As of August 2023, over 3,085 Fintech Startups were working in India, a country with a fast-expanding fintech economy. India directly affects the demand for digital financial services since it has the second-largest population of internet users. By 2025, it is anticipated that the fintech industry in India will grow to $150 billion, with a 50% rise in digital payments and a 6% increase in the value of fintech transactions. India’s leading fintech firms are revolutionising the financial sector, and the nation has seen the largest advancements in payment technology during the past ten years.
Paytm
The largest Fintech Startup in India, Paytm, provides a range of services, including microloans, purchase now, pay later financing, bill payments, money transfers, tickets, investments, and savings accounts. India is one of the FinTech sectors with the quickest rate of growth in the world, employing over 20,000 people. By 2025, the market is projected to reach $150 billion. The value of Fintech transactions is predicted to rise from US$ 66 billion in 2019 to US$ 138 billion in 2023, with the Indian FinTech sector projected to develop at a CAGR of 20%.
PhonePe
With its UPI-based software, PhonePe, a fintech startup located in Bangalore that is owned by Walmart, is transforming online transactions in India. The website provides services including bill payments, cell phone recharges, money transfers, and gold and mutual fund investments. Since being purchased by Flipkart in 2016, PhonePe has grown to accommodate more than 50 million registered consumers and over 3.6 crore businesses.
Acko
Through the adoption of customer-centricity and the development of new products, Acko, Fintech Startup in India, has completely transformed the insurance market. With over 50 million unique clients since its founding in 2016, it has emerged as the insurance provider with the quickest rate of growth. Car, bike, mobile, term life, COVID-19 health insurance, shop, office, professional indemnity, cyber insurance, and group health insurance are just a few of the insurance products and services that Acko provides.
Groww
Groww is an Indian fintech platform that seeks to provide investors with more equitable access to the financial markets. Groww is a user-friendly platform that focuses on education and was founded in 2016. Investment choices available on the site include mutual funds, equities, IPOs, US stocks, ETFs, and futures and options. Groww offers free, paperless Demat and trading account opening, an objective assessment of financial goods, and tools for technical analysis so you may make well-informed decisions.
CRED
The fintech startup CRED, with headquarters in Bangalore, provides a members-only app that gives customers incentives from companies like Puma, Samsung, and Starbucks in exchange for making on-time credit card payments. The software offers short-term credit lines and uses artificial intelligence to monitor spending trends and alert users of upcoming deadlines. By 2021, CRED hopes to have over 5.9 million subscribers, and it now manages 20% of credit card payments in India. Notwithstanding the complaints, CRED has garnered significant investment, and by mid-2022, its valuation had reached $6.4 billion.
Lendingkart
2014 saw the founding of Lendingkart, a digital financing platform for micro, small, and medium-sized businesses (MSME) by former ISRO scientist Mukul Sachan and banker Harshvardhan Lunia. The firm determines risk, finds fraud, evaluates consumer creditworthiness, and disburses loans in less than 72 hours using machine learning algorithms and big data analytics technologies. Lendingkart’s in-house algorithms evaluate over 7,000 data gathered from various sources to determine an applicant’s creditworthiness. The business was among the first to use machine learning and artificial intelligence to automate underwriting, enabling people with poor credit ratings to be approved for loans.
Zerodha
The Indian fintech startup Zerodha wants to lower trading restrictions for investors and merchants. It facilitates millions of daily orders and makes a considerable contribution to the volumes of Indian retail trade, with a customer base that exceeds one crore. Equity investment, futures, options, direct mutual funds, IPO investing, bonds, government securities, commodities, and currency derivatives are just a few of the services that Zerodha provides. Kite, Console, Kite Connect, Varsity, Zerodha Coin, Zerodha Partner, Margin Trading, and Zerodha Tax are some of their trading platforms.
Upstox
Founded in 2009 by Ravi Kumar, Kavitha Subramanian, and Shrini Viswanath, Upstox is an Indian fintech business. It provides a variety of trading products, such as mutual funds, IPOs, equities trading, options, and futures. Advanced charting, research and analysis, a mobile and web-based platform, and paperless account opening are all included in the platform. Upstox is a popular option for investors.
Instamojo
The fintech startup Instamojo, situated in Bangalore, provides over 2 million independent Indian e-commerce companies with effective startup, management, and growth solutions. With the help of Instamojo’s full-stack transactional platform, small companies may develop websites, conduct consumer data analysis, establish online payment processing, and much more. Instamojo, which has over 500,000 merchants on its platform, is the first startup to offer payment connection services to companies in India, enabling them to collect payments more flexibly.
MoneyTap
MoneyTap is an Indian Fintech Startup that provides quick personal loans up to Rs 5 lakhs. It was launched in October 2015 by Bala Parthasarathy, Kunal Verma, and Anuj Kacker. With 151 workers, the firm has raised $82.4 million, including $70.05 million three years ago. It has also worked with banks to offer loans that are flexible and expedient. MoneyTap is the first firm in India to provide instant lifelong credit up to Rs. 5 lakhs, with a paperless and collateral-free loan application procedure. The startup wants to make credit acquisition simpler for those without credit ratings.
Razorpay
An Indian fintech startup called Razorpay offers companies a rapid, easy, and safe way to receive and process digital payments. It provides a range of online payment options, including net banking, credit and debit cards, UPI, and popular Indian wallets. Introduced in 2017, Razorpay Route, Smart Collect, Subscriptions, and Invoices manage cash flows, money distribution, bank transfers, automatic NEFT, and scheduled payment collection. Razorpay, which has received over a million downloads and 968 user evaluations, is getting ready to introduce its own NeoBank service.
Pine Labs
Pine Labs, an Indian Fintech Startup, has secured $911.2 million ($600 million a year ago) to create a platform that would increase accessibility, speed up transactions, and automate merchants in local markets. Since its founding in 1998, the firm has grown to have over 350 thousand PoS terminals and over 100,000 merchants in India and other Asian nations. One of the first startups in India, Pine Labs invented NFC- and card-based payment systems. The firm now employs over 600 people and is continually seeking more employees.
ZestMoney
ZestMoney is a fintech startup that combines digital banking, artificial intelligence, and mobile technologies to streamline the loan application process. The firm uses its AI-powered machine learning decision engine to provide a risk assessment for every borrower. People with a bad credit history can submit more data, which the Decision Engine then assesses. One of the first businesses in India to offer AI-assisted underwriting, ZestMoney enables customers to get credit even in the absence of traditional banks. In the past 10 months, the firm has raised $117.6 million ($50 million).
PolicyBazaar
The top insurance product marketplace and top Fintech Startup in India, PolicyBazaar, has secured $616.6 million ($75 million) in investment. It was established in 2008 and has since democratised the financial product market by allowing individuals and small companies to evaluate financial goods and policies. PolicyBazaar’s dedication to extending financial inclusion has resulted in its quick expansion and expanded employment efforts. The organisation, which has hired more than 1500 people in the past and is now looking for a variety of jobs, provides a variety of employment options throughout its corporate divisions.
Conclusion
It is anticipated that by 2025, the Fintech Startups in India will grow to $150 billion, propelled by a 50% surge in digital payments and a 6% growth in transaction value. With their cutting-edge payment technologies, top fintech companies like Paytm, PhonePe, Acko, Groww, CRED, and Lendingkart are transforming the financial industry. Paytm provides microloans, bill payments, money transfers, investments, savings accounts, and tickets; PhonePe uses UPI-based technologies to revolutionise online transactions. Acko boasts more than 50 million distinct customers, and Groww strives to provide investors more equal access to the financial markets.
