Beams FinTech Fund looks to expand into the Middle East
By Leandra Monteiro
Beams Fintech Fund is India’s first-ever dedicated Growth Capital Fintech Fund, which invests in Companies operating at the confluence of Financial services and Technology space. The platform focuses on creating significant value for its portfolio companies and is looking to expand internationally and sees UAE well positioned to be the international hub to the rest of the Gulf, north and eastern African regions.
As one of the biggest trading partners, remittance partners, and FDI investors in India, UAE is equipped to provide the necessary capital and infrastructure to support the FinTech companies out of India.
Given the favourable demographic factors, the conducive regulatory framework pushed forward by the RBI, the CEPA, and the historical relationship between the two countries, this is the right time for institutions & investors in the region looking to build FinTech portfolios to diversify geographically by evaluating newer opportunities coming out of India.
With a target size of $120 million & a greenshoe option, Beams strategy is to invest $15 mn-$20 mn in Growth Stages, Series B & C rounds of FinTech companies led by high-quality founders. Beams follows a very strong co-investment approach towards investing and actively offers co-investment opportunities to its LPs. Beams plans to build a concentrated portfolio of a dozen FinTech companies in a market currently valued at $80 billion+ and is likely to touch $250+ billion by 2030. Beams is being launched by India’s first and largest integrated incubator, Venture Catalysts, that also has 9Unicorns, a $120 million early-stage sector-agnostic accelerator fund in its stable.
With more than 2.6 million members and a 30% population share, Indians constitute the largest expatriate community in the UAE and become the natural entry point for Beams portfolio companies. Middle East Banks, NBFCs, and Large Tech Founders can become part of Beams ecosystems to support the Middle East Fintech ecosystem.
On the need for a Fintech Fund, Anuj Golecha, Co-founder & Partner, Beams said, “Fintech opportunity is huge in India as it is the only tech segment in India that has created over $80 Bn in value in India and $8 bn in M&As. Our returns in BharatPe are a testament to the opportunity in the Fintech space in India. We have given 90x return to investors from BharatPe exit which turned Unicorn last year and are creating more Unicorns in this space. We have one of the best Fintech investing teams in India with an excellent track record.”
“Middle East & especially UAE plays an important role into India’s Tech ecosystem. Middle East investors are not only actively investing in India but supporting our Companies expand into Middle East. ADGM & ADIO has come up with special incentives to encourage Indian companies to come into Middle East and we are excited to help build the Fintech ecosystem in the region.,” said Deepak Ahuja, Fintech Expert Partner, Beams.
With higher adoption of technology and growing interest from Banks & FIs in UAE looking to collaborate on Technology, Product Creation & Partnerships with Fintechs, this would be the right time to bring models from India. Indian FinTechs can not only offer technology partnerships but also build larger outcomes in the region by the acquisition of domestic fintech players. They can collaborate by building larger regional platforms, build costs synergies etc
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