News Corp VCCircle, Indian publisher of startup and private equity news, data and information, released 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, reported BWDisrupt. News Corp VCCEdge, the financial research platform of News Corp VCCircle, offers information on M&As, private equity and venture capital transactions including deal terms, structures, deal amounts and valuations.
“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,” Nita Kapoor observed, HBS alum and Head – India, New Ventures, News Corp and CEO, News Corp VCCircle. “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.”
The top private equity deal deal during 2015-16 was reported by BWDisrupt as the $200 million invested by General Atlantic Pvt. Ltd. and Temasek Holdings Advisors India Pvt. Ltd. in IndiaIdeas.com which owns payment services portal Billdesk.
The article also highlighted key elements of the report, including the spike in investor interest in Indian 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.
In June, KPMG and NASSCOM 10,000 Startups released the report Fintech in India, targeting key elements that are “creating transformational waves across the financial ecosystem in India” and have seen extensive usage across financial service institutions.