“Fintech” is the revolutionary integration of financial services with technology. The wealth that used to exist in the form of coins and jewels back in time does not even have to be physical today. Henceforth, this new form of wealth demanded modifications in financial services. The global economy has developed remarkably in the last few years. India, one of the most populous countries, has performed exceptionally well in this sector. It has one of the world’s largest and most significant markets for fintech. Over 2000 fintech startups are currently operating with huge success rates in our country.
Importance of Fintech Start-ups in India
Digitalization is one of the widespread revolutions that has affected every industry, including banking. Massive technological and structural changes are quickly emerging as the new norm. The emergence of digital-only banks with fintech start-ups in India has increased efficiency and convenience.
Digital-only banks are now set up to allow account opening and money transfers at any time and from any location in India, lowering expenses and broadening accessibility. This has been made possible by fintech start-ups in India.
Fintech start-ups in India have also changed the nature of financial transactions. The majority of payments are now made via online internet banking or other payment apps, eliminating the need for you to visit banks for such needs.
Finally, fintech services provided by fintech start-ups in India are flexible, cheap, and achieved through high-end technology. Fintech is efficient with lower pricing.
Top 10 Fintech Start-ups in India
Let’s learn in depth about the leading fintech startups in India.
Paytm was the first step toward the digitalization of financial services in India. Founded in 2010 by Vijay Shekhar Sharma, it was the first fintech startup in India to earn the title of “unicorn” in 2015. Paytm allows customers to transfer money at no additional cost with just a click. The interface is advanced yet easy to use. Customers are provided with various facilities for making bill payments. From mobile recharge to investing in the stock market, it offers everything. “Paytm Karo” is an attractive tagline that gained popularity in the initial years.
Razorpay was founded by Shashank Kumar and Harshil Mathur in 2014. Incubated in the IT hub of India, Bangalore, Razorpay provides its customers with the fulfillment of various payment needs. It focuses primarily on the needs of businesses and startups. You can have access to your debit cards, credit cards, UPIs, and popular mobile wallets all in a single place.
3. Pine Labs
Valued at over 5 billion US dollars, Pine Labs is one of the most famous unicorn companies in India. It was founded in 1998. This cloud-based solution provides customers with payment facilities like a unified payment interface, credit and debit card access, and much more. Pine Labs has played a significant role in the development of the global economy.
This multinational fintech company was founded in 2008 by Alok Bansal, Avneesh Nirjar, and Yashish Dahiya. Headquartered in Gurgaon, PolicyBazaar is a company that provides people with various types of insurance. You can opt for anything from health insurance to insurance for materialistic things. It offers excellent policies in terms of long-term investments to secure your future for the smallest possible monthly amount.
Lendingkart, founded in 2014, is a non-bank financial company registered with the RBI. It primarily aims to provide small and medium-sized enterprises with funds to help them grow. It offers great analytical tools to assist businesses.
MoneyTap provides customers with the facilities of instant personal loans. It offers loans for up to Rs 5 lakh with flexible terms and reasonable interest rates. It is the first app-based company that provides loans with just a “tap.” Founded in 2015 by Bala Parthasarathy, MoneyTap is one of the leading companies that provide people with personal credit lines in India.
Instamojo aims to provide MSMEs, independent businesses, and startups with satisfactory payment solutions. Founded in 2012 in Bangalore, it has served over 800,000 businesses in different states of the country. The fact that it has over 10 million registered users on its platform explains its rapid growth.
ZestMoney is a fintech company in India that provides customers with digital EMIs. You no longer have to worry about your credit card or credit score while shopping for your favorite items on EMI. This digital lender works under the guidelines of the RBI. This tech-based firm in Bangalore has partnerships with some of the leading companies, like Amazon and Flipkart.
Cred is a leading fintech startup in India, founded in 2018 by Kunal Shah. It is a members-only platform that provides rewards for paying credit card bills on time. It offers cred coins to people for clearing bills, which can be further used for unveiling exclusive offers and rewards from premium brands.
It was founded by Bhavin Turakhiya and Ramki Gaddipati in 2015. It is a cloud-based banking technology company that has given many fintech products to the world. Valued at over 300 million dollars, Zeta provides BNPL, core banking facilities, easy issue of credit and debit cards, and much more.
FAQs on Fintech Startups in India
The frequently asked questions on Fintech Startups in India are given below:
Q1: What do you understand by a “Fintech” startup?
A1: “Fintech” is an abbreviated form of financial technology. A fintech startup aims to develop a product or platform that can either solve or ease existing financial problems by means of technology. It is a great step for the ease and betterment of people.
Q2: What are the obstacles in the way of fintech startups?
A2: Fintech startups need to deal with multiple challenges in the initial years of the startup. It includes demand, compliance, trust, security, lack of awareness among people, and much more.
Q3: Why are fintech startups important?
A3: One cannot rely on traditional or manual finance services in such an era of advancement. The advent of AI has significantly affected each and every sector of the world, including finance. Therefore, developing and modifying the platforms according to the current requirements is necessary. Hence, fintech startups are essential for any country to cope with the competition globally.
Q4: How much capital do you need to establish a fintech startup?
A4: You can start according to the availability of capital. No amount is lesser or higher when it comes to innovation. Having an idea is easier than working hard to achieve it. Everything will go right if you are passionate enough to achieve your goals.
Q5: What are some leading fintech companies in India?
A5: Some of the leading fintech companies in India are Paytm, Razorpay, Pine Labs, Policy Bazaar, Cred, Zeta, and much more.
These tech-based companies provide commendable financial services. All of these services are available at the touch of a button on your smartphone. These companies have worked remarkably well to provide the nation with a cashless economy. Apart from these, many other startups have contributed a lot to making the fintech market in India the second largest in the world.