Thursday, May 19, 2022

CredRight raises $2.7 mn, How A/c aggregators can end dodgy loan apps menace & more

1. FinTech start-up CredRight raises $2.7 mn funding from 9Unicorns

Hyderabad-based FinTech startup CredRight has raised Rs. 19.85 crore funding from 9 Unicorns, Spearhead Capital and Venture Catalyst, along with existing investors YourNest, Accion Venture Labs, and prominent angels.

CredRight is a data-driven lending platform that facilitates credit to small businesses and MSMEs via NBFCs and Banks. It has built a tech-based distribution model to reach out to India’s 10 mn Registered chit subscribers that are largely located in tier-II and tier-III cities.

Read more about it here.

2. How this Fintech Startup’s ‘Full-stack’ Ambition Became a Reality?

Indian Fintech companies have raised $13.4 billion in the first quarter of 2021. These companies are radicalising the Tier 2 and 3 cities as well. Small town Indian families primarily bank with government or regional cooperative banks that only provide a basic bank account and don’t get other financial products such as unsecured loans, credit cards, insurances, or investments.

Whilst the Indian fintech ecosystem on the other hand is geared towards building do-it-yourself (DIY) apps that help customers choose the right financial products for themselves. However, this approach doesn’t work for small-town Indian families as a high-touch model is required. Fintech Startup WeRize is addressing this underserved demographic and equipping them with the financial tools that they require.

Read more about it here.

3. Fintech founders say: New-age investors want a lot more control

High demand for interest-free credit with the potential to reach out to first-time credit-seekers, a young population and digital onboarding and access is what is making fintech players the preferred financial services providers in India. This statement was made by the fintech founders.

On a panel at the India Internet Day 2021 organised by TiE Delhi-NCR, Deepak Abbot, Co-Founder of indiagold, Kush Taneja, Founder of FamPay, Lizzie Chapman, Co-Founder & CEO of ZestMoney and Vasanth Kamath, Founder & CEO of Small case spoke to comedian and YouTuber Tanmay Bhat on why their companies click with the masses.

Read more about it here.

4. India sees second-best year for fintech funding despite Covid-19: KPMG

Despite pandemic challenges, India saw the second-best year for fintech funding and attracted 2.7 billion dollars in investment last year, the second-highest amount ever next to 2019’s peak of 3.5 billion dollars, professional services firm KPMG said on Thursday.

The hottest area was Payments followed by insurtech and wealthtech, it said in a report titled ‘Pulse of Fintech H2’20. It added how fintech investors adjusted their strategies in the second half of 2020, moving away from both early-stage companies and lending-based businesses and towards later-stage companies. Investors also focused more on profitability.

Read more about it here.

5. How A/c aggregators can end dodgy loan apps menace?

Fintech Lendingkart became the first to get a AA license. Account aggregators allow account holders to provide digital lenders access to their savings account history.

This is one of the core principles behind ‘open banking’, allowing customers to access services from anywhere and stop being tied to their bank. With AA in the scene, digital lending apps that got a bad name because of their dependency on personal information can now lend efficiently as they will have access to bank data. This will certainly not go well with shady digital lenders.

Read more about it here.

Interested to know more about open banking, you can check out our course here.

6. Virat Kohli-backed Indian fintech startup reaches $3.5 billion value

Indian fintech startup Digit raised its valuation to $3.5 billion in a fresh funding round, gaining capital for its effort to win insurance customers via mobile technology.

The company raised $200 million from Sequoia Capital India, existing investor Faering Capital Pvt and others, according to a statement on Friday. It’s one of the largest funding rounds in India’s fast-expanding insurance market also targeted by rival startups including Inc.-backed Acko.

Read more about it here.

7. Investments, impact and fintech

The success story of Indian Fintech firms is nothing new. They face some interrelated challenges like inefficient market conditions, availability of capital for growth and reaching the poor. Any fintech requires good technology infrastructure and supportive regulations to foster growth, India is such an example.

 Fintech organizations look for relevant capital solutions, depending upon their stage of growth. New fintech companies look for donations or investment to prove the concept in specific demography, Growth stage fintech requires money for expansion and replication, this may come in the form of debt or equity and in some cases as donations (excepting high social returns).

Read everything about how investments impact Fintech firms here.

8. How has the Indian fintech industry grown rapidly during the pandemic?

Hyderabad based Vivifi is an RBI-certified non-banking finance company (NBFC) that enables easier and more direct access to credit for the underserved communities in India. It offers sachet sized loans to customers who have the ability and intent to repay. Based on the loan repayments of these customers, the company then increases their credit limit to help them improve their credit score and eventually get access to larger loans.

It was founded in 2017 by Anil Pinapala (founder & CEO) and Srinath Kompella (co-founder & COO), the Hyderabad-based startup has disbursed over Rs 200 crore credit to date.

Read the full interview of the executive here.

9. 4Fin has raised $1.1 million in pre-seed round

4Fin, a startup that has not yet launched effectively, not started up, has raised $1.1 million in the pre-seed round through Curesense Therapeutics, investors behind biotech company Mylab. Yes, 4Fin founders Ajit Sinha and Amit Tewary, both senior former bankers, are more than aware of what it takes to be “profitable” in the lending space. 4Fin is based in Pune.

According to executives of the company, the first and foremost is “omnichannel access for any kind of support”. They also add “It’s never a fixed model like conventional banking. Since we have to do the loans fast, we rely a lot on data. We will be very agile and robust.”

Read more about it here.

10. 50% corporates in India have a digital transformation strategy in place: Report

The Covid-19 pandemic and the subsequent lockdown has accelerated the digital journey for corporates and small & medium enterprises in India, according to the third edition of the DBS Digital Readiness survey. However, room for further improvement remains.

According to the survey, one in two corporations in India has a digital transformation strategy in place. Forty-eight per cent of large corporations (companies with an annual turnover of over $1 billion equivalent) and middle-market companies (annual turnover of between $200 million and $1 billion equivalent) in India have a digital transformation strategy in place.

Read more about it here.

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To get our Fintech courses and Certificate at USD10, please use code GFA10 at check out/payment page, visit our website for Fintech courses – Global FinTech Academy

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