Thursday, May 19, 2022

“Fintechs that do not collaborate with the ecosystem will get wiped out” & more.

1. The Money Club raises pre-series A funds led by SOSV and Venture Catalysts

The Money Club was founded by IIT Kharagpur friends, and it leverages AI to effectively underwrite high frequency, micro pooling of funds by studying user behaviour. SOSV, a Global VC Fund and Venture Catalysts has announced its latest investment in the company.

With the newly raised capital, The Money Club aims to disrupt India’s largely unorganized $50 billion chit fund sector and bring greater security and transparency. The Money Club platform has acquired over 200,000 users and has grown 500% in the last 1 year.

Read more about it here.

2. India’s FinTech Adoption Rate At 87% As Against Global Average Of 64%: FM, Nirmala Sitharaman

Speaking at The Global FinTech Fest, Ms Sitharaman emphasized that digital payments have seen tremendous growth from ₹ 2 lakh crore worth of digital transactions in 2019 to ₹ 4 lakh crore in 2020.

“India has democratized financial services and accelerated the deployment of digital public good infrastructure that promotes financial inclusion and progress towards sustainable development goals,” Ms Sitharaman said.

Read more about it here.

3. Fintech is proving its mettle on ground as payment systems mature, says Nirmala Sitharaman

Speaking at the Global Fintech Fest 2021, the FM said that it is a fintech that is fueling this adoption by providing the technological backbone and ensuring that people are equipped with the right tech.

“Therefore today, you see that fintech is proving itself on the ground in India. As a result, technology is in the hands of the people of India for them to execute it,” the FM said. She added, “Regardless of Covid-19 being a trigger, India Stack has evolved in pleasantly unexpected ways because of the developments between 2015 and today.”

Read more about it here.

4. Amazon-backed fintech ‘Capital Float’ scores $50Mn in latest fundraise

As the pandemic led to a widespread decrease of cash among the masses and depleted disposable incomes, people began exploring suitable alternatives. One such alternative is the Buy Now Pay Later (BNPL) segment, which has shot into prominence, as India’s fintech sector continues to grow at a ginormous pace. Amazon-backed Capital Float, one of the most popular BNPL startups in India, is getting in on the ride and has announced a fresh $50 million fundraise via some marquee investors.

The round was led by private equity firm Lightrock India and included participation from existing investors like Sequoia Capital India, among others.

Read more about it here.

5. India’s Finance Minister was the Chief Guest at World’s Largest FinTech Fest

India’s Finance Minister Smt Nirmala Sitharaman was the first Chief Guest at the World’s Largest Virtual FinTech Fest , Global FinTech Fest (GFF). It is scheduled for 28-30 September. Shri Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, Government of India, will address the Valedictory Session on 30th September.

The event is organised by National Payments Corporation of India (NPCI) and Fintech Convergence Council (FCC) of Internet and Mobile Association of India (IAMAI). The World Bank and United Nations Capital Development Fund (UNCDF) are the institutional partners of the summit. It is expected to see 20,000 delegates from over 3,500 unique companies and over 115 countries. About 300 global speakers from 35 nations will share their perspectives on various facets of fintech.

Read more about it here.

6. With WhatsApp, even smallest enterprise can provide world-class digital experience: Abhijit Bose

With large technology enterprises continuing to enhance their focus on Indian MSMEs and small businesses to drive growth, Facebook-owned messaging app WhatsApp has digital solutions catering to small businesses. For instance, the company’s API Platform, which it launched in 2018 for businesses, allows companies including SMBs across multiple sectors such as retail and food and beverages, fintech, healthcare, e-commerce, restaurants, hotels, delivery/logistics, and more to connect with customers in a chat interface.

At its Global Fintech Festival event on Tuesday, the company’s India head Abhijit Bose said that with WhatsApp, even the smallest enterprise can custom-digitize their processes and provide a smooth, world-class digital experience to their clientele and thrive in this India’s Fintech moment.

Read more about it here.

7. UPI Transactions to Grow at 22 Percent CAGR, Reach 6.2 Lakh Crore by 2025: RBIH

UPI transactions in India, which is the leading instrument for the consumer FinTech sector in the country, stands at a juncture to grow at 22 percent cumulative growth rate to hit a total transaction volume of Rs 6.2 lakh crore (USD 84 billion) by 2025, said Rajesh Bansal, chief executive of the Reserve Bank Innovation Hub (RBIH).

Mr Bansal spoke at a keynote session of the Global FinTech Festival that opened earlier today, underlined key areas of growth that the Indian digital payments and FinTech sector can cash in to grow in the immediate future, and committed to the RBIH’s plans to be an enabler in this sector for nascent startups.

 Read more about it here.

8. Fintechs that do not collaborate with ecosystem will get wiped out: Razorpay co-founder

Since the Bengaluru-based company’s launch in 2014, co-founders Harshil Mathur and Shashank Kumar have diversified the business beyond just being a payment gateway. The startup now has a neo-banking platform RazorpayX, payroll and tax payment solutions, and also an SME lending arm Razorpay Capital.

In April, digital payments startup Razorpay’s valuation tripled to $3 billion after a Series E fundraise announcement of $160 million. This came barely six months after the company became a Unicorn. i.e. a startup with a valuation of $1 billion or above. Razorpay’s Mathur and Kumar spoke on a panel moderated by Ishaan Mittal, Managing Director of Sequoia India at the Global Fintech Fest 2021.

Read more about it here.

9. Regulatory perimeter should be widened with evolving functions of fintechs: RBI Dy Governor T Rabi Shankar

Reserve Bank of India Deputy Governor T Rabi Shankar in the Global FinTech Festival, said fintechs had started performing different functions of financial services which were earlier performed by traditional financial institutions. The wide array of functions fintechs perform necessitates the widening of the regulatory perimeter, and the regulators have to adjust to this major change, he observed.

The Deputy Governor also highlighted the rise of digital fraud. While fintech holds promise to prevent digital frauds, it has become apparent that India is most likely to be a subject to ransomware attacks, he said.

Read more about it here.

10. NPCI launches ‘RuPay On-the-Go’ with YES BANK in partnership with Neokred and Seshaasai

National Payments Corporation of India (NPCI) has partnered with YES BANK to launch first-of-its-kind RuPay On-the-Go contactless payments solutions, in association with fintech infrastructure partner Neokred and manufacturing partner-Seshaasai.

It was launched at the Global Fintech Festival 2021, RuPay On-the-Go will allow customers to make small and large value transactions from the accessories they wear every day. This innovative wearable payment solution would redefine the contactless payments space by eliminating the need to carry a physical card and enabling instantaneous payments with a simple “Tap, pay, go” mechanism.

Read more about it here.

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