Success stories of Fintech Start-ups

Fintech is a new financial industry that applies technology to improve financial activities. FinTech is the new applications, processes, products, or business models in the financial services industry, composed of one or more complementary financial services and provided as an end-to-end process via the Internet.

Success stories of Fintech Start-ups

1.    Paytm

Paytm is an RBI-licensed semi-closed pre-paid payment instrument. The app also allows users to shop for both physical and digital goods. The company started out with mobile recharges, DTH plans and bill payments, launched goods marketplace in Feb 2014. Raised undisclosed funding from Ratan Tata in March 2015. Partnered with Alibaba's cloud computing arm, AliCloud to expand its payments network to global markets. In Aug 2015, the company received in-principal payments bank license. As of Oct 2016, the company had 135M wallet users. In Jan 2017, the company received approval from RBI to launch Paytm Payments Bank. In Feb 17, the company announced $90M investment in its QR code-based payment network. In Mar 2017, Paytm launched APIs, SDKs, and plugins which would enable businesses to collect recurring payments. 

Founded: 2010     
Location: Noida(India)     
Total Funding: USD 2.48B  
Investors: Berkshire Hathaway, SoftBank Group, MediaTek and 38 Other Investors   

2.    Policy Bazar

Policybazaar is an online insurance aggregator for comparative analysis of products from various insurers based on price, quality and key benefits. Currently, the website offers information to users to help them make informed decisions along with solution driven customer service. They feature content in various forms such as top five features of a product, best sellers and conversion rates. Raised $40M in April 2015 for Series D round from PremjiInvest. 

Founded: 2008     
Location: Gurgaon (India)     
Total Funding: USD 372M  
Investors: Temasek, Tiger Global Management, SoftBank Investment Advisers and 18 Other Investors 

  

3.    Pine Labs

Pine Labs provides POS software solutions for offline retailers and brands. The company's Plutus POS solutions is a cloud-based software solution which can be integrated with a generic POS terminal and allows retailers to accept debit & credit cards, e-wallets, QR code and UPI based payments. Its features include marketing tools, reporting & analytics and others. The company offers payment gateway API solutions, mobile payment solutions (myPlutus), loyalty & gift card programs, and others. It also offers value-added solutions like EMIs, discounts, pay by points, loyalty solutions, e-Wallets, targeted promotions, dynamic currency conversion and more. Its mobile app is available for Android and iOS. 

Founded: 1998     
Location: Noida (India)     
Total Funding: USD 227M  
Investors: Temasek, PayPal, Actis and 5 Other Investors    

4.    Mobikwik

MobiKwik is a digital wallet service. Allows users to store up to Rs 50,000 in wallet and recharge mobiles, pay bills and shop across merchants in India across various channels – Apps, Website, Mobile website, SMS or IVR. Also offers partial payment for ticket reservation and cash pick up for bus tickets booking. Provides short-term personal loans to its wallet users. 

Founded: 2009     
Location: Gurgaon (India)     
Total Funding: USD 165M  
Investors: Sequoia Capital, NET1, GMO Venture Partners and 8 Other Investors   

5.    Lendingkart

Lendingkart is a web platform that enables SMBs to apply for collateral free working capital loans. The company uses cash flow, credit history, and customer experiences to evaluate the business. Claim to disburse the loan within 3 days. Funds offered range from INR 50 thousand to INR 1 crore with tenure of 1 month to 1 year. In Feb '16, the company tied up with Voonik and Craftsvilla to offer loans to their merchants. In March '16, entered into strategic partnership with Mahindra's SmartShift, a digitally enabled aggregator for cargo owners and transporters. to make working capital fund easily accessible to SmartShift SMEs. In April 2017, the company raised $4.65M in the form of non-convertible debentures (NCD) from Anicut Capital. Claims to have disbursed over 12,000 loans to over 9,500 SMEs across 23 diverse sectors, as of Aug'17. 

Founded: 2014     
Location: Ahmedabad (India)     
Total Funding: USD 155M  
Investors: Aditya Birla Capital, Fullerton Financial, Saama Capital and 20 Other Investors    

6.    Financial Softwares Systems

Financial Software Systems (FSS) offers a range of services for banks and financial institutions in the areas of electronic payment, financial transaction processing solutions. Its two business divisions comprise of FSSTechnologies for providing clients with a single-window view of solutions and services to meet all requirements within the payments framework; and FSSNeT offering hosted payment processing services across all delivery channels including ATMs, POS, internet and mobile with authorization by bank hosts, interchanges and co-networks. It had previously raised three rounds of private equity money from Carlyle, New Enterprise Associates (NEA) and Jacob Ballas Capital India and raised a pre-IPO round in Oct 2014 from Premji Invest. It is looking at growing its topline from INR 570 crore in March 2013 to nearly INR 2,250 crore by 2018-19. Headquartered in Chennai, India, FSS has established a global footprint in Australia, Canada, Europe, Middle East, Singapore and the United States of America. Serves over 100 clients including ICICI Bank, HDFC Bank. Looking to IPO in 2016.  

Founded: 1991     
Location: Chennai (India)     
Total Funding: USD 127M  
Investors: Premji Invest, Jacob Ballas Capital, New Enterprise Associates and 2 Other Investors    

7.    InCred Finance

InCred Finance is an alternative lending platform focusing on SME loans, consumer & personal loans, home loans and education loans. For education loan, the company is targeting students studying abroad and is planning to tie-up with top-notch institutions in the west. For mortgages & SME loans, InCred plans to use the DSA network. For personal loans, the company would access borrower's credit history and sanction instant loan. The company plans to launch its offerings in 10 cities. Acquired Instapaisa, a B2C lending platform. In Aug 2016, InCred announced a $75M funding round. In the $75M round, Bhupinder Singh invested $22M, Anshu Jain - former Deutsche Bank co-CEO invested $7.5M, Ranjan Pai - MD & CEO of Manipal Group invested $22M, Gaurav Dalmia - Founder and Chairman of Landmark Holdings invested $7.5M, IDFC PE and Alpha Capital invested $7.5M each 

Founded: 2016     
Location: Mumbai (India)     
Total Funding: U SD 126M 
Investors: Paragon Partners, Invesco Asset Management, Kotak Mahindra Bank and 16 Other Investors    

8.    Capital Float

Capital Float is a digital finance company providing working capital and term loan products to small businesses and online sellers. Offers loans based on cash flows, expected receivables, financials, CIBIL score, & banks statements. Borrowers can apply online and once approved, the loan is disbursed to their bank account. 

Founded: 2013     
Location: Bangalore (India)     
Total Funding: USD 124M  
Investors: Jai Rupani, Prakash Ramachand Belani, Sunil Bodaram Luthria and 38 Other Investors    

9.    Bank Bazar

Capital Float is a digital finance company providing working capital and term loan products to small businesses and online sellers. Offers loans based on cash flows, expected receivables, financials, CIBIL score, & banks statements. Borrowers can apply online and once approved, the loan is disbursed to their bank account. 

Founded: 2013     
Location: Bangalore (India)     
Total Funding: USD 124M  
Investors: Jai Rupani, Prakash Ramachand Belani, Sunil Bodaram Luthria and 38 Other Investors    

10.                       Digital Insurance

Digit is an IRDA licensed internet first general insurer launched by Fairfax Holdings and Kamesh Goyal, a former executive from Allianz. Fairfax holds 45% stake in the company. Offers insurance for cars, mobile handsets, travel, and jewellery. 

Founded: 2016     
Location: Bangalore (India)     
Total Funding: USD 100M  
Investors: Fairfax Financial Holdings  

  

Nitisha Mandhanya (B.Com.)

Fintech Intern 

AirCrews Aviation Pvt Ltd

 Nitisha@fintech-start-up.com 

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by Capt Shekhar Gupta and Shina Kalra | 1 January 2019

Top 10 Ingenieurhochschulen in Asien:

Factors That Affect Business Profitability

Factors That Affect Business Profitability

Profits are the life-blood of a market economy. Achieving a sufficiently high level of profit is crucial in sustaining long run business growth. What strategies can businesses adopt to improve their profitability?

                                 A financial benifit that is realized when the amount of revenue gained from a business activity exceeds the expenses ,costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners,who mayor not may not decide to spend it on the business.

Factor Affecting Profit

·    Degree of compition

The  degree of competition a firm faces is important. If a firm has monopoly power then it has little competition ,therefore demand will be more inelastic .this enables the firm to increase profits by increasing the price.However government regulation may prevent monopolies abusing their power.

·    Market Compitition

If the market is very competitive then profit will be low .This is because consumers would only buy from the cheapest  firms.

·    Market Contestability

Market contestability is how easy it is for new firms to enter the market.if entry is easy then other firms will always face threat of competition,even if it is just “Hit and run compition”This Will reduce profits.

·    Strength of Demand

Demand Will be high if the product is faishionable

Eg.mobile phone companies.

·    State of the Economy

If there is economic growth then there will be increased demand for most products especially luxury products.

·    Successful Advertising

A successful advertising campaign can increase demand and make the product more inelastic,however the increased revenue will need to cover the costs of the advertising.sometimes  the best methods are word of mouth.

·    Substitutes

If there are many substitues or substitues  are expensive then demand for the product will be higher.Similarly complementary goods will be important for the profits of a company.

·    Degree of costs

An increase in costs will decrease profits ,this could include labour costs,raw material costs and costs of rent For example,

1.           A devalution of the exchange rate would increase cost of imports therefore companies who imported raw materials would face an increase in costs.

2.           If the firm is able to increase productivity by improving technology then profits should increase.

·    Price Descrimination

If the firm can price discriminate it will be more efficient.this involves charging different prices for the same good,so the firm can charge higher prices to those with inelastic demand. 

Aditi Shukla MBA(finance)

Intern

Aircrew Aviation Private Limited

aadi.fintech@gmail.com

https://www.linkedin.com/in/aditi-shukla-b42724182

https://www.facebook.com/aadi.shukla.1426

Microfinance

        Concept Of Microfinance

Microfinance is a category of financial services targeted at individuals and small businesses who lack access to conventional banking and related services. Microfinance initially had a limited definition - the provision of microloans to poor entrepreneurs and small businesses lacking access to credit.

                                    What is Microfinance?

Microfinance, also called microcredit, is a type of banking service that is provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. While institutions participating in the area of microfinance most often provide lending (microloans can range from as small as $100 to as large as $25,000), many banks offer additional services, such as checking and savings accounts, and micro-insurance products; and some even provide financial and business education. Ultimately, the goal of microfinance is to give impoverished people an opportunity to become self-sufficient.

Microfinance allows people to take on reasonable small business loans safely, and in a manner that is consistent with ethical lending practices. Although they exist all around the world, the majority of microfinancing operations occur in developing nations, such as Uganda, Indonesia, Serbia, and Honduras. Many microfinance institutions focus on helping women in particular.

                                   How Microfinance Works

Microfinancing organizations support a large number of activities that range from providing the basics—like bank checking and savings accounts—to startup capital for small business entrepreneurs and educational programs that teach the principles of investing. These programs can focus on such skills as bookkeeping, cash-flow management, and technical or professional skills, like accounting. Unlike typical financing situations, in which the lender is primarily concerned with the borrower having enough collateral to cover the loan, many microfinance organizations focus on helping entrepreneurs to succeed.

In many instances, people seeking help from microfinance organizations are first required to take a basic money-management class. Lessons cover understanding interest rates, the concept of cash flow, how financing agreements and savings accounts work, how to budget, and how to manage debt.

Once educated, customers may apply for loans. Just as one would find at a traditional bank, a loan officer helps borrowers with applications, oversees the lending process, and approves loans. The typical loan, sometimes as little as $100, may not seem like much to some people in the developed world. But to many impoverished people, this figure often is enough to start a business or engage in other profitable activities.

                               Benefits of Microfinance

The World Bank estimates that more than 500 million people have directly or indirectly benefited from microfinance-related operations. The International Finance Corporation (IFC), part of the larger World Bank Group, estimates that, as of 2014, more than 130 million people have directly benefited from microfinance-related operations. However, these operations are only available to approximately 20 percent of the three billion people who qualify as among the world’s poor. In addition to providing microfinancing options, the IFC has helped establish or improve credit reporting bureaus in 30 developing nations. It has also advocated for adding relevant laws in 33 countries that govern financial activities.

The benefits of microfinance extend beyond the direct effects of giving people a source for capital. Entrepreneurs who create successful businesses, in turn, create jobs, trade, and overall economic improvement within a community. Empowering women in particular, as many microfinance organizations do, may lead to more stability and prosperity for families. 

                                    Microfinance Products and Services

#Microloans: Microloans (also known as microcredit) are loans that have a small value; most loans are less than $100 in size. These loans are generally issued to finance entrepreneurs who run micro-enterprises in developing countries. Examples of micro-enterprises include basket-making, sewing, street vending and raising poultry. The average global interest rate charged on micro-loans is about 35%. Although this may sound high, it is much lower than other available alternatives (such as informal local money lenders). Moreover, MFIs must charge interest rates that cover the higher costs associated with processing the labor-intensive micro-loan transactions. (Learn more about microfinance in Microfinance: Philanthropy Through Industry.)

#Microsavings: Microsavings accounts allow individuals to store small amounts of money for future use without minimum balance requirements. Like traditional savings accounts in developed nations, micro-savings accounts are tapped by the saver for life needs such as weddings, funerals and old-age supplementary income.

#Micro-Insurance: Individuals living in developing nations have more risks and uncertainties in their lives. For example, there is more direct exposure to natural disasters, such as mudslides, and more health-related risks, such as communicable diseases. Micro-insurance, like its non-micro counterpart, pools risks and helps provide risk management. But unlike its traditional counterpart, micro-insurance allows for insurance policies that have very small premiums and policy amounts. Examples of micro-insurance policies include crop insurance and policies that cover outstanding balances of micro-loans in the event a borrower dies. Due to the high administrative expense ratios, micro-insurance is most efficient for MFIs when premiums are collected together with microloan repayments.

Aishwarya Oza(MBA FINANCE)

Intern

AirCrews Aviation Private Limited

aish.fintech@gmail.com

linkedin.com/in/aishwarya-oza-196494167

Mobile Wallet

A mobile wallet, in simple terms, is a virtual mobile-based wallet where one can store cash for making mobile, online or offline payments. There are various types of mobile wallets in India, such as open, semi-open, semi-closed and closed - depending on the type of usage and payments that can be made. Wallets are growing rapidly as they help in increasing the speed of transaction, especially for ecommerce companies and all ecommerce marketplaces have integrated with such mobile wallets too.

Here are some mobile wallet companies in India and what they offer to their customers.

1.PayTm-PayTM is one of the largest mobile commerce platforms in India, offering its customers a digital wallet to store money and make quick payments.

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2.Amazon Pay-Amazon Pay is an online payments processing service that is owned by Amazon. Launched in 2007 globally and in India in 2017, Amazon Pay uses the consumer base of Amazon and focuses on giving users the option to pay with their Amazon accounts on external merchant websites, including apps like BigBazaar etc. You also get to Shop on Amazon using Amazon Pay.

3.Google Pay (formerly known as Tez)-As its part of the Google ecosystem they have scaled up their user base really quickly, inspite of being a late entrant. With Google Pay you can send money to friends, pay bills and buy online, recharge your phone. Since Google Pay works with your existing bank account, which means your money is safe with your bank. There's no need to worry about reloading wallets and you don't need to do additional KYC - which is required for all the other apps.

4.Yono by SBI-This mobile wallet application was launched by State Bank of India to let users transfer money to other users and bank accounts, pay bills, recharge, book for movies, hotels, shopping as well as travel. This semi-closed prepaid wallet offers its services in 13 languages and is available for non-SBI customers as well. This app also allows its customers to set reminders for dues, money transfers and view the mini-statement for the transactions carried out.

5.Citi MasterPass-Citi Bank India and MasterCard recently launched 'Citi MasterPass', India's first global digital wallet for faster and secure online shopping.By using this, Citi Bank debit and credit card customers become the first in this country to be able to shop at more than 250,000 e-commerce merchants. It ensures faster checkout with a single click or touch and stores all your credit, debit, prepaid, loyalty cards and shipping details in one place.

6.ICICI Pockets-Pockets by ICICI is a digital bank that offers a mobile wallet for its customers. It provides the convenience of using any bank account in India to fund your mobile wallet and pay for transactions.

7.HDFC PayZapp-PayZapp is a complete payment solution giving you the power to pay in just One Click. PayZapp lets you recharge your mobile, DTH and data card, pay utility bills, compare and book flight tickets, bus and hotels, shop, buy movie tickets, music and groceries, avail great offers at SmartBuy, and send money to anyone in your phone book.

8.PhonePe (now part of Flipkart)-PhonePe started in 2015 and in just 4 years it has been able to cross the 100 million download mark. From UPI payments to recharges, money transfers to online bill payments, you can do it all on PhonePe. Its got a very good user interface and is one of the safest and fastest online payment experience in India.

9.Mobikwik-MobiKwik is an independent mobile payment network that supposedly connects 25 million users with 50,000 retailers and more. This mobile wallet lets its users add money using debit, credit card, net banking and even doorstep cash collection service, which can in turn be used to recharge, pay utility bills and shop at marketplaces. Owing to the growing need for convenience, MobiKwik has also recently tied up with large and small time grocery, restaurants and other offline merchants.

10.BHIM Axis Pay-BHIM Axis Pay is a UPI banking app that lets you transfer money instantly to anyone using just your smartphone. Make online recharges to your prepaid mobile and DTH set-top boxes directly from the app.

Number of installs: 1,000,000+ (1 Million or 0.1 crore) on Android Play Store

11.JioMoney-JioMoney wallet has a simple interface and all the elements that matter are visible at once to users. For instance, your wallet balance, the option to recharge, send/request money, and pay at a shop are present on the main page itself. It is available in Google Play Store and Apple App Store.

12.Oxigen-Oxigen has a lively looking interface with a banner on special schemes running on top, followed by the options that are available. You can send or ask for money, pay bills and get recharges. Users feel secure with Oxigen while doing transaction because every time a six-digit one-time password (OTP) is sent to the registered mobile number. According to the company website, it has a retail footprint of 1,00,000 outlets and has processed over 2 billion transactions till date with a current transaction volume rate of 720 million transactions per annum. It has a large customer base of over 150 million. The Oxigen wallet app is available only to Android users.

13.State Bank Buddy-The mobile wallet app can be used to send money to new and registered customers, book movies, flights and hotels, as well as for shopping. It also has features like reminders to settle dues, recharge and pay bills instantly. This wallet app is available in 13 languages and allows users to set reminders for money transfers and clearing dues. The SBI Buddy app is available in Google Play Store and Apple App Store.

14.PayUMoney-PayUmoney is an Online Payment solution, which is the mobile-based online payment solution. Their main aim is to bring cashless payment through the use of mobile wallets in India. Encourages the use of Credit/ Debit card payments, Net banking for anything by the use of Mobile app without even Swiping Machine.

The salient feature of this digital wallet includes, it does not need a merchant to install any hardware. The mobile app allows typing the offers in a search URL to the Users using their unique id’s. The application also scans the QR code to search the favorites of the user.

15.Momoe-Momoe is the developing company located in Bangalore whose vision is to bring rapid change in online payment gateway and build a good bridge between the customer at the real world outlet such as grocery, medical store etc., from the small place till the big business.

Enabling the payment through the mobile phones with the mobile application which will be more comfortable for the customers. The payment is also possible by credit card and debit card by Mobile Application with MOMOE.

16.CITRUS-Citrus is the fast-growing online payment solution. The application offers One Tap transaction, Payment provider, and other aspects. The payment can be made during dinner, movies, parties, and where the bill can be split among friends. With the one tap system, they can compete with MobiKwik.

The citrus digital wallet is currently growing as a top mobile wallet in India with online payments like Cafe day, PVR cinemas, Ixigo, Meru cabs, Ticket new, Inox, Faasos and more.

17.LIME-Lime Wallet is an internet-based digital wallet, which is the Axis banks third largest private area. Also, allow users to store receipt data. Lime will act as a separate application, which will encounter any individual to share mobile wallets and make seamless peer to peer on the on-stream an offline dealers.

                                                                      Types Of Digital Wallet

NON HOSTED: The non-hosted or a direct payment gateway is inside merchant store, here no card information’s are being taken by the merchant. Here security is a most important process.

HOSTED: Redirect or hosted gateway include the transaction among the customer and the dealer is fully based on the online where the security will be provided in a various way through encryptionetc. will be done at each side, each and every step is being known by the user.

The advantage of the digital usage includes credit/ debit card, online money transfer, usage of wallets for money transfer. But it has a negative end, where the usage of cards in cities is high but in rural India, it’s difficult which is made possible by mobile wallet.

Aishwarya Oza

Intern

AirCrews Aviation Private Limited

aish.fintech@gmail.com

linkedin.com/in/aishwarya-oza-196494167

#Mobilewalletsinindia #PayTm #Amazonpay #Googlepay #Jiomoney #Lime #Citrus #Momoe #Payumoney #Statebankbuddy #Oxigen #Bhimaxispay #Mobikwik #Phonepay #Hdfcpayzapp #Icicipockets #Citimasterpass

#Yonobysbi #Typesofwallets