With a large unbanked population and rising smartphone usage, FinTech startups in India are poised to carve a large mindshare and marketshare in the country. The government is doing its part to move the country to a cashless society – the Reserve Bank of India issued payments bank licences to 11 entities in August 2015, and in 2016, NPCI launched the Unified Payments Interface, which will enable users to transfer bank funds using just a unique ID and a PIN.
76 FinTech companies were funded since July 2015 in 83 rounds, the total funding in FinTech startups during the period was $862.5M. VC funding activity has been centred around a variety of business models, including mobile wallets, loan comparison, insurance aggregators, online lending, payment devices, payment gateway solutions, and personal finance management. Of the top 50 funded FinTech startups, 23 are headquartered in Mumbai, the financial capital of the country. Alibaba-funded Paytm, the country’s leading mobile wallet in terms of users has ten times the funding of its competitor – MobiKwik.
Most Active FinTech Investors in Top 50 List
Based on the number of investments made, the most active FinTech investors in the top 50 list are Sequoia Capital, Accel Partners, SAIF Partners and Tiger Global and IDG.
Sequoia Capital – 9 (BankBazaar, ApnaPaisa, Fintellix, Cleartax, Chillr, MobiKwik, Prizm Payment Services, Citrus Pay)Accel Partners – 6 (Coverfox, QwikCilver, MoneyView, Chargebee, JusPay, Scripbox)SAIF Partners – 4 (Paytm, Coverfox, Tracxn, Capital Float)Tiger Global – 4 (Chargebee, Coverfox, Razorpay, MoneyView)IDG – 4 (Fintellix, CreditMantri, Agile Financial Technologies, Heckyl)
Top Business Models: Mobile Payments, Investment Tech, Alternative Lending
Mobile Payments – 10 companies in the top 50 have mobile-focused business models – consisting of semi-closed wallets (Paytm, MobiKwik, MoneyOnMobile, PayMate, The Mobile Wallet) that can be used for bill payments and recharge. Other mobile business models include money transfer apps (Chillr), point of sale solutions (Ezetap, Mswipe, Paynear), payment gateway for e-commerce merchants (Juspay).
Investment Tech – Out of the nine investment tech companies, four are robo advisors for public market investing (FundsIndia, MyUniverse, Scripbox, 5nance). Heckyl and Cogencis provide analytics and market data respectively on public markets. Mumbai-based RKSV.in is an online retail brokerage firm, while BankerBay is a web-based deal origination tool for PE firms and investment banks. Tracxn finds a place in the top 50 too.
Alternative Lending – Eight alternative lending startups figure in the top 50 list – business models encompass direct lenders (Capital Float, Lendingkart) small business lending (NeoGrowth), consumer loans for e-commerce (OnEMI) loan comparison (BankBazaar, APNAPAISA, rubique) and P2P moneylending (faircent).
Banking Tech – The seven banking tech startups on the list include a loan management platform (Cloud Lending), a fraud and risk management solution (CustomerXPs) and fraud and risk analytics (Fintellix), loyalty relationship management (Loylty Rewardz), Regulatory compliance (ComplyGlobal), and banking correspondence (FINO PayTech, EKO).
Payments – Payments focused companies in the top 50 include prepaid cash card provider ItzCash, digital and electronic payment solutions (Transerv, Prizm Payment, and Suvidhaa) and payment gateways (Citrus Pay and Razorpay), and QwikCilver, a multi-brand gift card store.
Insurance Tech – Five insurance tech startups in the top 50 consist of aggregators like Policybazaar, Coverfox, Easypolicy, and software solutions providers (Agile Financial Technologies, HealthHiway)
Consumer/Enterprise Finance – Consumer finance focused companies include CreditMantri, a credit score and analysis portal, MoneyView, a personal finance management app, and Cleartax, an income tax filing portal. Chargebee is an enterprise focused subscription billing service for SaaS companies.
| Ranking | Company Name | Domain | About | City | Total Funding |
| 1 | Paytm | paytm.com | Mobile wallet, e-commerce platform and payment bank | Noida | $890M |
| 2 | MobiKwik | mobikwik.com | Mobile wallet, recharge, bill payments | Gurgaon | $86.8M |
| 3 | BankBazaar | bankbazaar.com | Online marketplace providing customized rate quotes on loans and insurance products | Chennai | $80M |
| 4 | policybazaar | policybazaar.com | Leading online insurance aggregator in India | Gurgaon | $69.6M |
| 5 | FINO PayTech | finopaytech.com | Financial inclusion technology provider | Mumbai | $65M |
| 6 | ItzCash | itzcash.com | Multi Purpose Prepaid Cash Card | Mumbai | $50.6M |
| 7 | Capital Float | capitalfloat.com | Online lending platform for small businesses | Bangalore | $42M |
| 8 | Mswipe | mswipe.com | PoS terminal for accepting card payments | Mumbai | $35M |
| 9 | Ezetap | ezetap.com | Payment device maker | Bangalore | $35M |
| 10 | Citrus Pay | citruspay.com | Payment gateway and mobile wallet | Mumbai | $34.5M |
| 11 | MoneyOnMobile | money-on-mobile.net | Mobile wallet, recharge and payments | Mumbai | $29.7M |
| 12 | Suvidhaa | suvidhaa.com | Payment services through retail outlets and mobile app | Mumbai | $25M |
| 13 | Loylty Rewardz | loylty.com | Loyalty relationship management company. | Mumbai | $24.4M |
| 14 | APNAPAISA | apnapaisa.com | Online marketplace for loans and investment products | Mumbai | $20.2M |
| 15 | Cogencis | cogencis.com | Real-time market data and financial news | Mumbai | $16.5M |
| 16 | FundsIndia | fundsindia.com | Online investment platform for mutual funds other financial products | Chennai | $15.41M |
| 17 | Transerv | transerv.co.in | Digital payments solution provider | Mumbai | $15M |
| 18 | PayMate | gopaymate.com | Mobile Payments Financial Services | Mumbai | $14M |
| 19 | Coverfox | coverfox.com | Insurance aggregator and selling platform | Mumbai | $14M |
| 20 | Fintellix | fintellix.com | Analytics, Risk Compliance Solutions for Banking | Bangalore | $12.5M |
| 21 | NeoGrowth | neogrowth.in | NBFC for small business lending | Mumbai | $11.6M |
| 22 | Razorpay | razorpay.com | Payment gateway solutions | Jaipur | $11.6M |
| 23 | Lendingkart | lendingkart.com | Online platform that provides working capital for SMBs in India | Ahmedabad | $10.65M |
| 24 | QwikCilver | qwikcilver.com | Multi-brand gift card store and B2B backend technology provider | Bangalore | $10M |
| 25 | MyUniverse | myuniverse.co.in | Web mobile based personal finance management platform | Mumbai | $9.7M |
| 26 | MoneyView | moneyview.in | Personal finance smartphone app | Bangalore | $8.5M |
| 27 | Cloud Lending | cloudlendinginc.com | Cloud based management platforms for lending institutions. | San Mateo | $8.15M |
| 28 | Prizm Payment Services | prizmpayments.com | Electronic Payment Service Provider | Chennai | $8M |
| 29 | Chillr | chillr.in | Smartphone application for P2P money transactions | Mumbai | $7M |
| 30 | faircent | faircent.com | Virtual marketplace for money borrowers and lenders | Gurgaon | $6.75M |
| 31 | Chargebee | chargebee.com | Managed subscription billing service for SaaS | Chennai | $6.17M |
| 32 | JusPay | juspay.in | Digital payments gateway for eCommerce merchants | Bangalore | $5.9M |
| 33 | Agile Financial Technologies | agile-ft.com | BFSI software provider | Mumbai | $5.74M |
| 34 | EKO | eko.co.in | Branchless Mobile Banking | Delhi | $5.5M |
| 35 | The Mobile Wallet | themobilewallet.com | Mobile wallet provider | Mumbai | $5M |
| 36 | OnEMI | onemi.in | Alternative payments solution for e-commerce companies to allow users to buy and pay later | Chennai | $5M |
| 37 | Heckyl | heckyl.com | Real time financial information news analytics for markets businesses | Mumbai | $4.75M |
| 38 | RKSV | rksv.in | Online retail brokerage firm | Mumbai | $4M |
| 39 | HealthHiway | healthhiway.com | Care coordination solutions for healthcare organizations | Hyderabad | $4M |
| 40 | CustomerXPs | customerxps.com | Fraud Customer experience management solutions for financial, retail and telecom industry | Bangalore | $4M |
| 41 | ComplyGlobal | complyglobal.com | Cloud based compliance platform | Bangalore | $3.8M |
| 42 | Tracxn | tracxn.com | Market intelligence platform for private market investing | Palo Alto/Bangalore | $3.7M |
| 43 | Cleartax | cleartax.in | Free Income Tax preparation and e-filing portal | Delhi | $3.42M |
| 44 | Scripbox | scripbox.com | Web-based platform enabling investing in mutual funds | Bangalore | $3.22M |
| 45 | BankerBay | bankerbay.com | Web-based deal origination tool for PE firms and investment banks | Bangalore | $3M |
| 46 | rubique | rubique.com | Online marketplace for financial products | Mumbai | $3M |
| 47 | Paynear | paynear.in | mPOS solutions provider | Hyderabad | $2.5M |
| 48 | 5nance | 5nance.com | Financial planning and management tool | Mumbai | $2.5M |
| 49 | CreditMantri | creditmantri.com | Credit management services | Chennai | $2.5M |
| 50 | Easypolicy | easypolicy.com | Online selling and comparison platform for insurance | Noida | $2.2M |
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