FinTech StartUp .com

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

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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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