Is it Lucrative to Invest in Indian FinTech Companies?
Around 400 FinTech companies were operating in India in 2017-2018 and continuously growing. The revenue generated in India due to FinTech companies will touch $2.4Bn by 2020 by looking at the growing graph. Due to the Restructuring & Modification made by the Reserve Bank of India and the Government of India, FinTech investments are also growing tremendously. They have increased to make the Indian FinTech growth market more digital and user-friendly.
Digital Payments are just about 13% of Total Volume, and 87% of the volume of transactions happen through cash. As FinTech is set to grow exponentially in the Indian growth market, it is a Lucrative option to invest in Indian FinTech Companies.
These specific markets are likely to become Investor’s zone as proving profitable in the time to come.
1. Lending Business (Peer to Peer)
P2P lending startups connect lenders to borrowers directly and create a platform for people to connect for digital transactions. Borrowers have access to easier and faster capital with this particular category.
2. Payment Services
This Mode of services connects banks and users within and via 3rd party app. This mainly includes digital wallets to enable quick transactions. As soon as a payment is credited, it reflects into an account instantaneously.
3. Mobile Banking Solutions
The government of India is Pushing Secure Digital mode. Hence, Public and private banks have enabled digital banking through mobile apps and net banking software. Still, there are few banks to adopt digital technology for transactions. Hence, there is an investment opportunity waiting to tap this sector.
4. Cross Border Remittance services
Remittance is the transactions between banks and users to transact in different currencies & countries. It is of high potential to invest in this FinTech Remittance Service Provider or medium scale bankers.
5. Insurance adopting FinTech
Many insurance companies are adopting FinTech to enhance and smoothen their processes. As insurance companies are going digital, customers need not wait for days for insurance premiums to be calculated. Based on analytics data, insurance calculations is now faster through apps and software. Investment in startups is increasing tremendously.
6. Crowdfunding
In the US and UK, the Crowdfunding business is moving upwards for raising capital for startups. In India, this trend is also gaining good recognition as one of the FinTech areas to invest in. Potential global growth in crowdfunding FinTech is $16.2 billion.
7. E-commerce Platforms
E-commerce platforms are built to connect buyers and sellers digitally, where secure transactions in large volumes are processed. This FinTech Platform is likely to be the largest investment potential.
