News Corp VCCircle, Indian publisher of start-up and private equity news, data and information, has today shared News Corp VCCEdge India FinServ Insights related to funding in India’s Fintech sector, with a focus on segments of online personal finance and lending.
News Corp VCCEdge is the financial research platform of News Corp VCCircle which offers information on M&As, private equity and venture capital transactions including deal terms, structures, deal amounts and valuations.
Rising Investor Appetite for Fintech• Fintech companies, which are at the intersection of financial services and IT, witnessed a 167% increase in deal value in 2015 to $617 million as against $231 million in 2014. Deal volumes saw a rise of 82% from 38 in 2014 to 69 in 2015.
• In 2016 so far, fintech companies have raised $186 million across 24 deals. Since 2012, the fintech sector has attracted $1,194 million across 181 deals.
• H1 CY2016 witnessed 23 deals in the fintech sector with deal value worth $184 million. This indicates a fall in deal value from $255 million across 34 deals in H1 CY2015.
• 73 fintech companies received funding to the tune of $803 million in CY2015-2016YTD.
Online Platforms offering Wealth Management and Lending/ Credit services attract Investor Interest• The year 2015 saw such online platforms attract investor funding to the tune of $344 million as against $41 million in 2014. There were 31 deals recorded – a rise of 182% when compared to just 11 deals in 2014
• In 2016 so far, there have been 13 deals amounting to $81 million. Since 2012, such portals have attracted over $500 million investor funding spread across 66 deals.
Top Deal in the Fintech Sector (2015-16)• The Private Equity deal of $200 million invested by General Atlantic Pvt. Ltd. and Temasek Holdings Advisors India Pvt. Ltd. in IndiaIdeas.com which owns payment services portal Billdesk.
Top Deal in the Online Personal Finance Segment (2015-16)• The Venture Capital investment of $59.9 million made by Walden International India, Sequoia Capital India Growth Fund II, Eight Roads Ventures, Amazon.com Inc. and Mousse Partners Ltd. in the Chennai based A and A Dukaan Financial Services Pvt. Ltd. which owns the online platform BankBazaar.com.
Speaking on the deals data, Ms. Nita Kapoor Head - India, New Ventures, News Corp and CEO, News Corp VCCircle, said, “The News Corp VCCEdge deals data is indicative of the on-going trend of ‘Impact Investing’ adopted by the PE/VC/Angel investor community in funding those ventures with maximum potential of disruption or bringing about a tangible change in the way people get access to loans, effect payments to managing their personal finances. While the degree of adoption and regulatory stipulations may pose hurdles, the growth we see in investments in the fintech space show us that there is a strong investor appetite for companies with unique business models that address the inefficiency of legacy systems and the mechanism to disburse credit.”
Speaking on the growth in funding online financial services ventures, Manish Shah, Co-Founder and CEO of News Corp owned personal finance advisory platform BigDecisions.com observed, “Making financial services digitally available throughout the consumer decision making journey and across multiple devices is an imperative in today’s smartphone toting India. It serves as a means to influence the financial behaviour of prospective users which in turn make mechanisms more efficient.”
