Top Indian Fintech Funding Deals (25th – 31st July)

Fintech adoption,globally, has increased exponentially over the past few years, with the fintech adoption rate rising from 16% in 2015, to 31% in 2017, to 60% in 2019 and hovering around 64%, ( as stated in an EY Report). The boom in the fintech sector can be noticed from the rapidly growing markets across India, China, UK, US, and South Africa.

While a need for automation drove AI/RPA adoption higher, the SME lending sector, too, gained momentum owing to various Governmental efforts. Digital payments and technology adoption in India accelerated post the market shock produced by the demonetization as well as the introduction of the UPI system. These ushered the formation and development of a host of solution providing fintechs, which was followed by a number of startup accelerators, venture capitalists keen on investing in potential fintechs.

While the internet is smeared with big-ticket fundings, provided herewith is a list of last week’s significant Indian fintech fundings that should not be sidestepped.

  1. Pine Labs Pine Labs, the digital retail payments company, has welcomed $101.5 million through a rights issue to its Singapore-based parent entity, Pine Labs Pte. Ltd. The funds were raised from investors such as Sequoia, PayPal, Temasek, and Sofina. Pine Labs aims to enhance its solutions for customer experience enhancement, expand markets and categories as well as prepare for an Initial Public Offering (IPO).
  2. PhonePeDigital payment fintech, PhonePe has received $97.9 million from its parent company PhonePe Pvt Ltd, in a bid to tap the Indian digital payment ecosystem as well as enhance its market position alongside competitors like Paytm, Google Pay and Amazon Pay. Currently, PhonePe’s app facilitates UPI transactions for approximately 150 million users.
  3. Kissht Mumbai-based consumer lending startup Kissht has secured $7 million from BAC Acquisitions, Sachin Bansal and Ankit Agarwal’s investment firm. The lending solutions provider aims to enhance its customers’ access to credit exponentially. Currently, the fintech has a footprint of more than 50 online and over 3,500 offline points of sale.
  4. CoverfoxCoverfox, a Mumbai-based InsurTech has raised $5.89 million. The online insurance brokerage supplier has partnered up with 35+ insurance providers to provide the policies and plans including car, bike, health, life and travel insurance.
  5. ProgCapSmall and Micro business lending solutions provider, Progcap, recently secured a fresh inflow of funds amounting to $5 million.  The investment was a part of its Series A round and was led by Sequoia India, along with participation from CIBIL, Freecharge    and existing investor such as GrowX Ventures Fund. The Delhi-based fintech aims to deliver its services to the retailers in Tier-  II, III, and IV areas, thereby increasing the retailers’ access to capital.

With technologies such as lending as well as payments leading the fintech market, it is expected that blockchain, behavioural analytics, and exposure monitoring will soon be widely accepted in the fintech arena.

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