The fintech industry is rising. It is one of the very few industries which had been successful during the pandemic and the lockdown period. This industry primarily works on the online mode, hence trying to bring the country to turn digital. This startups brings in a new mode of digital payments which allows the users and the customers to adapt to more friendly and easy ways to move ahead and many times at ease of sitting at their homes.
This sector has been very useful during the period when people were stuck at their homes. India’s fintech industry is growing at a rapid rate. The USD 31 billion industry is expected to reach USD 84 billion by 2025, growing at a CAGR of 22%.
The investors have their eyes on the startups belonging to this industrial sector and are willing to invest heavy funds in this industry. With the economy opening up and businesses going back on track, news of funding, acquisitions, mergers and takeovers are coming up. The economy is going back in action which has been quiet and stagnant for a very long time.
Two startup company have come up in the news because of the acquisitions- yBANK and Clear.
Company Clear which was formally called as Cleartax has acquired a startup yBANQ. The deal has been made in cash and equity. yBANK is a corporate payments startup and Clear is a tax filing and compliance company. The announcement of this purchase has been made on July 07, 2021. After this acquisition, Clear, which had its focus on providing software services for the companies and the enterprises, will now enter the B2B market and credit market.
yBANQ has a team of 10 members which is spread across product and design thinking and will now come under Clear. The startup will also engage itself in connecting the customers of Clear to its business partners, vendors, customers, distributors and accountants on a single platform.
Founded in 2019 by Abhishek Ayyagari, ganesh Mallya, and Ahamed Shah Wahidullah, yBANK provides a fintech platform that is engaged in providing assistance to the business by making different processes like collections, payouts, and reconciliations easy. In 2019, it received funding of USD 1.5 million in its seed round. It has worked with startups like PayPal, Citrus Payments, andPayU.
Clear is a Benagaluru based startup which operates in tax filing and compliance issues. It has over 5 million individuals, 600000 small and medium sized businesses and 2000 enterprises, which are using the platform of the company. It is also expected to raise USD 100 million from Tiger Globals. The company has previously raised USD 65 million from Composite Capital, Sequoia Capital, and Elevation Capital. The company has claimed to process 10% of business invoices in the country, which are more than worth USD 300 billion and it is hoping to grow and reach more heights with yBANK.
The CEO of Capital Archit Gupta said that yBANK is a seed level startup. With its current position, the startup hsa built very strong products in the payment sector at a very short span of time. The company hopes that it will add more pace to the efforts of the company in entering the B2B sector and the credit space.
The acquisition seems to be bright and is hopeful of bringing in many new innovations and products which will make the customers at ease and will take the sector to great heights. We just wish these companies luck and are waiting for new introductions by them in the market.
Edited by Aishwarya Ingle