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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The three-year-old fintech is poised to realize CEO Ashneer Grover’s vision of banking. But many questions remain.
Editor's note: Here's a young fintech startup—a little over three years old—that is soon to be one half of an honest to goodness bank. The company, which has in just a couple of years of operations built a name for itself by getting small businesses across India to accept payments using QR codes and UPI, has for some time now been pushing hard on building out its lending business. In fiscal year 2020-21, it disbursed about Rs 1,600 crore in loans, on the back of partnerships with non-bank and P2P lenders. But for Ashneer Grover, co-founder and CEO of the Delhi-based startup, this was never going to be enough—the path to building a large loan book for him lay in lowering the cost of funds as much as possible, which ultimately means a bank on the back-end. Getting a banking licence, though, is no small feat in India. BharatPe has also tried and failed to get a non-banking financial company, or NBFC, licence, which is relatively easier. So, the company considered instead investing in an existing bank, also a rather audacious goal. …
The three-year-old fintech is poised to realize CEO Ashneer Grover’s vision of banking. But many questions remain.
Editor's note: Here's a young fintech startup—a little over three years old—that is soon to be one half of an honest to goodness bank. The company, which has in just a couple of years of operations built a name for itself by getting small businesses across India to accept payments using QR codes and UPI, has for some time now been pushing hard on building out its lending business. In fiscal year 2020-21, it disbursed about Rs 1,600 crore in loans, on the back of partnerships with non-bank and P2P lenders. But for Ashneer Grover, co-founder and CEO of the Delhi-based startup, this was never going to be enough—the path to building a large loan book for him lay in lowering the cost of funds as much as possible, which ultimately means a bank on the back-end. Getting a banking licence, though, is no small feat in India. BharatPe has also tried and failed to get a non-banking financial company, or NBFC, licence, which is relatively easier. So, the company considered instead investing in an existing bank, also a rather audacious goal. …
The Rs 250 SIP was launched last year by the former SEBI chairperson with one clear goal: financial inclusion. More than a year later, the much-hyped scheme doesn’t seem to have caught on with MF investors.
Its biggest banking customer, Unity Small Finance Bank, has decided to part ways. The departure comes at a time when the fintech infrastructure startup has been trying to become a full-stack banking software provider.
Vijay Shekhar Sharma’s fintech has reported its first operationally profitable quarter. However, he will need to wait to win back the regulator’s trust for Paytm to scale further.
The Rs 250 SIP was launched last year by the former SEBI chairperson with one clear goal: financial inclusion. More than a year later, the much-hyped scheme doesn’t seem to have caught on with MF investors.
Its biggest banking customer, Unity Small Finance Bank, has decided to part ways. The departure comes at a time when the fintech infrastructure startup has been trying to become a full-stack banking software provider.
Vijay Shekhar Sharma’s fintech has reported its first operationally profitable quarter. However, he will need to wait to win back the regulator’s trust for Paytm to scale further.
