Interesting funding alert- A fintech startup announced a funding of USD 10 million
The fintech industry is growing at a rapid rate. With the lockdown and everything shifted to the online and digital medium, this sector of the economy has seen a huge adoption and an overall rise. It has witnessed a large adoption and is doing amazingly well.
Let us talk about the fintech industry. First of all, if we explain what a fintech industry is. It is finance + technology. Fintech industry refers to the implementation of technology and innovation in the sector of finance with the aim to give competition to the traditional and old financial methods.
The implementation and the use of technology is done with the motive and the aim to make a change and improvement in the financial activities that are taking place in the economy. Gone are the times of pen and paper, now is the time of technology and change.
Coming to the technologies used in the fintech sector, they are as follows-
Artificial intelligence helps in providing of insights into the spending habits of the customer, thus giving a chance, an opportunity to the financial institutions to have a better understanding of their clients. Nowadays Chatbots are being used by banks for customer service, which in itself is a big change.
Big Data helps in prediction of the investments which will be made by the clients and changes in the market. This prediction will assist the financial companies in the creation of new strategies and portfolios, analyzing the spending habits of the customer, detecting the frauds and thus improving it, and in the creation of the marketing strategies.
Robotic Process Automation is the type of technology that specializes in the mechanization of repetitive tasks. We all know that doing the same tasks, again and again, can become boring and increase the chances of error. So just imagine that there is a technology out there that helps in automating such tasks, would be such a relief.
Blockchain is an upcoming technology field in the finance sector. It is responsible for driving many important investments from companies. It has a decentralized nature, which makes sure that there is no need for any third party to carry out a transaction.
Talking about the fintech industry of our country, it has the highest adoption rate around the world. Our country is among the fastest-growing Fintech markets in the world. The value of transactions taking place in the fintech market is expected to grow from USD 66 billion in the year 2019 to USD 138 billion in the year 2023, growing at a CAGR of 20%.
Talking about the funding of the fintech industry, it has cumulative funding of USD 27.6 billion. The fintech sector of our country has more than 1860 startups and as of December 2021, our country has more than 17 fintech startups that have gained the status of “Unicorn Startups”.
Some of the big names in the Indian fintech industry are PhonePe, Instamojo, MobiKwik, BillDesk, and many others.
Let us now have a discussion on the funding of a fintech startup that has taken place recently.
Announcement of funding of a fintech startup
The fintech startup, Kaleidofin, has raised funds worth USD 10 million, as announced on January 12, 2022. This round of funding which took place was the Series B round of funding and was carried on by the Michael and Susan Dell Foundation. The other members who participated in this round of funding were Flourish Ventures, Oikocredit, Omidyar Network, Blume Ventures, and Bharat Fund.
The startup plans to use the funds raised in the development of technology, risk management, and data science capabilities. After this round of funding, the total funds raised by the startup have increased to USD 18 million.
Previous to this round of funding, the startup in the year 2019 and in the month of December had raised USD 5 million in its Series A round of funding. That round of funding saw the investments by Flourish Ventures and Omidyar Network India.
About the fintech startup that has announced its funding
The fintech startup, Kaleidofin, was founded in the year 2018 by Puneet Gupta and Sucharita Mukherjee and has its headquarters in Chennai. The startup describes itself as a wealth-tech platform. The name of the startup has received its inspiration from the power of financial solutions to enable beautiful possibilities of future life for each customer.
The startup is of a belief that each of us experiences life through a myriad of lenses and experiences. Nobody is same, each one of us is different from the other and therefore one size does not fit all.
The mission of the startup is to push the customers towards meeting their real-life goals by opening their doors to intuitive and tailored financial solutions. The startup offers a goal-based solution that-
Plug the right financial service at the right stage of the lives of the customer.
Create ML-powered customer personas.
Employ proprietary suitability engines for each persona
Deliver unbeaten experience to customers and platform partners
The products offered by the startup are-
KaleidoGoals, which is a goal-based savings solution
KiScore, which is an automated credit health checking platform, is supervised and machine-learning-based for informal sectors.
KaleidoCredit, which is used as a credit as a platform service for lending and debt capital market use cases
KaleidoPay, which is a suite consisting of inclusive payment solutions
The startup claims that more than one million customers across the country use its platform for transactions. It has a footprint which is localized and accessible across 230 districts and 14 states in semi-urban and rural India.
The startup definitely has something different to offer. We wish the startup a bit of good luck and a shining and successful future ahead.
Edited and proofread by Ashlyn