49 startups have received seed funds in the last 1 year and 7 have received funding from angel investors. This is a major indicator of the investor’s confidence in the revival of the economy and the Fintech startup space.
A lot of early-stage innovation in India was focused on improving the experience for the customers during Sales & Onboarding. This has led to the rise of frontend apps with a great customer interface but subpar delivery through archaic back-office processes. We believe that during this year, the focus will shift to strong and flexible backend platforms with integration capabilities & cloud readiness.
This would mean heavy investment in:
Core Banking Platforms
Open Banking Platforms
Digital Banking Platforms
Open Insurance Platforms
The market is also evolving in terms of cross-selling opportunities with players trying to add adjacent products or reach out to newer segments. B2B market looks like a ripe area for growth as the banking sector is looking for more direct involvement with fintech. They are looking to invest in Core banking, API management, Underwriting, Digital engagement, and CRM solutions.
A major chunk of investment seen this year has been in the early-stage startups. 49 startups have received seed funds this year and 7 have received funding from angel investors. This is a major indicator of the investor’s confidence in the revival of the economy and the Fintech startup space.
The past year has also seen over 30 fintech startups raise funds as a part of their Series B or higher rounds. Many of these startups are looking to explore international markets for expansion. We believe that the Middle East and South Asia would be the best market for Indian startups due to proximity as well as similarity in market expectations. Lending, KYC, and Regtech would be good areas to enter the Middle East due to the potential of scale in the market.