4 FinTech startups driving Financial Inclusion for Indian Enterprises

Financial inclusion refers to the process of ensuring that individuals and businesses have access to useful and affordable financial products and services that meet their needs. These include transactions, payments, savings, credit, and insurance, delivered responsibly and sustainably. The goal is to promote economic growth, reduce poverty, and enhance overall well-being by making financial services accessible to all, especially marginalized and low-income populations.

Financial inclusion aims to create a more equitable society by empowering people and enterprises financially and enabling them to contribute to economic development. Underserved and unbanked populations in India are receiving access to affordable and accessible financial services through the use of FinTech firms. Rural and remote areas have been significantly benefited by mobile banking, digital payment platforms, and online lending services. Mobile wallets and the Unified Payments Interface (UPI) have revolutionized digital transactions, enabling even those without traditional bank accounts to participate in the financial system.

Financial inclusion is set to significantly benefit enterprises and businesses by broadening their access to financial resources and services. When businesses, especially small and medium-sized enterprises (SMEs), have access to credit, insurance, and efficient payment systems, they can invest in growth, manage risks better, and enhance their operational efficiency. This access to capital enables businesses to expand, innovate, and increase their productivity. Additionally, financial inclusion fosters a more competitive market environment, driving businesses to improve their products and services.

Listed below are 4 FinTechs enabling Financial Inclusion for enterprises in India: 

• Fundfina

Fundfina is a fast-growing FinTech for financial inclusion that is on a mission to disrupt cash-flow-based financial services for small businesses in emerging markets. Its mission is to provide affordable, accessible and appropriate financing through an open and secure marketplace platform. Since its launch in 2020, it has served over 1 million MSMEs, retailers and merchants across India by embedding its financial inclusion indices and working capital propositions over open APIs.

• ftcash

ftcash is a fast-growing financial technology venture that aims to empower micro-merchants, small businesses, retail chains and home-based entrepreneurs with the power of mobile payments. The vision is to enable offline payment transactions quickly by aggregating all payment methods, including credit cards, debit cards, mobile wallets (such as Paytm, Mobikwik, etc.), and PayPal, under one channel.

• Ovik Finance

Ovik was founded in 2021 with the vision to address 3 major challenges: lack of trust in the distribution network, lack of access to the right financial product, and lack of collateral as security for finance faced by all the small and medium enterprises (SME) around the globe that hamper their growth potential. Ovik offers unsecured, revolving credit limits via a digital platform for Supply Chain Finance/Channel Finance (SCF/CF), which will be based on alternately secured financial products. The credit & risk models are forward-looking and equipped with advanced technologies, statistical models and various available data, including alternative data.

• SAMRIDDH KENDRA

Samriddh Kendra is an emerging FinTech working in the field of finance and technology to bridge the gap between rural customers and finance institutions. It aims to create rural entrepreneurs, and they will provide financial services in their areas, i.e., business loans, SMEs, personal loans, credit cards and insurance services.  In May 2023, Samriddh Kendra also launched a social impact program called “Samriddh for All.” This program is focused on promoting financial literacy, entrepreneurship, and employment opportunities in underserved communities. The campaign will give rural entrepreneurs the opportunity to start their own financial dukaan with zero investment.