An innovative fintech startup announced a funding of USD 6 million
The two industries which are seeing a huge rise are edtech and fintech.
Let us talk about the fintech industry and the startups working in that industry. Finance + technology= fintech. Fintech stands for financial technology, which means the utilization of advanced technology and complex innovation to bring a change and improvement in the old and traditional finance domain of the economy.
By this, they bring an improvement in the use and delivery of services and products to the customers. The basic function of financial technology is to help businesses, companies, and customers better manage their financial operations, processes, and hence lives by making the use of special software and algorithms that can be used on computers and smartphones.
The four basic categories of the fintech sector are digital lending, payments, blockchains, and digital wealth management. Some of the business models of the fintech sector which have become a favorite of the investors nowadays are- Insurtech, Digital Share Broker, Cross-border Payments, RegTech, Digital Operating Platform, Online Payment Processing, Savings and Budgeting Apps, Peer-to-Peer lending solutions, and fraud analysis software.
Some of the trends which have been seen in the fintech industry in the year 2021 were Bigger and Bolder deals, deals happening in diverse locations, the Inclusion of big tech giants, big fintech investing in small startups, a Greater focus on cybersecurity products, Financial services re-building, and continued partnerships.
Now if we talk about the fintech sector of the country, the value of this sector is predicted to reach USD 150 billion by the year 2025, which will be a good increase from USD 50-60 billion in FY 2020. The transaction value is expected to increase to USD 138 billion in the year 2023, growing at a CAGR of 20% from USD 66 billion in the year 2019.
Let us now talk about the funding of a fintech startup that has taken place. Previously, a neo-banking startup Niyo had announced a funding of USD 100 million on February 24, 2022. That round of funding was led by Accel and Light rock India. Last year FamPay had announced funding worth USD 38 million. That round of funding was carried on by Elevation Capital.
Announcement of funding of a fintech startup
The fintech startup, Junio has raised funds worth USD 6 million as announced on March 04, 2022. This round of funding that has taken place and we are discussing was led by NB Ventures, which is based in UAE. The significant investor besides NB Ventures who showed great participation in this round of funding was the Rajiv Dadlani Group.
The startup is planning to make use of the funds raised in the expansion of its team, introducing and rolling out new features of the products, and increasing the acquisition of the customer through its new initiatives. Before this round of funding, last year, the startup had announced raising USD 2 million in a round of funding. That round of funding was the seed round of funding and saw the participation of the angel investors, who were the founder of CRED Kunal Shah, co-founder of Policybazaar Yashish Dahiya, and venture capitalists. Even the family offices which are led by Rajiv Dadlani Group participated in that round of funding.
About the fintech startup that has announced its funding
The fintech startup, Junio was founded in 2020 by Nath and Ankit Gera, who were previously holding executive positions in Paytm, and has its headquarters in New Delhi. The startup is engaged in offering a child his smart card for all the expenses be it online or offline. With the help of a Junio card, a child can learn how to earn, spend, and save, while his parents can keep an eye on their spending. The process of issuing this card is very simple, no full KYC is done for the physical card.
The card can be instantly topped up and is ready for use by the little one. There is no annual charge for the Junio card. This card cannot be referred to as a debit or a credit card, it is instead a Pocket Money Smart Card which is connected with the application of Junio. Money can be loaded in the Junio app and then a child can use the card for online and offline payments.
The goal of the startup is to bring in discipline and awareness in the children on how to manage money in a fun and practical way. Parents on the other hand have a clear sight of where their kids are spending money and hence can guide them on how to manage the money from an early stage. Currently, the focus customer group of the startup consists of children and teenagers who lie in the group of 10-16 years. The main competition of the startup is FamPay.
About NB Ventures
Founded in the year 2016 by Mr. Neeleshwar Bhatnagar, who is also the Managing Director. NB Ventures is an early-stage venture fund that has the vision to allow and help in the creation of a sustainable ecosystem for the new-age digital startups around the world. The mission of NB Ventures is to invest and provide a platform for new-age digital companies in sectors like Healthcare, Education, Hospitality, Information Technology, and E-Commerce. It has made investments in more than 40 startups and has added tremendous value to the founders by working closely with them, thus raising additional growth capital.
We all know that children of today and the future of tomorrow. We all also realize the importance of financial knowledge in today’s world. The startup is working on these lines. We wish the startup a stroke of good luck and hope it has a bright and prosperous future ahead!