accounts.
Split of industry assets:
The Total industry assets of Takeoff as of June 21 is Rs. 34,10,403 crore, from which Retail investor assets is Rs. 18,33,568 crore and Institutional investor accounts are Rs. 15,76,835 crores.
Takeoff – Founders and Team
Prasad R. Lendwe – Founder of Takeoff
Takeoff is founded by Prasad R. Lendwe, an Electrical Engineer. He is an MBA droupout from Kalina University, Mumbai. Apart from being the founder of Takeoff, he runs a Finance based YouTube channel, Convey by Finnovationz as well and has more than 1.8 M Subscribers.
The current size of the Takeoff team is 15-18 members. The work culture in Takeoff is very relaxed and informal. They believe in working hard and playing harder. It basically means, during office hours, one can find them hunched over their laptops. During lunch, however, the team can be found engaging in spirited table tennis tournaments and other games.
Takeoff – Startup Story
Before starting Takeoff, the company was focused on their Youtube channel Convey by FinnovationZ. Through this channel, they were able to spread financial awareness for the past 6 years.
In Jan 2020, they decided to take some of their own advice and tried to invest on behalf of their company. There are some surplus in the current account and the fact that they are earning 0% interest on it bothered them a lot. After using platforms like Zerodha and Groww in the past, it was wrongly assumed that the process would be just as easy.
It was only after the actual process started, they realised how difficult it is in reality. As there was no dedicated platform working towards the mutual fund investment needs of non-individualism, the idea of the formation of Takeoff first came into their mind.
Takeoff – Mission and Vision
Takeoff’s short-term vision is to spread awareness and encourage more non-individuals to begin their mutual fund investment journey. They intend on doing this by providing top-quality service and exploiting their first-mover advantage.
Their long-term vision is to emerge as a complete investment solution for non-individuals and to become a one-stop destination for any kind of investment that companies and other non-individuals want to indulge in.
The core belief is centred on the fact that non-individuals, whether its companies, trusts, proprietors, or any of the others, deserve the same facilities and the same ease that individuals do. In the past few years, thousands of platforms have cropped up for retail investors, but companies have, sadly, been left out. It is Takeoff intention to right this wrong and fixes the imbalance.
Takeoff – Name, Tagline, and Logo
Takeoff logo
Takeoff Fintech Pvt. Ltd. is the officially registered name of the company.
Takeoff is working on a distribution model. The platform is currently free to use for all of their clients and it will always be free to use. Any non-individual can register and open accounts in Takeoff. No amount is charged from the clients. The revenue comes from the AMC (Asset management company). A fixed brokerage amount is paid for each AMC.
Takeoff – Challenges Faced
The lack of awareness among the non-individuals in India that they too can invest in mutual funds on behalf of their organization is the most challenging part of Takeoff. The conversion is not easy from a lead to an active investor, as the company has to explain the whole product and the industry at the same time over a very short span of time to their clients.
Takeoff – Growth
The journey from 0 to 100 Clients
The journey was of severe ups and downs, like a roller coaster. Takeoff got their first client in December 2020 on their beta version and after some infertile months, the platform started gaining recognition, through several marketing campaigns. Currently, they have over 550 registered users and the company is experiencing slow but steady growth, they believe in value over volume.
Customer Retention
Takeoff believes that the best customer retention can be achieved only through superior customer service. Investments are a fairly complicated process, even if one makes it seems as easy as possible, clients will still have doubts. It is very important to make the clients feel as though the company is with them at each step along the way, in case they encounter any kinds of difficulties. This process has helped Takeoff in retaining its clients.
Takeoff – Advertisements and Social Media Campaigns
Takeoff has tried various platforms and a plethora of campaigns to generate leads and convert them to active investors. LinkedIn ads and their own Convey YouTube channel have been proved a constant success for the company. The company is looking forward to more events and other activities so that they can reach out to the target audience and make the platform enriched with the soul vision of the company.
Takeoff – Future Plans
The company is doing quite well. It has started to make a name for itself and is experiencing a steady inflow of clients in future. Both their client base and the AUM have started to increase.
Takeoff is India’s first online mutual fund distribution platform for non-individuals. They help non-individuals like companies, government bodies etc to invest in mutual funds.
In the financial services sector, insurance is always an area that seems like quicksand for the people who lack proper knowledge. Besides, the insurance sector is one that has always been devoid of proper, credible advisors who would steer their clients to fortify their future. This is where the digital insurance advisory platforms are proven to be a huge boon. Ditto is one of the latest online insurance advisory platforms that was founded by the co-founders of Finshots in February 2021.
Ditto Insurance has been headquartered in Bengaluru and has already raised Rs 4 crore from Zerodha in an initial funding round, the latter also picked up a majority stake in it. With Ditto, the founders hope to reiterate the success they gained with Finshots, which was launched in 2019 and already boasts of a subscription of over 5 lakh readers.
So, let’s check out Ditto, its Founders and Team, Funding and Investors, Challenges, Future Plans, Products and Services, Name, Tagline and Logo, Startup Story, and more.
Finshots (The parent company of Ditto Insurance) is a 3-minute daily newsletter giving readers insights about all things economics and finance. Their vision is to create financial literacy among Indians by simplifying finance and financial products.
The core belief of Finshots is that financial literacy is like basic arithmetic every person should know. Everyone should understand what’s happening with the economy, or what’s going on behind a financial scam – but the news is often full of technical jargon, making it obscure to the layperson. Hence, their main aim is to simplify finance for everyone and give trustworthy information that people can rely on.
Ditto – Industry
Finshots caters to the Fintech industry. They don’t have a target market for Finshots. They want to build an inclusive community of people willing to learn and understand financial concepts. On the other hand, for Ditto, their target market is the working population looking for insurance for themselves and their loved ones.
Finshots currently has a user base of over 700K readers, while Ditto has helped more than 10,000+ people with their insurance queries.
The fintech industry has massive scope, since investments, as well as insurance penetration, is severely lacking in the country. Only close to 2-3% of Indians have invested in equities, and insurance penetration is a meagre 3%. So the scope for growth in the industry is immense.
Ditto – Starting Up
After completing their MBA course, Bhanu Gurram, Shrehith Karkera and Pawan Kumar Rai founded Finception in 2018. Lokesh Gurram, an IIT Delhi graduate, worked for Samsung in South Korea for two years before joining the venture.
They saw that financial news from major media houses was loaded with industry-specific terminology, as though it wasn’t intended for the masses. And so, Finception delivered explanatory long-form stories for a year. The objective was clear: To simplify financial news for the masses.
In 2019, a separate brand called Finshots came about when the team realized that audiences suffered from information overload.
Finshots delivers only one news a day. Readers spend just three minutes each day but in a month, they would have read about 28 topics.
Finshots doesn’t spend a dime on advertising. Finshots’s subscriber base has grown to 500,000 just by the word of mouth. While Finshots educates people about the financial markets, readers are still left asking which financial product is best-suited to their needs.
Then they launched Ditto, the latest product under the Finshots brand aimed at simplifying insurance policies for people. This is one of the many ways Finshots intends to simplify financial products and financial planning for the masses.
Finshots is a financial newsletter that one can read in no longer than 3 minutes. They also have a podcast that covers the same content as their newsletter. Their product tries to resolve the problem of lack of financial literacy among people by offering information in plain, simple, lucid English, which is their USP.
They started Finshots back in 2019 when they realised people wanted finance content simplified and this was a market gap they wanted to fill. They later launched Ditto Insurance, their latest venture which provides insurance advice. Ditto aims to help millennials make better financial decisions and they’ve started with insurance. They want to make a dent in the insurance industry by educating the masses so that people can compare policies, narrow down their choices per their requirements, avoid pitfalls and buy the policy best suited for them.
Ditto – Founders and Team
Ditto Founders
At IIMA, Bhanu, Shrehith Karkera and Pawan Kumar Rai were batchmates. At the time, Rai was working on a way to simplify stock markets for millennials. They say that millennials must be helped traversing these jargon minefields.
The founders were also a part of IIM Ahmedabad’s IIMAvericks program which gave them a monthly stipend. Nevertheless, Karkera taught part-time classes at coaching institutes like T.I.M.E. and Career Launcher, so Finshots could hire more interns and grow.
Shrehith handles most of Finshots content, while Bhanu & Pawan handle marketing and sales. Lokesh manages product and tech.
Finshots have over 80 employees at present, working from home. But they try to create a work environment that makes everyone feel like they’re having fun in what they’re doing, rather than being crippled with piles of work. They also organise monthly activities to keep up team spirit.
When it comes to hiring, they look more at the enthusiasm and work ethics an incoming employee brings to the team, rather than their background and resume.
Ditto – Name, Tagline, and Logo
Ditto Logo
The idea of Finshots is ‘financial shots’ – think of it like coffee shots you take in the morning. That’s exactly how they want people to consume financial information, one shot at a time.
“Our philosophy behind naming our insurance advisory as ‘Ditto’ is that we want to tell people what kind of policy we would buy if we were in their shoes. We want to tell them exactly what we would do, and they can then make a decision based on that. “
Ditto – Business Model and Revenue model
Finshots is completely free and they don’t intend to make any revenue off of it.
“That’s part of the mission behind Finshots – we want to democratise financial information, offering our content for free is part of it. “
Ditto, on the other hand, earns money through policy sales. They function as a distributor and help people with purchasing policies.
Ditto – Challenges Faced
The biggest challenge faced by Ditto was the fact that insurance is a push product. The industry practices include mis-selling policies and spam calling. The founders believe that a product like insurance has the power to make or break the financial strength of households and that’s why their approach towards insurance is to research, give the right advice, and simultaneously ensure peace of mind to families.
On the other hand, the biggest challenge for Finshots was expanding the reach of the newsletter. It’s definitely not easy to make lakhs of people subscribe to and read your content on a regular basis. And there aren’t any viral marketing shortcuts here. So they mostly relied on good-old word of mouth marketing, social media and college partnerships. They sent college newsletters to students and got their first 1000 readers.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byYap.
Technology has transformed the way financial transactions and operations happen. Today making and accepting payments, receiving loans, everything has become simpler than ever before. All thanks to tech startups, that are coming up with amazing products that have made financial operations much easier for financial institutions, business owners, and consumers. Chennai-based ‘Yap’ is one such startup that this revolutionizing the way banks and other financial institutions offer services to their customers. Yap provides tools that let banks and financial institutions design customized and convenient solutions for their customers. Here is more about Yap.
Yap offers a payments-as-a-service infrastructure that can handle all types of retail payment assets. Yap’s Application Programming Interface (API) platform allows digital platforms, fintech companies, and offline businesses to offer personalized solutions to their end customers, by linking them with other fintech platforms and banking and non-banking financial firms.
Yap’s functional APIs, let its clients receive and transfer funds through Wallet & Cards, Cross Border Payments, Gift Cards, Fleet Spends, Just-In-Time Funding, UPI as well as other payment methods. Consumer, corporate, small business, and credit card loans are among the products it offers.
Yap’s modular platform ‘bank in a box’ enables its clients to offer products such as opening bank account, credit, online payment, toll payment, foreign exchange solutions, etc.
Many companies in Nepal, India, New Zealand, the UAE, Australia, and the Philippines are served by YAP. Around 20 Indian banks, including ICICI Bank, Yes Bank, and RBL Bank, as well as numerous consumer internet companies like Ola, Cred, Swiggy, and also large NBFCs like Muthoot, TVS Credit, Bharat pe, Razorpay, Finin, etc use YAP’s services on the lending space.
Yap – Latest News
In March 2021, Yap raised $10 Million in funding from investors like Flourish Ventures and Omidyar Network India. The fundraising round included participation from YAP’s current investors, including Beenext, 8i Ventures, and Better Capital.
“We are uniquely poised to cater to new cohorts of distributors as more firms embed financial services into their digital platforms. This investment allows us to strengthen our technology teams, build new capabilities as well as reach new markets across Asia,” Madhusudanan R, co-founder at Yap, said.
Madhusudanan R is the Chief Executive Officer & Founder at YAP. He is a fintech entrepreneur with deep-rooted experience in building and scaling Payments businesses across Asia.
Prabhu R
Prabhu R is the Co-Founder & Chief Operating Officer at YAP.
Yap – Startup Story
Madhusudanan R. and Muthukumar A and came up with the Yap idea during the office tea breaks. The founders who worked at Visa Inc in Mumbai from 2010 to 2012, often realized how big banks were lagging behind in digitizing their services. The focus of these conversations was always on how the financial industry might fix this problem. Finally, Madhusudanan and Muthukumar, came up with a solution themselves and founded Yap in 2014.
The Yap founders observed how banks work in India, through their combined expertise of over a decade working for Visa, Citibank, and Paypal. They understood that due to their aversion to developing new digital products, banks were unable to reach a whole new set of clients. Yap is a solution to these problems, Yap’s is empowering many banks, financial institutions, and businesses to offer various customized solutions to its customers.
YAP’s unique API (application programming interface) gives banks and fintech businesses the tools they need to create new payment systems. This shortens the time it takes for these businesses to acquire consumers who want simple and quick electronic payment options.
“When we started, banks in India didn’t use any APIs. In other markets, like the US, this phenomenon started ten years ago. In India, it started around 2014–15, when a few digital payment companies started to grow,” Madhusudanan, co-founder of YAP, told.
The firm claims to deal with 15 banks in India at the moment. Apart from providing an API for payment integration, including UPI payments, YAP also assists them in acquiring corporate clients, which are often digital financial institutions such as neobanks or the fintech divisions of big corporations.
“They don’t have to spend any money on this, and they can reach a lot larger audience without having to spend money on client acquisition,” Madhusudanan explained.
Yap – Mission and Vision
Yap’s mission statement says, “We are focused on user experience and customer retention. We are constantly thinking of new use cases and ways to serve our customers across all their financial needs as seamlessly woven into their daily routine life as possible.”
YAP is on a mission to transform every business into a fintech.
Yap – Name & Logo
Company Logo of Yap
Yap – Business Model and Revenue Model
Yap provides B2B tech solutions to financial institutions and businesses. The YAP platform connects companies to licensed banks, financial institutions, and financial infrastructure such as UPI/card networks through its extensive Application Programming Interface (API) libraries. Within a few weeks, a company may connect to YAP’s platform, choose goods and banking partners, and roll out financial products to its consumers or vendors. In addition, YAP oversees essential continuing activities like reconciliations and compliance monitoring. YAP now serves over 200 fintech with an API platform.
Madhusudanan R – Chief Executive Officer & Founder
Yap – Funding and Investors
Date
Round
Amount
Lead Investors
Mar 16, 2021
Series B
₹732M
Flourish Ventures, Omidyar Network India
Apr 21, 2020
Series A
$4.5M
BEENEXT
Feb 13, 2020
Seed Round
₹100M
Amrish Rau
Yap – Growth
Around 20 Indian businesses, including ICICI Bank, Yes Bank, and RBL Bank, as well as numerous prominent consumer internet companies like Ola and PaisaBazaar, use the service.
“We are uniquely poised to cater to new cohorts of distributors as more firms embed financial services into their digital platforms. This investment allows us to strengthen our technology teams, build new capabilities as well as reach new markets across Asia,” Madhusudanan said.
The 6-year-old firm offers comprehensive Application Programming Interfaces (APIs) to banks, startups, and consumer online businesses. The new funds (raised in March 2021) will be utilized to expand into foreign markets and bolster the team with new hires.
Yap’s major plans include expansion to new geographies and expanding the team. According to Madhusudanan R, co-founder of YAP, the company intends to grow to Bangladesh, Saudi Arabia, Oman, Egypt, Vietnam, and Indonesia.
India’s rapidly digitizing financial environment, according to Amol Warange, head of Omidyar Network India, would provide chances for YAP to expand.
“We think that digital enablers like YAP can catalyze financial inclusion and promote adoption of financial products among the next 500 million Indians who are projected to access the internet for the first time via their mobile phones” Warange added.
Yap – FAQs
What does Yap do?
Yap offers a payments-as-a-service infrastructure that can handle all types of retail payment assets. The company’s platform links banks, financial institutions, enterprises, payment networks, and merchants to build an interoperable payment platform that allows businesses to quickly design and carry out their own customized payment solutions.
Which country is Yap based in?
Yap is a Chennai-based, Indian fintech company.
Who founded Yap?
Yap was founded by Madhusudanan R and Prabhu R.
Which companies do Yap compete with?
Open Bank Project, Decentro, TrueLayer, Teller, Inc., Plaid, Konsentus, Figo, Quovo, and Instantor are the top ten competitors of YAP.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byRecko.
Most entrepreneurs stress the challenge of reconciling transactions; it’s one of those necessary evils that everyone has to deal with but no one wants to do. We’ve heard individuals complain about the necessity to reconcile payments over the years in banking and payments. Over last few years, there has been a continual increase in the number of online payments, making it tough for many businesses, banks, and financial firms to keep track of expenses flowing around the organization. Recko is a corporation that specializes in financial reconciliation. Started with the mission to help businesses manage their financial operations with agility, simplicity, and innovation, Recko aids businesses that deal with several legs of payment processing as part of their daily operations in keeping track of and reconciling all financial transactions. Recko has reconciled over 250 million payments valued at over $2 billion in its first year alone.
In October 2021, Recko got acquired by San Francisco-based Fintech company Stripe. Stripe offers a wide array of services including payment and billing services, and tools for managing business operations. By acquiring Recko, Stripe is set to expand its services further. As per the deal, Recko’s entire team will join Stripe’s remote engineering hub and will work to develop and scale Stripe’s products.
About Recko and How it Works?
Through Accounting reconciliation, businesses can keep track of their transactions. With the expansion of business, reconciliation becomes a tough job. Especially with more and more online transactions being done these days, reconciliation has become even more cumbersome. This is where Recko helps.
Recko is a Software as a service reconciliation artificial intelligence-based software that assists finance teams at eCommerce marketplaces and transactional platforms in keeping track of the entire transaction cycle and business deals in order to avoid slipping and tripping hazards.
“The finance department on the merchants’ end is continuously dealing with this complexity of matching the right amount to right order, returns/ replacements and a lot of orders also move between months. All they have excels, spreadsheets and traditional ETL (extract, transform, load) tools which are cumbersome and error-prone. This is where we come into the picture,” said Saurya Prakash Sinha, Recko cofounder and CEO.
Recko was created with the goal of providing financial stability to businesses with significant transaction volumes, such as e-commerce platforms, insurance companies, and banks, by automating the entire reconciliation process. It ensures that each transaction is recorded and that all settlements are completed on time because it is an independent third-party transaction reconciliation layer.
“This also helps when customers have to be refunded as we use many different ways to make a single payment these days (including wallets, vouchers, gift cards, net banking and CC),” added Prashant Borde, cofounder and CTO at Recko.
Besides reconciliation, Recko also helps businesses in commission calculation, Payout creation, and reporting, to aid businesses to track, manage and account money end to end.
Recko’s current team consists of 60 people with extensive experience working for e-commerce and fintech companies such as Flipkart, Amazon, Nutanix, PhonePe, Ola Money, Razorpay, and others.
Recko – Logo
Recko’ s Company Logo
Recko – Founders and History
IIT Gandhinagar alumni Prashant Borde and Saurya Prakash Sinha launched Recko in 2018.
Founders of Recko – Prashant Borde and Saurya Prakash Sinha
Prashant and Saurya are serial entrepreneurs and have have robust industry experience. Prashant Borde co-founded shared computing platform GridAnts in 2012, which was later renamed Cubeit. The platform was acquired by Myntra in 2016, after which Prashant joined Jio.
Saurya worked for industry leaders like Flipkart and Phone Pe. In 2015, Saurya co-founded urban logistics and on-demand delivery platform ‘Townrush’, which was later acquired by Grofers. Saurya joined Grofers as AVP(product) after the acquisition of Townrush. In 2017, Saurya founded Recko along with Prashant.
The duo had hands on experience of developing processes that aided the product and finance teams in contributing to the company’s growth and accelerated financial governance. This led them to discover that organizations of all sizes battle to keep track of payments and face manual restrictions when it comes to reconciliation, computations, and scaled monetary operations management. Thus Saurya and Prashant decided to intervene and help businesses to manage their finances better by simplifying reconciliation, commission calculation, Payout creation, and reporting.
According to its founders, Recko reconciled transactions totaling $2 billion in its first year of business. Grofers, Dunzo, FreshMenu, and Meesho are just a few of its clients. It also has different monetizing methods in place, depending on the client’s needs, including volume and per-transaction costs.
Following are some of the primary gaps Recko is trying to close –
Unstructured data in large quantities
Use of a large number of people
Transparency and traceability of operations are lacking.
Time and expense spent on reconciliation have grown.
AI plays a role in resolving these issues on various levels. First, algorithms aid in the extraction of relevant information and analysis from more than 80% of data, which is critical in the financial domain because fintech models would be unable to function without data.
Furthermore, because they can’t always trace an error back to its source, most organizations set aside a specific proportion of revenue error to accommodate for reconciliation checks. To close this gap, Recko automates the reconciliation process, making it possible to track financial data throughout its full lifecycle. It accomplishes this by utilizing APIs to link with payment gateways, banks, and merchant order management systems, allowing firms to track receivables and uncover settlement problems. According to Recko, this reduces manpower investment by 50 percent to 60 percent.
Recko – Mission and Vision
Recko’s mission statement says, “Recko was started with the mission to help businesses manage their financial operations with agility, simplicity, and innovation. Today’s businesses need a collaborative interlock between their finance, product, and business functions to grow exponentially and stay ahead of the competition. Be it reconciliations, payment operations or complex commission calculations; Recko does it all.”
Reconciliation – Bringing your company’s transactions up to date in terms of accuracy, efficiency, and speed.
Commission Calculation – Automate your entire charge calculating procedure and keep track of external payment SLAs.
Payout – To disburse payments to customers and subcontractors, the company integrates easily with payment partners.
Recko – Business Model & Revenue Model
Recko is a B2B company, and earns revenue by charging subscription fee from its clients.
Without writing a single word of coding programs, Recko allows financial teams to ingest, enrich, and reconcile millions of transactions in hours rather than days. Recko cuts labor by 50 to 60 percent while keeping a close eye on transactions to guarantee money goes to the right parties at the right time with the correct deductions.
Recko is now processing enormous amounts of transactional data to digitize financial control within organizations, as well as developing Machine Learning models to detect abnormalities, risk, and intelligence in the money flow.
Recko – Revenue and Growth
The revenue for the Fiscal Year 2019 was USD 388K, up from USD 186K in the previous year. Recko’s customer’s includes top marketplaces like Grofers, Meesho and Dunzo.
Recko – Funding, and Investors
In its latest round of Series A funding raised on April 2020, Recko received $ 6 million. Vertex Ventures SEA and India led the financing, with Prime Venture Partners joining as an existing investor. Here are Recko’s funding details-
iPaymy, Pulse iD, SAP Concur, Sage Intacct, G2 Deals, Bill.com, Tradeshift, Invoiced, DocuWare, Spendesk, Riovic, and SureCash are among Recko’s main competitors.
Recko – Challenges Faced
The product needed to be stable because the company was working with extremely large data volumes. As they add features to the product, it continues to evolve. The aim is that the number of problems and inconsistencies will decrease as time goes on. Since the platform handles finances, the team at Recko needs to be extra careful so that nothing goes wrong.
“We needed to be precise, and we needed to be correct at scale. The crew spent a significant amount of time double-checking the figures.”, the Recko CEO said.
On the technology side, figuring out how to process these transactions was a significant issue for everyone on the team, since this used to take them over 3-4 days to handle more than 50-60 million transactions. They can now complete it in 30 minutes.
” for reconciliation, we are almost running at 100 million transactions in one hour. So the systems are becoming much faster. The idea is how do we do this at a much cheaper cost and faster. So this is where a lot of investment is going in,” said the CEO, Saurya Prakash Sinha.
Supporting scale was one of the issues they confronted. To make scale and security a basis in the architecture, Prashant says they had to redo a major portion of the first iteration.
“As we onboarded new customers, we realized that businesses looked at data very differently across industries. We did not want to leave any stone unturned, but we had a mission — to give the best of it. We added analytics, custom reports, commission calculation, and other integrations including storage services, payment gateways, and banks,” says Prashant.
The team quickly began working with clients from various industries and geographical places. Recko introduced geographies such as Southeast Asia and the European Union. Versioning was also released to support audit logs and time travel capabilities that needed to be reworked to allow future growth.
“We are planning to open APIs as well so that they can be integrated deeper into companies’ tech stack to solve a multitude of problems. Our long-term goal is to provide enough insights that enable businesses to make financial decisions in real-time,” says Prashant.
Recko – FAQs
What does Recko do?
Recko is a Software as a service reconciliation artificial intelligence-based software that assists finance teams at eCommerce marketplaces and transactional platforms in keeping track of the entire transaction cycle and business deals in order to avoid slipping and tripping hazards.
When was Recko founded?
Prashant Borde and Saurya Prakash Sinha launched Recko in 2017.
Which companies do Recko compete with?
iPaymy, Pulse iD, SAP Concur, Sage Intacct, G2 Deals, Bill.com, Tradeshift, Invoiced, DocuWare, Spendesk, Riovic, and SureCash are among Recko’s main competitors.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byEzetap.
With mobile phones and applications changing the digital landscape, businesses have acknowledged the need for a shift in how they serve their consumers. Mobile point of sale programs, also known as mPOS apps, are becoming increasingly popular, according to industry estimates. Because of technological advancements in Bluetooth and Wi-Fi connectivity, mPOS adoption has been extremely successful all over the world including India. Bangalore-based startup Ezetap is a major mPOS solution provider in India. Here is more about Ezetap, the startup’s journey, and its functions.
As of February 2018, Ezetap announced the launch of EzeSmart, a smart GPRS gateway with Aadhaar payment and eKYC that is fully accessible.
EzeSmart, which is based on Ezetap’s global payment acceptance platform, is the first POS terminal in the country that can take all types of payments, including UPI, Bharat QR, and Aadhaar Pay. It can also take payments from a variety of mobile wallets as well as credit and debit cards. It’s a smartphone-integrated terminal that lets companies run any of their system apps on it.
The company stated to the press that EzeSmart is tailored to support the strategic and technical needs of various industrial sectors, including govt., by allowing a person with an Aadhaar-linked bank account to transact conveniently by simply touching their finger on the device’s fingerprint reader. This allows microfinance companies who deploy this terminal to provide services to rural consumers and accept payments online.
What is Ezetap?
Ezetap is one of the first companies that came up with digital payment solutions in India. The company’s first product launched in 2013, was an mPOS card reader that could be connected to a smartphone via the audio jack. Currently, Ezetap has a variety of digital payment solutions that let businesses accept digital payment seamlessly. Ezetap offers tailor-made payment solutions for different sectors like small and large retail shops, eCommerce and logistics companies, and government organizations.
From businesses to cab drivers to supermarkets and pizza delivery drivers, the technology allows anyone to accept cards. Online retailers, insurance companies, restaurants, and hotels are among the clients of the company.
Ezetap started with a single payment offering and pivoted to a SaaS model in 2020. Ezetap’s payment solutions come with many attractive features like multibank acquiring and auto-reconciliation and offer a variety of value-added services that businesses can opt for.
Ezetap – Name, Logo, and Tagline
Ezetap has made making and receiving payments as easy as a tap. That’s where the company name is derived from.
Ezetap’s Company Logo
Ezetap’s tagline is, “Transforming the world of payments”.
Ezetap – Founders and History
Ezetap was founded in 2011 by Abhijit Bose and Bhaktha Keshavachar. Both the founders had previous expertise in payments and hardware firms, and they merged their talents, skills, and knowledge to create this solution.
Abhijit Bose who served as the CEO of Ezetap exited the company in 2018, after which the then CFO of Ezetap, Byas Nambisan took over as the CEO.Presently Byas Nambisan is the CEO of Ezetap.
In 2019 Bhaktha Keshavacharalso exited Ezetap to start his own deep tech startup, Chara Technologies.
Founders of Ezetap – Abhijit Bose and Bhaktha Keshavachar
At the start of the decade, Internet connectivity and smartphones were becoming commonplace in India, and e-commerce companies were gradually gaining popularity. Ezetap founders Abhijit Bose and Bhaktha Keshavachar spotted an opportunity to make payments more widely accepted in India. Ezetap became one of the first startups to try to convert Cash on delivery shipments to electronic payments, which was one of the earliest application cases for Ezetap in the year 2013.
“We built an EMV-compliant payment device that could take payments in conjunction with a commercially available smartphone and a card reader designed and assembled in India. We also created a payments SDK that would work behind a company app, hiding the complexity and compliance rigmarole of payments behind the ‘pay’ button,” Bhaktha Chaterjee, Head of Products at Ezetap.
The company chose to stop producing its own gadgets in India in 2018 and instead started sourcing them from overseas manufacturers. The Ezetap team is highly focused on improvising its services, and there are even instances where Ezetap team members accompanied e-commerce delivery agents to the doorsteps of end-users to collect feedback on the payment experience.
Ezetap – Mission and Vision
Ezetap’s mission is to empower businesses to receive payment seamlessly via any mode of payment.
Ezetap’s mission statement says, “Our Mission is to be the single platform through which businesses complete any financial transaction with their customers, supporting every instrument and method that those customers want to use”
Ezetap’s Universal payments banking partners are Citibank, HDFC Bank, American Express, Axis Bank, ICICI Bank, Mashreq Bank, RBL Bank, State Bank of India, and Yes Bank. The State Bank of India also partnered with Ezetap as its MPOS partner, with the goal of expanding electronic payments and micro-ATM to every corner of the country. However, this SBI-Ezetap partnership came to an early end. Recently Ezetap partnered with Axis Bank for Launching the My Vyapaar app, an app dedicated to retail businesses. The app comes with many features like attractive buy now pay later options and encourages digital payment by offering exciting rewards.
Ezetap – Business Model
Ezetap pivoted to a Software-as-a-Service business model, allowing retailers to accept transactions online via physical cards, internet payments, and mobile wallets with a single click via UPI, at a time when PoS firms make money from transaction fees.
The startup has altered the payment procedures of brick-and-mortar merchants, e-commerce players, enterprises, government agencies, and financial inclusion institutions using a Software-as-a-Service payments system.
Ezetap – Revenue and Growth
Ezetap’s operating revenue increased by 3% to Rs 45.06 crore in 2017-18, up from Rs 43.77 crore the previous year. According to the papers, the net loss increased to Rs 40.47 crore from Rs 30.71 crore during the period. From Rs 78.69 crore to Rs 92.17 crore, the company’s expenses climbed by 17%.
During the time, employee benefit expenses, such as provident fund, gratuity, and compensated absences, increased by 14% to Rs 33.33 crore from Rs 29.01 crore.
For the fiscal year 2017-18, total revenue was Rs 51.70 crore, up 7.77 percent from Rs 47.97 crore in 2016-17.
As per some reports, Ezetap’s valuation on June 2021 is $126 Million.
FortunePay offers comprehensive end-to-end electronic payment platforms and services to acquiring banks and merchants.
Jun 20, 2017
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Clinknow
The Best Way To Find Shoppers, Not Just Window Shoppers.
Jun 2, 2014
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Ezetap – Competitors
The top competitors in Ezetap’s competitive set are Mswipe, Innoviti, Mosambee, Pine Labs, Payswiff, ePaisa, Bijlipay, MobiSwipe, Yoyo Wallet, Obopay, STC Pay, and PayRange.
Ezetap – Challenges Faced
According to Ezetap CEO Byas Nambisan, the traditional challenge was that payments have the friction of MDR charge that requires a specific device and adoption of some software technology. And the company has been at forefront of it, for example driving down the cost of the device. When the company first got into this business, there wasn’t any device available for less than 70 USD. Ezetap was the first to get it below the 50 USD point, which was 3000 INR at that point in time. Now it’s for 800-1000 INR and less, for the device.
There were many merchants who weren’t that ready for the deployment of this mode of payment which also served as a challenge for them. But now, as everything is turning into a digital platform, whether they like it or not, merchants have started deploying the usage of digital payment solutions in their businesses to access their customers from all over the world.
Ezetap’s Universal Payments platform is unusual in that it allows businesses to accept any type of payment, anywhere, on any device, with any banking partner of the consumer’s preference. Customers will have a seamless payment experience thanks to a single integration into an organization’s current infrastructure.
While many large firms, well-known eCommerce, insurance, and mobile companies, have adopted Ezetap and adopted its integrated solution, the company sees great opportunity in developing small and medium enterprises.
Ezetap – FAQs
What does Ezetap do?
Digital payment solutions are developed by Ezetap Mobile Solutions. Ezetap offers a variety of options like POS, mPOS, UPI, and SMS pay options, kiosks with payment modules, etc.
When was Ezetap founded?
Ezetap, a Bengaluru-based startup, was founded in 2011 by Abhijit Bose and Bhaktha Keshavachar.
How does Ezetap make money?
Ezetap is a SaaS company and earns money from subscription fees.
Which companies do Ezetap compete with?
The top competitors in Ezetap’s competitive set are Mswipe, Innoviti, Mosambee, Pine Labs, Payswiff, ePaisa, Bijlipay, MobiSwipe, Yoyo Wallet, Obopay, STC Pay, and PayRange.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byFinly.
Keeping track of expenses and payables is crucial for every business. Account Payable automation or AP automation software simplifies tasks like submitting invoices, managing approvals, and processing payments in a fast, error-free and transparent manner. This is the reason why many businesses are adopting Accounts payable automation these days. As reported by Adroit Market Research, the Account Payable Automation software market will be valued at US $ 4 Billion by 2025. One of the top companies providing this software in India is Finly. Finly also offers software for expense management, e-procurement, budgeting and offers various expense and budget-related insights that can help managers and accounting professionals take important business decisions.
In this article, we have covered all about Finly, its founders, the story behind the inception of the startup, its products, revenue, and plans.
In December 2019, Finly raised an undisclosed amount of funding from investors like Gemba Capital, AngelList India, Omphalos Ventures, Social Capital, and 91springboard.
We believe the team has built a fantastic SaaS product for the global market,” said Adith Podhar, Gemba Capital managing partner. “With Finly, a CFO can time his payments to better manage cash and capture early payment discounts, reduce invoice processing time and costs, and engage the accounts payable department in more strategic, higher-value activities.” Adith added.
About Finly and How it Works?
Finly is a financial management and governance software business. It provides a platform that enables businesses to automate, get visibility into, and manage their expenditure swiftly.
Finly created cloud-based expenditure management software to automate all corporate payments and transactions. The company’s software allows businesses to use cashless transactions by providing expenditure management, money distribution, digital payments, automated collection, and vendor payments.
Finly began with a simple notion: to help businesses better understand their spending and costs. Finly was created to help your organization establish better procedures, resulting in a system that is much more cost-effective and time-efficient. They believe that by replacing standard cost reporting systems with Finly, they would be able to make the entire process more hassle-free, resulting in higher employee satisfaction.
Finly offers a SaaS component that automates all financial operations within the company. To digitize all external financial transactions, the SaaS component connects with every type of payment instrument in India (UPI/ NEFT/ IMPS/ RTGS/ Prepaid Cards/ Credit Cards) enabling businesses to make seamless transactions.
The SaaS solution allows multiple stakeholders (spender/reviewer/finance team/vendors) to interact and cooperate while giving the finance team comprehensive insight. The solution maintains all internal corporate systems up to date with real-time financial activities.
Finly maintains all corporate business systems in sync and provides the most dynamic reporting on the industry by giving the company comprehensive visibility into its spending. Their objective is to give finance teams technology and analytics that allow them to have powerful insights into their spending, allowing them to make informed strategic decisions and removing any cost management roadblocks as your company grows.
Finly offers software for company cost management, digital cash distribution, vendor payments, and GST-compliant invoicing and payments to assist businesses to automate and simplify their spending.
The ‘Fin’ in Finly refers to the company’s financial management and governance software business.
Finly’ s Company Logo
Finly’s tagline says, “Control, Optimize & Strategically Reduce Business Spend By Digitising Accounts Payable Process with a Scalable AP Automation System”
Finly – Founder and History
Veekshith Rai and Vivek A G founded Finly in 2015.
Veekshith Rai – Co-founder and CEO of Finly
Veekshith Rai and Vivek A G had been friends since they were adolescents, and after graduating from an engineering school in Bengaluru in 2012, they got interested in digital money. Veekshith worked for Mindfree Labs, and Vivek for Accion, and they both worked in IT. However, after only 3 years, they realized they had arrived at a major revenue opportunity: expenditure management.
Finly, a company expenditure, and cost management solution, was born out of this need.
“Before settling on this concept, we had honed in on five challenges we were interested in solving,” Veekshith explains. “We put together pitch decks and contacted industry experts, investors, and advisers. We froze upon Finly and developed a prototype to obtain our first set of clients after feedback, numerous revisions, and a lot of deep ideation.”
During the initial stage, the founders narrowed down possible clients regarding the problem and other factors and shared the product concept with Chief financial officers. After receiving a partial payment, they began development on the system and rolled it out in stages.
Finly – Mission and Vision
Finly’s mission and vision statement say, “Finly Corporation is committed to providing our clients with a high-quality product and outstanding service. When clients use any of our goods or services to develop projects, we try to offer them security and peace of mind. We strive to be at the forefront of innovative technology and manufacturing processes.”
Finly – Business Model
Finly is focusing on the B2B market since the B2C market has been significantly disrupted by technology like UPI and applications such as PayTM and PhonePe, which have reduced reliance on cash.
Businesses, on the other hand, continue to rely on traditional payment processing systems. This is mainly because of two reasons: banks’ ongoing concentration on major operations and their failure to consumerize modern banking technology with software commodities that address current business demands.
Finly’s business model is built on a per-user, per-month cost that is determined by the module selected by the client. They also demand a transaction fee, which is determined by the form of transaction utilized by the company.
“Payments, an integral part of financial operations, remain disconnected from current processes. But payment technologies like UPI, currently open only to the B2C segment, will further drive adoption of digital payments when rolled out to the B2B segment,” says Vivek.
Finly’s yearly revenue is now projected to be $7.1 million.
Finly’s revenue per employee is expected to be $145,000.
The founders invested little more than Rs 1 crore in the firm, which is producing close to Rs 7 crore in revenue. The founders however have not confirmed the company’s revenue.
Finly – Funding and Investors
Finly raised an undisclosed amount of funding in December 2019.
Date
Round
Amount
Lead Investors
Dec 21, 2019
Seed Round
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Das42 Capital, Gemba Capital, Social Capital, 91springboard
Finly – Competitors
Finly is a SaaS company that competes with Expensify, SAP Concur, Zoho, Pleo, G2 Storefront, Happay, and Fyle.
Finly – Challenges Faced
According to Veekshith, the road ahead isn’t really a bed of roses.
Changing the habits of finance teams is one of the company’s difficulties. However, Finly combats this challenge with a robust customer success staff that follows up with its clients after the transaction.
The other challenge for the company is having strong business professionals with a mix of sales, technology, and financial skills.
Finly presently works with over 100 clients, and is working to increase the client base. The company will add more intelligent products to its suite in future.
V Ganapathy, CEO of Axilor Ventures, says: “This market is a big opportunity and this startup helps clients track all their financial expenses. We believe Finly has figured out the market reach and is scaling fast.”
Finly gives CFOs and finance teams comprehensive insight and control over payables. All while improving Finance Teams’ productivity by over 80% via the use of a sophisticated Finance Communication Framework to automate tedious and repetitive procedures and ease wireless communication within Finance Teams. With its intelligent software Finly is all set to change the way Finance teams across industries work.
Speaking about Finly’s vision, co-founder Vivek AG says, “We think that the future generation of finance teams will not spend time on manual labor for day-to-day activities such as processing vendor payments, reconciling invoices, tracking advances, and so on. Finly will assist finance teams in important duties such as analyzing and tracking vital indicators related to the company’s growth.”
Finly – FAQs
What does Finly do?
Finly is a financial management and governance software business. It provides a platform that enables businesses to automate, get visibility into, and manage their expenditure.
Who founded Finly?
Veekshith Rai and Vivek A G founded Finly in 2015.
How does Finly make money?
Their business model is built on a per-user, per-month cost that is determined by the module selected by the client. They also demand a transaction fee, which is determined by the form of transaction utilized by the company.
Which companies do Finly compete with?
Finly is a SaaS company that competes with Expensify, SAP Concur, Expensify, Zoho, Pleo, G2 Storefront, Happay, and Fyle.
It might be surprising to know that India is the world’s largest growing industry of fintech companies. Fintech the short form for financial technologies and FinTech companies are those companies that sell technologies and services related to financial transactions.
With the world shrinking to one’s fingertips and everything from education to business shifting to the online mode, there is absolutely no limit to the extent to which fintech companies are growing across the world and especially in India.
Most of the firms today are investing in or are planning to invest in financial technologies heavily. It is expected that by 2023 the global fintech market will be valued at over $305 billion.
The growth of fintech industries in India has been really humble. It started to gain momentum in the country only after the government initiated liberalisation of the banking industry and the incorporation of technology.
Slowly more funds were received by the banking sector for Financial innovation. The sector started to experience the ripple effects of the financial technology revolution in the US and UK in the 2000s.
This enabled the Indian banking industry to slowly begin by offering services that are consumer-centric. In the early 21st century FinoPay Tech and EKO India were two startups that were curated in the Banking Correspondent Model (BCM). And that was just the beginning only to witness the emergence of revolutionary fintech startups like Paytm, FreeCharge, Mobikwik et cetera from 2005 onwards.
Since then there have been no turning back for the industry with a plethora of companies mushrooming across different segments like lending, investments, personal finance management et cetera.
According to the reports by Boston consulting group (BCG) and FCCI India’s fintech companies are going to be valued thrice than what they are valued today within the next five years.
It is estimated that Indian fintech companies will reach a valuation of more than $160 billion by 2025.
The establishment of fintech companies and their growth have been phenomenal in the last five years than ever before. This dynamic industry has more than 2100 companies among which 67% of them were launched in the last five years alone. The biggest achievements of the industry do not stop there.
In the first seven months of 2020, fintech companies in India received total investments worth $1.47 billion which was 60% more than what it had been in 2019. Among the trends and new answers of the industry, online brokerage was gaining more popularity and thereby encouraged investors to buy more equities, mutual funds, ETFs et cetera.
All these lead to increased activity in the industry as a whole which resulted in huge investments in the industry like never before. It saw the emergence of three new unicorns companies and five new soonicons (Companies that have a valuation of $500 million or more) just from the beginning of January 2020.
There is a total of 21 unicorns in India and out of which one-third of the companies are fintech companies, which is not a surprise anymore. Among the unicorns Paytm is the highest valued one at $16 billion.
Multifaceted Support From the Government
Among the activities of the Indian finch industries, online payments have always been at the forefront. In 2018 digital payment crossed over 24 .13 billion in 2018. These transactions are valued at over $3.5 trillion.
One of the major reason for the tremendous growth of Fintech companies in India is because of various government policies that allow and facilitate people to get on to the digital platform for storing and transacting money.
The extensive use of Aadhaar has made verification easier and policies like PMJDY (Pradhan Mantri Jan Dhan Yojana) has pulled more people onto the digital platform than ever. The introduction of the Unified Payment Interface or UPI has also introduced a large amount of unbanked population in India into the digital financial services which have further boosted the growth of fintech companies.
Apart from that demonetisation has opened vast opportunities for fintech companies for better service provisions and thereby making customers comfortable within the technologies like AI, blockchain, IOT et cetera.
Reports say that the introduction of such industry 4.0 technologies into the industry gave a jump of nearly a hundred per cent from an earlier $1.8 billion valuation in 2018.
The Future of Fintech Industry in India
The fintech industry in India will continue to conquer greater heights as it has already started to partner with various banks. Using these collaborations and the nuances of consumer behaviour, Fintech companies are all set to further use technology to capitalise on better levels of trust among people.
In 2021 and from then on it is expected that hybrid banking will become more mainstream. The performance of fintech industries in India in the first seven months itself has proved this to be true. In an environment of hybrid banking, more financial institutions that operate offline will take on to virtual banking as well.
There are also various government initiatives that aim at establishing fintech hubs along with an allocation of Rs.15 billion to boost digital payments alone. All these will further strengthen and immunise the industry in the years to come. With the incorporation of newer technologies into the industry, it is expected that by 2025 there will be more than 30 billion connected devices ranging from thermostats to refrigerators to lightbulbs.
The breakthrough advent of cryptocurrency and blockchain technology is also expected to be a game-changer in the industry, especially regarding money transactions, consumer payments et cetera. However, it will be completely dependent on the stand of the Indian government.
FAQ
How many Fintech companies are there in India?
At present there are more than 2,000 fintech companies in India.
When did the FinTech sector rise in India?
In 2015, the Indian fintech sector saw the emergence of numerous fintech startups, incubators, and investments from public and private investors.
How big is the fintech market in India?
The Indian Fintech market is currently valued at $31 billion and is expected to grow to $84 billion by 2025, at a CAGR of 22%.
Money related organizations, monetary methodology, and budgetary administrations have radically advanced and improved in the last couple of decades. With the development of the Fintech industry in India, the whole business has experienced a huge change in the manner in which the money related methods are completed and budgetary establishments are performed.
The coordinated efforts between account and innovation has prompted an extreme change in banking, venture, exchanging, and digital money. And that’s just the tip of the iceberg. This development has prompted the ubiquity of the term “Fintech“, a short structure for the expression of Financial Technology. This post reveals insight into Fintech and why has it turned fierce in the modern world.
Fintech is significantly more than only a reference to money related innovation. It is frequently alluded to as the inventive innovation used to improve customary money related strategies and create powerful answers for budgetary administrations, those which are at standard with the most recent mechanical patterns. Banking programming and portable financial applications are great instances of improvement in monetary innovation.
Progressively, the huge fintech industry comprises of new companies and lofty monetary organizations endeavoring to improve the budgetary administrations given by money related foundations around the globe. The organizations have endeavored to utilize continually advancing innovation and create present-day techniques for taking care of money.
A large number of us may not understand, yet innovation has constantly assumed a critical job in the money related division. In any case, the most recent 65 years have played a huge role in the development of the fintech industry and the creation of a few fintech arrangements.
The 1950s saw the dispatch of credit cards and 10 years later, ATMs changed the manner in which cash was withdrawn from banks. The proliferation of the internet during the 1990s propelled the fintech business to a new level; electronic installment framework, web-based business models, web-based shopping, portable banking, and digitization of banks have brought about a significant revolution.
What Is Fintech Industry | History of Fintech
The world’s first ATM was propelled in 1967 by Barclays and the IPO in 1971, the principal online installment stage Paypal was established in 1998, the primary digital money Bitcoin was propelled in 2009, Google propelled Google Wallet in 2011 and, Fintech startups have been all over the place since then. Earth-shattering advancements of innovation are paving the way for fintech upheaval.
Money related innovation is said to be a problematic power that is relied upon to reshape the budgetary division, plans of action, and banking structures. New money related innovation simply keeps on progressing, has pulled in speculators from different nations, and has cleared the way for the development of markets and the fintech industry itself.
Retailer banking and installments, protection, financier administrations, business banking, venture, and riches are affected the most by the development of fintech.
A NASSCOM report says that the fintech programming and administration advertising in India was around $8 billion in 2016; it was expected to develop 1.7 times by the end of 2020. The report includes that the exchange an incentive for the Indian fintech division was around $33 billion in 2016 and was scheduled to reach $73 billion in 2021 at a five-year compound yearly development rate (CAGR) of 22%.
The Indian FinTech scene is divided as follows: 34% in installment handling, trailed by 32% in banking, and 12% in the exchanging, open and private markets. Visakhapatnam is being created as FinTech valley and the nearby administration of Andhra Pradesh opened Fintech Valley to advance the interests in this area.
Fintech Industry Growth
In 2018, more than 12,000 new businesses grew in the Fintech space over the world with a monstrous speculation of $19 billion. Fintech includes innovative organizations that are going up against each other and working in unison with existing money related foundations. These organizations likewise work together with colleges and research foundations, government affiliations, and industry bodies.
India now has a system in place that gives new companies a chance to exponentially develop into enormous organizations. Directly from digging into a scope of unexplored portions to outside business sectors, new Fintech businesses are conveying advancement that was deemed hard to accomplish.
Growth Of Fintech Services
The Indian Fintech programming business sector is expected to touch $2.4 billion by the end of 2020 from the current $1.2 billion in FY 2019.
Over the last couple of years, the Indian economy, which is altogether money-driven, has exploited the Fintech opportunity. With a scope of choices that includes digital wallets, loaning, and protection, the assortment of administrations gave an enormous impact to change the manner of money-related activities.
A number of encouraging reasons are propelling the comprehensive growth of Fintech in India. Some of them are:
Easy Payments
Installments have seen a noteworthy transformation in the recent years, particularly due to the disturbance of internet business, versatile trade, and online installments. Budgetary consideration is substantially more than just installments and exchanges and installments are seen as the door for monetary incorporation. Shoppers and vendors will keep on grasping digitized installments while UPI will continue to have its firm ground for both P2P and P2M exchanges.
Partnership Between FinTech’s And Corporates
The Fintech Times says 2020 will be the time of brilliant coordinated efforts between Fintech trend-setters and corporates, where corporate organizations would ideally put resources into Fintech instead of acquiring arrangements. Likewise, banks will be collaborating with Fintech to sort out inconsistencies and offer benefits via administration, smooth client experience, and a progression in cutting-edge highlights to ease tasks.
There’s a rising change being experienced by Investment Advisory organizations with the improvement of electronic riches counsels, also known as “Robo-guides.” And by “Robo,” we mean computerized board-stages as real robots.
These Robo-guides can guide executives through calculations and help clients take money related decisions. The perfect outcome is the ability to yield specially designed, noteworthy counsel to financial specialists without the contribution of human feelings, and that too at a lower cost.
Facility Of Cloud Banking
Usage of distributed computing will lessen costs by an incredible degree on the grounds that no extra speculations are required for overseeing assets and equipment. Cloud adjusts to the changing requests and gives versatility to serve the transforming needs of clients. Cloud assets additionally scale upon necessity and permit simpler incorporations with innovations.
How Fintech Industry Is Shaping Banking Sector
Secure Digital Payments
Security is of utmost importance since money related exchanges are exposed to dangers and assaults. An EY report says innovation like Blockchain will be extremely popular, crediting to its advantages like straightforwardness, changelessness, discernibility, and audibility. Blockchain will give a state of security with regards to the trading of cash and touchy data, enabling clients to draw off its straightforwardness and bring down operational expenses.
NLP Based Chatbots
There is now a rush of problematic innovation in organizations. It is encouraging to see clients continuously attempting to discover better approaches to consistently communicate with organizations.
Fintech will be a sensation by utilizing NLP based chatbots and enhancing Conversational User Interface (CUI) to change portable banking. These chatbots will have the option to react to client issues and give practical arrangements accordingly.
Convenient Personalization
Fintech is improving client experience by giving customized plans suited to the client’s needs. The inevitable destiny of Fintech will see altered outlines that can imagine critical events in a client’s life. Actualizing Artificial Intelligence (AI) and Big Data for personalization will bring about improved availability and capability; the results can then be used in the progression of present-day administration models.
Fintech Industry – Future in India
Fintech Growth Curve
Fintech administration firms are right now re-thinking the manner in which organizations and customers deal regularly.
In India, the scale has been less steep when compared to the international developments. The interest in India’s Fintech industry, which caught pace somewhere between 2013 and 2014, continues to grow.
Furthermore, India has a huge undiscovered market for budgetary administration through innovation in new businesses. 40% of the populace is not associated with banks anymore, and 87% of the installments are now being paid with real money.
With cell phone entrance expected to increment to 85-90% in 2020 from 65-75% at present and web infiltration consistently climbing, the development potential for Fintech in India can’t be exaggerated.
These holes in access to organizations and administrations offer a significant opportunity for Fintech arrangements to flourish and grow.
Fintech Industry – Leading Fintech Companies in India
There are more than 2000 Fintechcompanies in India. Some of the leading fintech companies in India are:
Paytm
Paytm – Fintech Company
A leading Fintech organization- Paytm is a platform for portable installments and money related administration. It gives an application based stage to pay installments, make travel appointments, inn and ticket booking, booking chamber, purchase of gold, gifts, and so on.
Paytm offers banking administrations, credit cards, advances, speculation stage for protection, shared assets, etc. Paytm Mall is an additional offering by Paytm for internet shopping of utilities, garments, food supplies, adornments, hardware, toys, and a lot more. The application is available for both Android and IOS.
Leading marketplace of insurance products- Policybazaar is an online protection aggregator for items from different safety net providers (dependent on the value, quality, and key advantages). Right now, the site offers data to enable clients settle on the best choices alongside arrangement driven client care. The data highlights content in different structures, for example, the top five highlights of an item, hits, and change rates.
BillDesk
Billdesk
BillDesk powers electronic installments and accumulations administrations for banks, organizations, and different establishments. It also oversees VISA installment administration. Billdesk empowers installment of service charges, Mastercard, and ISP charges for huge banks like Citibank, HDFC Bank, State Bank of India, and for organizations such as Bharti Telecom.
One of the leading fintech- Pine Labs gives POS programming services for disconnected retailers and brands. The organization’s POS arrangements are a cloud-based system that coordinates with a nonexclusive POS terminal and enables retailers to acknowledge payments and Visas, e-wallets, QR code, and UPI based instalments.
The organization offers installment passage, API arrangements, portable installment arrangements, dependability gift voucher projects, and others. It additionally offers esteem-oriented arrangements like EMIs, limits, pay by focuses, e-Wallets, directed advancements, dynamic money change. Pine Labs’ versatile application is available for both Android and iOS.
MobiKwik
Mobikwik
MobiKwik is an advanced wallet administration. It offers a halfway installment for ticket reservations and bookings. MobiKwik also gives momentary individual credits to its wallet clients.
BankBazaar
Bankbazaar
BankBazaar is an online budgetary dissemination and co-relation platform. BankBazaar empowers clients to purchase individual advance, home advance, vehicle advance, and other items, charge and Visas, disaster protection, medical coverage, accident protection, home protection, travel protection items, shared assets, fixed stores, and bank accounts. Clients need to give their essential subtleties to apply for an item on the web and can then track its status.
Bharat Bill Payment System is a coordinated bill installment framework that offers interoperable and open bill installment administration to clients through enlisted operators and various installment modes. BBPS is an incorporated installment platform that makes a solitary, bank-free pitstop for all utility installments, and wallet administration for clients by taking care of their transactions through portable wallets.
Unified Payments Interface (UPI)
Unified Payment Interface
Unified Payments Interface is a framework that powers different ledgers into a versatile application, combining a few financial highlights, consistent reserve directing, and trader installments into one hood. It likewise takes into account the Peer-to-Peer system which can be planned and paid according to one’s comfort and convenience.
Fintech is term for Financial technology. All the companies that involves finance services using technology in their business come under Fintech Industry.
What are leading fintech companies in India?
Paytm
Razorpay
Upstox
Cred
ETMoney
Instamojo
PolicyBazaar
MobiKwik
Pine Labs
UPI
What is the valuation of fintech market in India?
The valuation of Fintech market in India is currently around $31 Billion. It is expected to grow to $84 Bn by 2025.
Kavita Thakur
