Top 12 Indian Fintech Startups Making Waves in Finance Sector

Technology is, without a doubt, boosting every area of company planning. How could the finance business be unaffected by it? The financial system has undoubtedly improved significantly. Our lives are made easier by this combination of finance and technology.

FinTech, or Financial Technology, combines technology with money.

All cellphones now have mobile banking loaded, allowing us to conduct all of our banking operations from anywhere.

The impact of fintech startups has been significant on the economy. It also brought about fundamental changes in how payments are made. The payment system has transformed the way we do business. These top FinTech companies in India are making waves in the finance industry and reaching out to different markets with unique financial services.

Top 12 FinTech Startups In India

1. Lendingkart – Easy business loans

Lendingkart is one of India’s most popular fintech startups. It was founded by Harshvardhan Lunia and Mukul Singh in 2014. Lendingkart offers capital loans to small- and medium-sized businesses in the amount of Rs. From Rs.50,000 up to Rs. 35 Lakhs.

The loans are issued promptly and do not require collateral (security provided as a guarantee of loan repayment).

The objective of Lendingkart is to provide capital finance so that entrepreneurs may focus on their enterprises rather than worrying about cash flow. Lendingkart was named to the 2018 KPMG Fintech 100 list.

The company raised 76 million dollars in February 2018. To date, it has raised a total of $257.5 million. Lendingkart plans to expand its operations to 12,000 cities.

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2. MoneyTap – Personal Loan & Credit Line App

MoneyTap offers an app-based credit line. Anuj Kacker and Kunal Verma founded the company in 2015. MoneyTap offers low to medium interest rates on cash loans, as well as EMIs and fast cash loans. The app can be accessed with a smartphone and PAN.

You may check your loan eligibility limit in 15 minutes. The loan application process is fully paperless and very quick. The best thing about interest rates is that they only effect the amount you can borrow, not the total amount you can borrow.

MoneyTap only works with RBI-regulated and controlled Indian financial institutions. It examines customer information to establish creditworthiness and sets the credit limit.

In two funding rounds, the company has raised a total of $40.3 million. Prime Venture Partners, MegaDelta Capital, and RTP Global are among the company’s investors.

3. Instamojo – Business App for MSMEs in India

Sampad Swain and Akash Gehani founded Instamojo in September 2012. Instamojo does not charge fees and offers free online shopping. To help grow your business, you can ship products, get loans, and many other services.

Instamojo allows startups and microbusinesses to immediately build, promote, manage, and grow their company.

We provide a number of services via mobile and web platforms, including online payments, logistics, credit, and financing, as well as a variety of other services.

For business growth, Instamojo gives customised business tools and recommendations. MojoCapital is a Mojojo product that lets you distribute short-term credit loans under Rs 2,000,000.

To date, Instamojo has raised $423.2 million in funding.

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4. Razorpay – Accept Digital Payments & Track Sales

Razorpay is a payment platform for India. It has become a key payment option for businesses. Razorpay was founded in 2014 by Harshil Mathur and Shashank Kumar.

Through a single platform, businesses can manage their marketplace. It’s a payment system that accepts credit cards, debit cards, net banking, UPI, and popular wallets like Airtel Money, FreeCharge, JioMoney, Mobikwik, Ola Money, and PayZapp.

Other services offered by Razorpay include Razorpay X, Razorpay Capital, and Razorpay Capital. It is one of the leading fintech firms.

Throughout seven funding rounds, the company has raised a total of $366.6 million. Tiger Global Management, Ribbit Capital, Matrix Partners India, and GIC are among the 29 investors.

5. Paytm – UPI, Money Transfer, Recharge, Bill Payment

Vijay Shekhar Sharma founded Paytm which is owned by One97 Communications. Paytm has been authorized by the RBI. Paytm has many partners, including Uber, BookMyShow, and Foodpanda. Softbank, Ant Financial, and SAIF Partners are just a few of the investors.

Paytm Insurance, a wholly-owned subsidiary of One97 Communications Ltd. (OCL), has been given a brokerage license by the IRDAI.

The phrase “Paytm Kro” is well-known. This slogan is widely used in India. Alibaba Group, SAIF Partners, and Art Financial are among the investors in Paytm. Paytm is the most popular mobile commerce platform in India. It began by providing mobile recharge and utility bill payment services.

The in-store payment covers grocery and fruit stores, vegetable stores, restaurants, tolls, and pharmacies.

Paytm was founded in 2009 by Vijay Shekhar Sharma. It is one of India’s most valuable unicorn firms. Paytm today has over 350 million customers and has a market capitalization of $4.4 billion.

6. Policybazaar – Compare & Buy Insurance

Policybazaar.com is India’s largest and most trusted insurance broker. It also ranks among the best fintech players in the world. Initially, Policybazar was started to provide price information on insurance and related programs.

Subsequently, Policybazar began selling insurance online. It also makes money from advertising and marketing. PolicyBazaar was founded in Gurugram by Alok Bansal, Avaneesh Nirjar, and Yashish Dahiya in June 2008. Users can compare various insurance policies offered by various financial companies. The platform has handled over 3 lakh transactions.

In 2018, KPMG named the website one of the top 100 most innovative global fintech companies.

To date, Policybazar has raised $257.7 million in investment. Policybazar is currently backed by 22 investors. Tencent, Cyrus Poonawala Froup, Falcon Edge Capital, White Oak Global Advisers, and other notable firms have invited the startup.

7. Pine Labs for Business: ePOS,UPI, EMI

Pine Labs was founded by Rajul Garg and Lokvir Kapoor in 1998. Pine Labs is a merchant platform and also develops Fintech software.

Immediate EMI, Loyalty Solutions, Instant Discounts, Cashback Programs, Dynamic Currency Conversion, PaybyPoints, eWallet, Targeted Promotions, and a variety of other services are available. It accepts NFC and last-mile payments. The company was designated one of India’s top 10 most-funded companies by CNB in 2019.

The business develops point-of-sale software. It has a 10% market share in India and approximately 300,000 PoS. Pine Labs technology is used by over 100,000 Indian merchants. The Middle East, Southeast Asia, and the Middle East are all served by the company. To date, Pine Labs has raised $423.2 million in funding. Pine Labs is backed by companies like Mastercard, Duro Capital, Baron Capital, and Marshall Wace.

8. ZestMoney – Shopping on EMI without credit card

ZestMoney is an Indian startup founded by Ashish Anantharaman & Lizzie Chapman. It is one of the most innovative Fintech platforms. ZestMoney uses artificial intelligence with payment technology and mobile banking. It provides instant loans and EMI services.

The World Economic Forum recognized ZestMoney the 2020 Technological Leader for its unique technology and efforts. Zest Money is one of India’s leading fintech firms. ZestMoney has received $68.4 million in investment to date.

International investors such as MI, Ribbit, Naspers, and Flourish Capital backed ZestMoney.

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9. PhonePe – UPI, Recharge, Investment, Insurance

PhonePe was founded by Sameer Nigam and Rahul Chari in 2015. The mobile payment platform is owned by Flipkart. PhonePe is among the top fintech companies in India with more than 280 million users.

In April 2021, the app hid over 1.3 billion transactions. Digital payments, financial services, advertising merchant payments, investments, and other services are available through the UPI-based payment platform. Eleven other languages are also available. Flipkart and Walmart are its backers.

To date, PhonePe has managed to raise $1.2 billion.

10. CRED – Credit card bills, Rewards, Free credit score

CRED is a unicorn Indian startup founded by Kunal Shah in 2018. It provides credit card management and payment services.

CRED offers credit card payments, rewards such as offers and discounts on shopping, health services, and other websites, rent payments, and flexible quick short-term credit lines with low interest rates.

Throughout six funding rounds, the company has raised a total of $471 million. It has the support of 28 investors. CRED was recently funded by Dragoneer Investment Group, Falcon Edge Capital, RTP Global, Tiger Global Management, Greenoaks Capital, and Sofina.

11. Shiksha Finance

Shiksha Finance is one of the largest education banking moneylenders. It was founded by Jacob Abraham in 2014. Shiksha Foundation provides loans in the education sector for asset building, property purchases, educational loans, and building construction.

Shiksha Foundation provides financial assistance to low-income students and schools in need of finances to develop their facilities, classrooms, and other facilities. The company has lent 84653 study loans thus far.

Shiksha Finance has raised $29 million in total to date. Companies such as Aspada, Northern Arc, Zephyr Management, and Triodos Investment Management have contributed to the Shiksha Foundation.

12. Capital Float

Gaurav Hinduja and Sashank Rishikhasringa founded the company, Capital Float. It was formerly known as Zen Lefin Private Limited.

Capital Float is one of the country’s largest digital lenders. Over 2 million customers have received loans totaling over 9000 crores. Small and medium-sized businesses can get financing quickly.

The company has raised $154 million in total investment. Amazon, Rabbit Capital, Triodos Investment Management, and SAIF Partners are among the investors.

Top 12 FinTech Startups In India – Comparision

*This table should not be interpreted as a ranking of any one company. The information provided is from July 2021. Because the market is dynamic, data may change.

Sr. No. FinTech company name Founded In Founded By Total funding raised Services and products
1. Lendingkart 2014 Harshvardhan Lunia and Mukul Singh $ 257.5 million capital loans to small and medium-sized businesses
2. MoneyTap 2015 Anuj Kacker and Kunal Verma $ 40.3 million cash loans, EMIs
3. Instamojo 2012 Sampad Swain and Akash Gehani $ 423.2 million online payments, logistics, credit, and finance
4. Razorpay 2014 Harshil Mathur and Shashank Kumar $ 336.6 million credit card payment, online transactions, credit card, debit card, net banking, UPI and popular wallets
5. Paytm 2009 Vijay Shekhar Sharma $4.4 billion Online transaction, e-commerce, retail, and utility bills payments
6. Policybazar 2008 Alok Bansal and Yashish Dahiya $ 257.7 million online insurance-related services
7. Pine Labs 1998 Rajul Garg and Lokvir Kapoor $ 423.2 million Instant EMI, Loyalty Solutions, Instant Discounts, Cashback Programs, Dynamic Currency Conversion, PaybyPoints, eWallet, Targeted Promotions
8. Zest Money 2015 Ashish Anantharaman and Lizzie Chapman $ 68.4 million  payment technology and mobile banking
9. PhonePe 2015 Sameer Nigam and Rahul Chari $1.2 billion Digital payments, Financial services, Advertising Merchant payments, investments
10. CRED 2018 Kunal Shah $ 471 million credit card payments, house rent payments, short-term credit lines at low interest
11. Shiksha Foundation 2014 Jacob Abraham $ 29 million loans in the education sector for asset building, property purchases, educational loans, building construction
12. Capital Float 2013 Gaurav Hinduja and Sashank Rishikhasringa $ 154 million Digital loans

Final Thoughts – Key Takeaway Points

This list of the best fintech startups in India will help you comprehend the economic developments and find the best fintech companies in India.

Fintech has made a positive impact on the banking system. In 2021, India will complete 30 years of economic reforms that began in 1991 under former Finance Minister Dr. Manmohan Singh.

Since then, India has experienced significant economic development. The Indian market has attracted foreign corporations and banks. Foreign bodies have provided the Indian markets with great things, from ATMs to Fintech.

Frequently Asked Questions

What does a Fintech company do?

The term “fintech” refers to financial technology. Fintech companies use specialized software to provide better banking and financial services to companies, businesses, and clients. They provide a variety of services, including digital payments, personal finance, management, peer-to-peer lending, and more.

How many Fintech companies are there in India? 

In India, there are approximately 2565 Fintech companies, which is one of the biggest numbers in the world.

Why is Fintech the future in India?

Fintech companies are helping consumers with their finances. Integrated financial services, together with advances in artificial intelligence, software, and algorithms, are making employment easier than ever before. Fintech’s development will be accelerated as technology advances.

Is fintech regulated in India?

The Reserve Bank of India regulates all fintech companies in India. The laws and regulations governing Fintech companies in India have been issued by the RBI.

Are investors betting on Fintech? 

Undoubtedly, these businesses are backed by investors and venture capitalists. Fintech startups are receiving millions of dollars from global investors such as Tiger Global Management, Rabbit Capital, and Falcon Edge Capital. Leading Fintech firms in India, such as Paytm and Phonepe, have raised billions of dollars.

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