Top 10 Fintech Companies In India
As its name suggests, fintech combines finance and technology. Technology is being used by many market participants to streamline financial services like loan, insurance, investment, trading, budgeting, and much more.
Numerous businesses are concentrating on specialised industries as the fintech sector grows. It goes without saying that the development has been extremely quick. The best financial solutions may be found in India, which also has one of the oldest and richest cultures in the world.
According to the recently published Indian Fintech Report, India currently has the second-largest fintech ecosystem in the world with the United States being the first. Additionally, for the first time in 2019, Indian FinTechs raised more money than Chinese FinTechs did.
India's biggest e-wallet, commerce, and mobile payments platform is known to be Paytm. Paytm began as a recharge platform in 2010, but it has since switched to a marketplace and virtual bank business model.
Additionally, it was a forerunner of the cashback business concept. The business has evolved into one of India's largest players in the mobile payment, banking, marketplace, gold, recharge, and bill payment industries, among others, with around 100 million registered users.
The Paytm business strategy combines a marketplace, a centralised payments system, a bank, and recharge and bill payment services. It also offers users an e-wallet and alternatives for reservations and bookings. Previously, the only services included in the Paytm Business Model were cellphone recharge and bill payment.
The Paytm business model has expanded to include online recharge services for cell subscriptions, TV channel subscriptions, data cards, and metro cards, among other services.
Paytm wallet is a semi-closed wallet (approved by RBI) used to store currency in digital form which can be used to buy goods and services (including financial services) at identified merchant locations or establishments (like petrol pumps, a supermarket, your barber’s shop, movie hall, etc.) which have a specific contract with the company to accept these payment instruments.
An online payment solution in India called Razorpay enables businesses to take payments or instalments from customers. It also works with companies to computerise disbursements to sellers and employees.
Razorpay enables small, medium, and large enterprises to collect payments in a variety of instalment options, including UPI, debit and credit cards, online wallets, and others.
The commission structure is a major component of Razorpay's business model. Each membership plan swap conducted through the company's gateway is subject to an expenditure fee of 0.25 to 0.5 percent. Nevertheless, the Razorpay 2.0 item suite accounts for about 30% of the business' overall revenue.
By setting up form 2.0, Razorpay has sparked a number of future revenue streams. On each transaction made through their payment gateway, the organisation levies a two percent fee.
Through its website or application, the business provides a platform for businesses to receive, handle, and distribute online payments. It refers to introducing monetary exchanges and executives who aren't bothered so that new enterprises may concentrate on various stages of growth.
More than 8 million businesses already use Razorpay, according to the company, which also claims that the COVID-19 advanced transformation led to significant growth in 2020. In addition, Razorpay claims that it processed $40 billion (about INR 3,00,000 crores) in total payments, and that income increased by 35 to 45 percent month over month until 2020.
CRED is a Bengaluru-based Fintech platform that enables credit card payments through its app and grants customers access to exclusive deals. Former creator of Freecharge Kunal Shah created it in April 2018. You may manage and settle all of your credit card debt with CRED.
It not only offers special credit card discounts but also keeps track of expenditures. With a valuation of $2.2 billion and a $215 million fundraising round led by Falcon Edge Capital and Coatue Management LLP, CRED joined the Unicorn Club in April 2021. A testament to CRED's incredible business approach is that they have reached this level in just two and a half years.
CRED offers benefits to customers who use the app to pay their bills. The offerings are provided by CRED in collaboration with companies. As a consequence, the companies acquire visibility and popularity on a platform where customers are already making purchases. As a consequence, CRED receives more proposals for their application to show. Visitors now have greater motivation to download the app and start using it to pay their bills.
Customers who pay credit card bills, the CRED app, and the companies who provide deals on the app are the three pillars of the company's business strategy. In order to access CRED programs, a credit score of more than 750 must be obtained. This application also allows users to share certain data such as credit card numbers, access to emails to track users' expenses and due amounts, credit score, and how they invest their money.
While there are several foreign firms offering mobile wallet services in India today, one of the first Indian mobile wallet companies, MobiKwik, has managed to carve out a position for itself despite the fierce competition in the market.
For instance, as a user, you could use it to buy bus tickets on any well-known bus booking website or to order and pay for pizza over the phone using its Android/iOS/BB/Windows App. It is a prepaid financial product that the Reserve Bank of India has authorised.
Bipin Preet Singh and Upasana Taku created MobiKwik in 2009. According to the Gurugram-based digital wallet, the platform has over 107 million members, 3 million retailers, and 200+ billers.
MobiKwik is really secure. You can rely on every dollar in your wallet. Additionally, you may make advantage of the additional in-app security options that are accessible on all mobile platforms. These include iOS, Windows, and Android.
MobiKwik's business model is built on the P2P transactions that happen with the use of its app, much like the business models of any other mobile wallet-based digital payments firm.
Mobikwik now derives its income from commissions on each transaction, business partnerships, and the adverts they deem appropriate for their app. Additionally, MobiKwik makes fee-based revenues through cross-selling mutual fund and insurance products.
BillDesk, an Indian online payment gateway company, was founded in 2000 by a group of former Arthur Andersen professionals. BillDesk continues to be at the forefront of the development of digital payments in India, developing Internet-based payment products that make it easy for customers to make payments online. Bill Desk is praised for being one of the first fintech businesses to use a B2B business model.
When Billdesk first began, it linked banks with any business or utility that needs to collect client payments.
This business model's lack of end-consumer acquisition for BillDesk—instead, the company would only receive a commission from the merchant, bank, or utility for each transaction it facilitated—was a key component. Many Indian businesses, organisations, and banks use the platform. This comprises businesses in the telecom, insurance, e-commerce, and financial services sectors, as well as charitable groups and numerous sources of entertainment.
PhonePe supports services, payments, and online transactions for a variety of goods offered on the PhonePe app, website, or any other third-party merchant storefronts (online or offline).
Not a recognised bank or online payment bank, PhonePe. It is an application that offers a service independent of any banking services. PhonePe offers a safe and secure online transaction while using a monopoly to make money.
With its fantastic products and services, it has significant prominence and widespread fame throughout India. PhonePe offers the greatest features and offers for payment and generates revenue in a completely traditional way. PhonePe charges the commission on the payments made by the customers from any online or offline merchants.
However, the UPI transactions are based on IMPS that's why it doesn't charge any additional money from the banks. The world's cheapest POS gadget, PhonePe, uses Bluetooth technology and is powered by that technology. PhonePe makes money by advertising various products on their app with various deals and coupons. The majority of its income comes from recharges and bill payments.
Additionally, PhonePe benefits from Yes Bank's analytic database by making its goods more user-targeted and earning money from it. Flipkart also makes use of the service for tracking purchases and finding superior ads.
Pine Labs, an Indian merchant platform firm, was established in 1998 as a straightforward card-based payment and loyalty programme. It currently serves as a resource for merchants and consumers by providing financing options and last-mile retail transaction technologies.
Pine Labs' actual payments adventure, however, started in 2009 when it entered the mainstream payments market and opted to provide merchants options by linking to banks and other financial institutions with the brand-new Pine Labs PoS devices.
The business was well-aware that retailers were looking for ways to improve client interaction throughout the payment process. As a result, it started working with banks and payment aggregators and made sure that all types of digital payments could be processed by its PoS devices.
As a result, it changed into a merchant platform with offerings for payments, risk analysis, multi-channel analytics, merchant loans and insurance, brand offers, cashback, integrated invoicing, and more. It presently claims a network of more than 100 brands and 21 financial services companies.
The creators of the BharatPe UPI, in contrast to PhonePe and GooglePe, chose to focus their efforts on a single QR Code application.
Before BharatPe joined the market, the payment system was closed-loop. If the retailer had a PhonePe account, they were forced to complete the transaction using only a valid PhonePe QR code.
Due to interoperable QR codes for payments, BharatPe's entry into the market offered a distinctive value proposition that attracted numerous retailers. Zero MDR is the additional factor that helped BharatPe be accepted by more retailers.
Even if the business currently holds between 8 and 10% of the market, it is still too early for it to be successful. In order to compete against industry giants like PhonePe and Google Pay, the company is currently aggressively concentrating on gaining customers and expanding its market share.
In an effort to ensure fairness in the quickly developing digital payments sector of the nation, The National Payments Corporation of India has established new standards for digital payment apps that cap their portion of the total volume of transactions on the unified payment interface at 30%.
Four former Flipkart employees founded the online investing platform Groww in Bengaluru in 2016.
Groww is the first fintech startup in India to allow direct access to mutual funds, giving individuals complete access to their beloved portfolio. It uses a DIY (Do It Yourself) methodology for its consumers, which is recommended by most millennials and allows investors to create and maintain their own investment portfolios on an individual basis without the assistance of a third party.
Groww first launched in 2016 as a platform for direct mutual fund investments. However, Groww added stock brokerage in 2020 and simultaneously developed services for digital gold, ETFs, intraday trading, and IPOs in response to user demand and a spike in stock investing and trading.
A business called CoinDCX is involved in cryptocurrency trading networks and focuses on offering financial services linked to cryptocurrencies. It focuses on providing rapid, risk-free, simple, and dependable trading experiences for the clients.
Additionally, it is regarded as the biggest and safest platform for buying and selling different kinds of cryptocurrencies. The business has created a trading platform that allows users of CoinDCX to trade a variety of market-first items leveraging exchange liquidity.
Like other trading platforms, CoinDCX generates revenue by collecting a transaction fee for each exchange. In addition, the corporation earns money from the amount of withdrawals, deposit fees, and trading commissions. The trader converts INR into cryptocurrencies, and DCXInsta converts cryptocurrencies back into INR.
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