The Unique Identification Authority of India (UIDAI) has refuted the fraudulent release or misuse of India's Aadhaar biometrics data after media reports claimed the release of Aadhaar data involving a private bank, its business correspondence agency and an e-sign agency; the UIDAI reports that an attempt was made to access data but internal security systems prevented the data's release; the incident exemplifies the strict security surrounding the use of Aadhaar data in India. Source
Online lending platform, Capital Float, received the Fintech Startup of the Year award at the India Fintech Awards 2016, demonstrating its kirana loan app which it says gives instant approval with no paperwork; the award provides Capital Float with INR 500,000 along with many event partner benefits; within the industry the company has also been focusing on the country's demonetization which has been helping business growth for fintech firms. Source
On Friday last week Capital Float struck a major deal with Amazon India to provide working capital solutions to Amazon's sellers. Amazon India is tied for largest e-commerce market share in India (with Flipkart) and Amazon relies exclusively on third party merchants in India. This partnership launched in October 2016 and has already successfully disbursed thousands of loans to businesses in the Amazon network. They will provide financing to companies in the smartphone, consumer electronics, consumer durables and fashion verticals to start with and they will add new verticals over time.
We are big fans of Gaurav and Sashank, the founders of Capital Float, and their mission in India. Capital Float is the largest digital lending platform to small and medium size enterprises (SMEs) in India with a specific focus on working capital management. They cater to over 5,000 SMEs and they have originated over $120 million in loans since their inception in 2013. They are one of the best funded fintech companies in India having raised over $40 million in venture capital from SAIF, Sequoia, Aspada and Creation Investments Capital Management. Most importantly, the founders come from large enterprises where they managed SME supply chain finance for years, so they know the pain points for SMEs that must deal with working capital cash flow management.
The Indian SME market is about $250 billion and it is ripe for disruption. Companies like Capital Float are well positioned to use technology to solve financial service infrastructure problems and to provide much needed access to capital to high quality companies. The best way to reach these companies is through established digital networks like the one Amazon India provides. We expect to see many similar deals with additional e-commerce marketplaces, travel portals, taxi aggregators and other online marketplaces. Capital Float already has similar deals with other leading Indian e-commerce players including Flipkart, Snapdeal and Shopclues.
For more information on the Indian fintech market you can watch the video from LendIt USA 2017 featuring Capital Float as well as Lendingkart, Finomena, Indifi, IndiaLends (PitchIt China winner 2016) and Quona Capital.
Indian digital lender Capital Float is reportedly beginning a fundraising deal that would result in Rs 300 crore ($47 million) of new capital; the round is being led by Ribbit Capital and the firm is expecting a valuation of approximately Rs 1,300 crore ($203 million) following the deal; Capital Float plans to expand its lending portfolio to consumer lending and will also seek to finance kirana stores. Source
PayU is a largest payments processor in India and it is continuing its moves into lending in that country with...
Recently Morgan Stanley published research sharing that digital payments penetration in India could increase from 5% today to 20% in 2027; the e-commerce market could reach $200 billion with 475 million shoppers by this time; the author delves deep into the Chinese and Indian payments markets, sharing why America could miss out on India’s fintech revolution. Source
An online lending startup with a unique concept has raised $500,000 in seed funding; CreditMate seeks to offer online loans for bikes and scooters in India; the company has partnered with 25 dealers in Mumbai and the process works similar to an auto loan; borrowers can identify the bike of their choice and work with the dealer for purchase and loan approval. Source
Credy was founded in 2016 and has been gaining some ground in India's P2P lending market; the firm is emerging from the Y Combinator Winter 2017 program and seeks to capitalize on two factors supporting the growth of P2P in India: 1) the use of the Aadhaar ID system and 2) the country's demonetization which eliminated 85% of the country's currency and shifted the economy towards a focus on digital transactions; using digital IDs and a technology platform for underwriting and instant approvals will allow the firm to capitalize on a $50 billion personal lending market; the firm's average loan size varies from $500 to $1,000 with repayment terms up to nine months; led by former Goldman Sachs bankers, the P2P platform has already processed approximately $3 million in loans. Source
Consumer point of sale lender, Finomena, owns India’s most downloaded fintech app and they hope to continue gaining customers in this emerging market; led by Riddhi Mittal, formerly of Microsoft, and Abhishek Garg, a private equity investor, the company has exploded serving millennials who have little or no credit; they focus on extending credit for electronics, laptops, smartphones and furniture, which they view as good and productive categories for loans; the company has also pioneered flexible monthly installments in India and are looking to raise a Series A round soon. Source
India's fintech market is growing with a number of socioeconomic factors driving innovation; in 2016 over $1.6 billion was invested in India's fintech industry; the CEO and founder of India's Rubique highlights three ways the Indian lending space is being disrupted, including insight on blockchain, marketplace lending and robo advisory services. Source