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Fintech Funding

FinTech funding globally dropped to $6.1 billion in Q1 2020, with India attracting $330 million compared to China's $270 million. Key drivers of India's FinTech revolution include unmet financial needs, government policies promoting innovation, and rising digital infrastructure. The COVID-19 pandemic has impacted FinTech sectors like payments, lending, and insurtech in both negative and positive ways. Strategies are needed to navigate the current environment.

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54 views3 pages

Fintech Funding

FinTech funding globally dropped to $6.1 billion in Q1 2020, with India attracting $330 million compared to China's $270 million. Key drivers of India's FinTech revolution include unmet financial needs, government policies promoting innovation, and rising digital infrastructure. The COVID-19 pandemic has impacted FinTech sectors like payments, lending, and insurtech in both negative and positive ways. Strategies are needed to navigate the current environment.

Uploaded by

Darshit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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FINTECH

FinTech Funding
- Venture capital-backed investments in the fintech sector have dropped to $6.1 billion across 404 deals
in the first quarter of the calendar year 2020 globally.
- Fintech startups in India attracted VC investments of $330 million in Q1 2020, compared with China’s
$270 million
- In February, BharatPe, a New Delhi-based startup, helping merchants accept digital payments for the
first time and providing them access to working capital, had raised $75 million in a new round. In
March, fintech startups Veritas Finance and Bengaluru-based payments technology firm Juspay had
raised $46.99 million and $21.6 million, respectively. In January, MoneyTap, a consumer lending firm,
had raised $70.26 million in a Series B round.
Key drivers of India’s FinTech revolution
- Unmet financial needs
- Changing consumer demographics
- Government policies and regulations
- Building the digital infrastructure
- Promoting innovation and competition
- Rising collaboration

Impacts of COVID-19 on Fintech

 Payments
- Payment volume declined in airlines, tourism, hospitality, hotels, entertainment, eCommerce (non-
essentials) and restaurants and rose in online grocery stores and pharmacies, OTT, EdTechs, online gaming,
recharges and utility/bill.
- Domestic remittances have hit badly due to return of migrant workers to their homes.
- Direct benefit transfer of 1.7 lakh crore package increased volume of AePS transactions.
- PoS players already affected with Zero MDR policy continues to suffer.
 Lending
- No new customers acquired or disbursements made.
- Moratorium has negatively impacted as borrowers do not repay their loan instalments to companies but
the companies have to repay their EMIs to their lenders (banks/financial institutions) as the institutions are
reluctant on passing the benefits of moratorium to companies.
- Raising further capital will be challenging.
- Companies with high bank balance will sail through while new small players will either get shut down or
get acquired.
 Insure Tech and Wealth Tech
- Rise in digital payments as new and renewal policy payments are made online.
- Insurance products providing coverage to COVID-19 patients are expected to witness a significant rise in
demand owing to Atmanirbhar Bharat mission.
- Market volatility have enabled digital discount brokers to acquire new customers.
- Wealth advisors have the opportunity to help customers and independent financial advisers navigate
market uncertainties.

Possible strategies to explore

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