Fintechs in India are exploding. Increased funding for tech startups and consumers’ rising demand for alternative, digital solutions are further boosting these financial platforms in the region. Aside from big investments, innovation has also been key to success. Advancements in the digital payments sector—specifically in artificial intelligence and cloud computing—have included payment hubs, alternative payment channels, and lending and insurance. These are some of the many areas boosting India’s fintech market.
In 2018, India ranked second globally with its percentage of fintech users at 57.9%, according to a recent report by PwC, which falls behind China’s 83.5%. The report also recognized the impact of increasing partnership across various verticals—telecom companies, banks, and retailers. India currently has the most fintech hubs in Asia, according to London research company Findexable. Of the world's 100 leading fintech cities, six are located in India, including Bangalore, which ranked in seventh place, Mumbai (10th) and New Delhi (16th).
Expanding opportunities for credit within the region is another piece to India’s fintech growth. It’s something Rupeek Fintech has tapped into. In India, credit isn’t available to everyone, and often comes at the cost of high interest rates. The company combats this by offering credit against gold, an underutilized resource in the country according to Sumit Maniyar, founder of CEO of Rupeek. “In India, credit is a privilege and not a utility, whereas it should be a utility,” said Maniyar.
Rupeek is gaining traction in the region, growing at a rate of 20% month-to-month, according the Maniyar, with nearly 6,000 to 7,000 new customers exploring the options per month. Currently, the company has 4,000 repeat customers with an average monthly usage at 10,000.
The company offers a low interest rate at 0.89 percent per month to access credit. Maniyar also wants to explore offering credit against other assets such as property and diversifying the options for consumers. Backed by investors like Accel, Sequoia India, and Bertelsmann India, the company is planning to raise an additional Series C funding very soon.
As investments in India’s fintech industry continue to grow, the capital raise processes for Rupeek and other startups may prove to be quick.