Interesting funding alert- A fintech startup announced funding of USD 25 million
One of the most uprising sectors of the industry is the fintech industry. The COVID 19 lockdown saw the rise and the spread of two industries- the edtech and the fintech. With the whole world under lockdown, technology came of great help in ways that no one could not have ever imagined.
Let us talk about the fintech industry and the startups working in it. Telling from the name fintech industry is finance + technology. This term came up in the 21st century itself. It consists of innovation and modernization so that the traditional methods of finance can be given a tough fight.
With the increase in usage of smartphones, mobile banking, internet services, cryptocurrency, and whatnot, the fintech industry is giving a huge rise to the economy. The key areas where the fintech industry is being used are- insurance, investments, trading, banking services, and risk assessment.
Talking about the fintech industry in our country, India, it is one of the fastest-growing markets in the world. There are more than 2,100 fintech startups working in our country, and out of these more than 67% of the fintech startups have come up in the last 5 years, thus showing how great and amazingly well this industry is doing and growing.
The value of the Indian fintech industry in the year 2020 was between USD 50-60 billion, and according to the predictions made, it will be at USD 150 billion by the year 2025. According to the data released on December 20 by Prequin, which is UK -based, there were 166 fintech investments at the Series A round of funding and amounted to USD 1.67 billion. In the year 2021, the Indian startups had raised USD 36 billion.
Since the last two years, we can see that there is a huge adoption of digital payment systems in our country. One of the major reasons for this is that the traditional payment system of our country has seen huge development and improvement, because of the introduction of new interfaces and payment mechanisms like Unified Payments Interface (UPI), Bharat Interface For Money (BHIM), and many others. Even the government is promoting Digital India and Make in India, which play an important role in increasing the usage of fintech. Even the Reserve Bank of India has tried its best to promote an electronic mode of payments in order to make the Indian economy a cashless one.
Let us now talk about the funding of a fintech startup that has taken place recently.
Announcement of funding of a fintech startup
The fintech startup, Rupifi, has raised funds worth USD 25 million, as announced on January 07, 2022. This round of funding was the Series A round of funding and was led by Bessemer Venture Partners and Tiger Global. The other participants of this round of funding were Better Capital, an early-stage investor based in Silicon Valley, and some of the existing investors. The existing investors were Quona Capital and Ankur Capital.
The startup plans to use the funds raised in building a complete B2B checkout for marketplaces. It is also planning to launch omnichannel mobile-first B2B solutions of payments for merchants, distributors, and sellers. This round of funding is the second investment the startup has received in a period of 9 months. Before this, in March 2021, the startup had raised USD 4.1 million which was led by Quona Capital.
About the fintech startup that has announced its funding
The startup, Rupifi, was launched in the year 2020 by Ankit Singh, Anubhav Jain, and Jawaid Iqbal. The startup is engaged in bringing B2B marketplaces like Flipkart, Wholesale, Retailio, and Fynd together with the financial institutions with the aim to bring in credit for the merchants which will be low-friction. This interaction is bought at the stage of point of sale.
The features provided by the startup are-
Embedded Product with configurable APIs
Digital Process with flexibility for assisted flow
Multi-Channel Repayments like cash, cheque, NACH, UPI, and many others
Complete Onboarding and servicing support
Multi-lender Connect with the best pricing
No-EMI, Daily Interest Product for maximum flexibility
One of the offerings of the startup is a commercial card which has its focus on SMEs. This card has the aim to provide flexibility to manage the expenses without further cost for shorter time periods. The startup currently has more than 50,000 SME partners.
The industries covered by the startup are FMCG, Pharmacy, Fashion, Food, Agriculture, and Electronics. The startup is backed by Quona Capital, Ankur Capital, Better, Cloud Capital, Binny Bansal, the co-founder of Flipkart, Gokul Rajaram of Doordash, Kunal Shah, the founder of CRED, Ramakant Sharma, the co-founder of Livspace, Ashneer Grover, the co-founder of Bharatpe, and Sajid Rehman, the founder of MyAsiaVC. The lending partners of the startup are Muthoot Finance, Dhanvarsha, TVSCredit, Axis Bank, and Great Meera.
The fintech industry is doing great. The startup is bringing something different and innovative to offer. We wish the startup a stroke of good luck and a bright and successful future ahead.
Edited and proofread by Ashlyn