India: A Fintech Powerhouse
India stands at the forefront of financial technology adoption, boasting an impressive 87% adoption rate—significantly higher than the global average of 64%. The Covid-19 pandemic has acted as a catalyst, propelling the growth of the fintech sector and transforming the payment ecosystem in a seamless manner.
Rapid Growth in Funding
According to central government data, equity funding in Indian fintech has surged at a compound annual growth rate (CAGR) of 26% over the past four years, with an accelerated pace observed from 2020 onwards. In 2021 alone, the fintech sector attracted a staggering $9.9 billion in funding, with the payments segment capturing 53% of this investment. The rise of fintech has also birthed 23 unicorns in the country, showcasing the immense potential and innovation within this sector.
Women Entrepreneurs Breaking Barriers
Amidst this booming landscape, women entrepreneurs are carving out their space, challenging the traditional male-dominated narrative. These trailblazers are revolutionizing the financial ecosystem through technology and innovation. Mint spoke with three influential women who are making significant strides in the Indian fintech sector.
Hardika Shah, Founder of Kinara Capital
Hardika Shah is the visionary behind Kinara Capital, a fintech firm dedicated to providing collateral-free business loans to small entrepreneurs within a mere two days. Shah’s inspiration to start a non-banking financial firm stemmed from her mother, who faced numerous challenges in accessing formal financing for her small businesses.
"My mother always had entrepreneurial leanings and ran a couple of small businesses while I was growing up, and I remember these being the same issues she had faced," Shah shared. After years of working on multi-million technology projects in the US, she returned to India, driven by a desire to address the financial barriers faced by small business owners.
Kinara Capital began as a modest three-person operation in an apartment and has since grown to a workforce of over 1,600. The company reported a net interest income of ₹161 crore and a profit of ₹15 crore in the latest fiscal year. Notably, Kinara has allocated ₹400 crore for its HerVikas program, which offers discounted business loans specifically for women entrepreneurs, disbursing over ₹414 crore across more than 4,305 loans since FY20.
Shah emphasizes the importance of technology in enhancing financial service accessibility, particularly in rural areas. "The rapid adoption of tech has enabled people to access financial services without the need for physically visiting a financial service provider," she explained. This shift has improved customer onboarding and risk assessment, allowing Kinara to provide quick and efficient services.
Swati Bhargava, Co-Founder of CashKaro/EarnKaro
Swati Bhargava’s journey began in Ambala, where her academic prowess earned her scholarships to study in Singapore and at the London School of Economics. After a successful stint as an investment banker at Goldman Sachs, she and her husband Rohan Bhargava ventured into entrepreneurship, inspired by the cashback culture prevalent in the UK.
In 2013, they launched CashKaro, introducing India to the concept of cashback. "We realized that logistics and payments were relatively solved problems, but customer acquisition wasn’t," Bhargava noted. CashKaro has since evolved from a small team to a robust workforce of 407, generating sales of approximately ₹5,000 crore for its partners.
In addition to CashKaro, Bhargava launched EarnKaro, a deal-sharing platform that has become a significant traffic generator for e-commerce. "We have a CashKaro store network in tier-3 cities and small villages, where we teach kirana store owners how to use CashKaro," she explained. This initiative has empowered local businesses and increased their incomes.
Puja Srivastava, Co-Founder of Spocto Solutions Pvt Limited
Puja Srivastava, along with her husband Sumeet, founded Spocto in 2017 after gaining extensive experience in the US. Spocto is a fintech startup that enables financial institutions to assess customer risk profiles and monitor portfolios in real-time, streamlining loan collection processes.
With a revenue of ₹57 crore, Spocto was acquired by Yubi last year, solidifying its position in the fintech landscape. Srivastava highlights the unique perspectives women bring to the fintech industry, stating, "Women have been at the forefront of making companies like Zopa, InnoPlay, and Paytm profitable." However, she also points out that the sector needs more diversity, as women currently represent less than one-third of the total workforce in fintech.
The Future of Fintech in India
The stories of Hardika Shah, Swati Bhargava, and Puja Srivastava illustrate the transformative power of women in the fintech sector. As India continues to embrace financial technology, the contributions of these trailblazers are paving the way for a more inclusive and innovative financial ecosystem. Their journeys not only inspire future generations of entrepreneurs but also highlight the importance of diversity in driving growth and innovation in the fintech space.
With the ongoing evolution of technology and the increasing focus on financial inclusion, the future of fintech in India looks promising, with women leading the charge toward a more equitable financial landscape.