Meet The Most Active Fintech Investors In India

Since 2014, over $26 Bn has been put into the business. From 2021 to the first half of 2023, $14.8 Bn was raised.

From local investors like 3one4 Capital to international giants like Sequoia and Tiger Global, the Indian fintech space has become a good place for LPs to put their money.

By 2030, the fintech market is expected to be worth $2.1 trillion.

The days when banks were the only ones who could help with money are over. Hundreds of banking and financial services are just a tap away thanks to the huge number of fintech startups.

India has more than 4,200 active fintech startups. Their growth has been linked to the country’s huge tech boom and the fact that more and more people have access to the internet and smartphones.

Because of this, the local fintech industry has grown in size and importance. According to Inc42’s State Of Indian Fintech Report Q2 2023, the Indian fintech industry is expected to reach $2.1 Tn by 2030, growing at a compound annual growth rate (CAGR) of 18% from 2022. This gives you an idea of how big things are.

India’s fintech ecosystem is making a lot of noise, which is a good thing. It has caught the attention of both domestic and international investors, who see a big untapped chance in the great Indian fintech story.

This is clear from the fact that the industry has raised $26 billion since 2014, with $14.8 billion coming in between 2021 and Q2 of 2023. As a result, 22 unicorns have been born in India’s fintech environment, and 33 startups are waiting in line with the label “soonicorn.”

Lendingkart got $24 million in debt funding so far this year, and Indifi got $35 million. These were two of the biggest fintech deals in the quarter that finished in June 2023.

The segment is still the most popular with investors, but it has not been immune to the effects of the funding winter. According to the latest Inc42 report, funding for the segment dropped by more than 57% year-over-year to around $800 million in Q2 2023.

Experts are still optimistic about the future of fintech funding, even after the loss. Given the promise of this growing area, we’ve put together a list of some of the most active fintech investors who have actively supported the growth of fintech in India.

1. 3one4 Capital

TV Mohandas Pai’s boys, Pranav Pai and Siddharth Pai, have a lot to live up to. Their father was the CFO of Infosys and a great investor. After Pranav finished his master’s degree at Stanford University and Siddharth became a qualified accountant, the two brothers went into the world of investing.

The result was that the two started 3one4 Capital in 2015. Since it started, the Bengaluru-based early-stage sector-agnostic venture capital (VC) company has become known for making risky bets and investing in a wide range of fields, including enterprise tech, consumer internet, healthtech, fintech, and others.

But, like other investors, the company has its eyes on India’s growing fintech industry. Siddharth Pai said at the beginning of this year that India would have the most financial innovations and would build for the whole world.

Focused on the same thing, 3one4 Capital has kept adding big names like Jupiter, CheQ, HyperFace, Open, and LoanTap to its fintech holdings.

The investment company says it manages more than $510 million and has raised a total of $1.41 billion so far. Overall, the company is in charge of more than 80 new businesses.

2. Accel

Accel, which is based in the US, was one of the first investors in the world to see a chance in the Indian startup environment. After taking over the $10 million Erasmic Venture Fund, a $10 million early stage fund, the venture capital firm moved into India in 2005. After that, the fund’s name was changed to Accel India.

Since it started doing business in India, it has set up seven funds that have invested in a wide range of fields, including fintech. It was the first investor in a number of fintech startups, including Drip Capital, Samunnati, and Nimbbl.

Last year, the collection of companies owned by Accel India had a market value of more than $100 Bn. Aside from fintech, the VC business has also helped big companies like Flipkart, upGrad, and Jugnoo.

3. Bessemer Ventures Partner

The California-based investment firm backs companies in the seed, early, and growth stages. These startups work in different fields, such as fintech, D2C, and SaaS.

In 2006, it started its first office in Bengaluru, which is in India. Anand Vidur Puri and Vishal Gupta are in charge of the company right now. Since it started, it says it has put money into more than 65 companies in the country, such as BigBasket, Swiggy, Pepper Content, and others.

The VC business has helped a lot of fintech companies so far. Lentra, Rupifi, Innoviti, and Perfios are some of these names.

4. Better Capital 

Better Capital was started by Vaibhav Domkundwar in 2016. It invests in tech startups in their early stages that are focused on fixing big problems, according to the company. Since it began, Better Capital has put money into more than 200 Indian startups, which are now worth more than $7 billion all together.

The company says it has 700 investors and has companies like Darwinbox and Zepto in its portfolio.

The venture capital company has become one of the most common backers of Indian fintech startups. It began making investments in 2017 by giving money to a fintech startup called Khatabook. Since then, it has added some of the biggest fintech companies in the country to its portfolio.

Some of the companies in the firm’s fintech holdings are CRED, Pine Labs, slice, and M2P Fintech.

5. General Atlantic

General Atlantic was one of the first venture capital firms to start investing in India. Its first investment in India was in Wipro in 1993. Since then, it has helped some of India’s biggest tech companies, like Infosys, TCS, and even Reliance Industries.

When the startup boom of the mid-2010s hit the country, General Atlantic got most of the shares in companies like Flipkart, Ola, Swiggy, and Zomato.

In the same way, the global VC firm has invested in Indian fintech companies like BharatPe, Paytm, CRED, Groww, Pine Labs, and Khatabook.

In May 2023, it put $100 million into the big fintech company PhonePe. This made it an even bigger player in the homegrown fintech business.

6. InnoVen Capital

In 2015, the Singaporean government’s wealth fund, Temasek, bought the Indian branch of the now-struggling Silicon Valley Bank and entered the venture loan market. Temasek changed the name of the company to InnoVen Capital after getting money from Singapore’s United Overseas Bank.

This got things going for InnoVen Capital, which has become a major player in the Indian venture loan space.

The Mumbai-based venture debt company says it has put more than $800 million into more than 200 startups in different fields so far. It says that it has created 35 Indian stars, such as Myntra, OYO, BYJU’S, and PharmEasy.

But in 2018, it made its first bet in the Indian fintech area when it put money into CRED, which was led by Kunal Shah. Since then, it has grown its portfolio of fintech startups. So far, it has put money into many Indian fintech startups, such as mSwipe, Niro, slice, BharatPe, Rupifi, Stashfin, and ZipLoan.

7. LetsVenture

LetsVenture is an angel network that Shanti Mohan and Sanjay Jha started in 2013. Its main focus is on “potential” early-stage startups.

The network says that it has made 950 deals with money from 19,530 investors and that its portfolio is worth more than $11 billion. It is a business network that does not focus on any one industry.

In 2015, CRED was the first big business that the VC company put money into. After that, it made its fintech investments stronger by putting money into new fintech companies like BharatX, LegalPay, and Castler, among others.

8. Omidyar Network India 

The fund is the Indian branch of the international impact investment company Omidyar Network. It has mostly put its money on early-stage startups in the country.

Reports say that the fund has already put more than $500 million into the Indian startup scene. This money has gone to companies like BYJU’S and Ninjacart, among others.

In 2016, Omidyar Network India made its first big investment in a fintech company called CRED, which wasn’t well known at the time.

It has also put money into well-known fintech companies like Groww, Pine Labs, CredFlow, NeoGrowth, Scripbox, and Indifi.

9. Orios Venture Partners

Orios Venture Partners is an early-stage Indian venture capital company that opened in 2013. Alok Mittal and Rakesh Malhotra came up with the idea for the VC company, which focuses on fintech, healthtech, and consumer internet, among other things.

Many of the VC firm’s previous bets have paid off well, especially those in the fintech field, which has an estimated corpus of more than $250 million. Orios Venture Partners sold its shares in big fintech companies like BharatPe and PolicyBazaar.

Orios Venture Partners is currently investing money from its third fund, which it raised in 2021. Its roster includes companies like CityCash and WeRize.

10. Peak XV Partners

Even though Sequoia India (now Peak XV Partners) started doing business in India around 2006, it didn’t make its first fintech investment until 2017, when it led a $30 million funding round for fintech giant CRED.

Peak XV Partners, one of the largest venture capital firms in the country, didn’t stop there. It worked hard to grow its fintech portfolio, backing many fintech unicorns and companies like Groww, Pine Labs, Khatabook, and Jupiter, among others.

Peak XV has made investments in some of India’s biggest technology companies, such as Flipkart, Paytm, and BYJU’S, among others. It has also made bets in most Indian startup areas other than fintech.

11. Prime Venture Partners

Prime Venture Partners is a company that was started in 2011 by Amit Somani, Bala Parthasarathy, and Shripati Acharya. It is based in Bengaluru. The early stage investor is known to be a big backer of Indian financial startups that are building for the whole world.

The average ticket size for the 44 startups in the VC firm’s portfolio is between $500K and $3M. Prime Venture Partners has stood out among its competitors, especially for its big fintech deals in the past, such as when it sold Recko to Stripe, Happay to CRED, and Ezetap to Razporpay.

The company is currently spending from its fourth fund, but in the past it has put money into a number of well-known fintech companies, such as Niyo, Freo, KredX, and OTOCapital.

12. Stride Ventures

Ishpreet Gandhi started Stride Ventures in New Delhi in 2019. It is a venture debt fund that gives new tech startups all the cash they need and helps them grow. The fund is run by people who used to work in banking, and it says it has raised $314,1 million so far.

So far, it says it has put money into 100 startups in 15 different fields, such as banking, D2C, EV, and others.

Stride Ventures has put money into a number of fintech startups so far, including Castler, ZipLoan, Perfios, Upstox, and others. It has names like HomeLane, MyGlamm, Spinny, Infra.Market, BluSmart, and Tender Cuts in its fintech holdings.

13. Tiger Global

Since the crossover fund went to India in 2007, Tiger Global has become one of the most active fintech investors in the Indian startup scene. Tiger Global invests in startups from the Series A stage to just before they go public.

So far, it has backed big players in the Indian fintech space like PhonePe, Groww, RazorPay, CRED, and BharatPe, among others. The investment company took part in PhonePe’s $100 million funding round earlier this year.

14. Titan Capital

Snapdeal cofounders Kunal Bahl and Rohit Bansal started Titan Capital in 2019 and have so far raised more than $10 billion from more than 100 major investors.

Its portfolio has more than 200 companies from all over the world in areas like D2C, SaaS, and fintech.

So far, Titan Capital has put money into 26 companies in the banking field. Some of the names on this list are Razorpay, Jupiter, Khatabook, ofBusiness, Stable Money, UniCards, and Credgenics.

15. Venture Catalysts

Dr. Apoorva Ranjan Sharma, Anil Jain, Anuj Golcha, and Gaurav Jain started the company in 2015. Since it started, the VC company has put money into about 200 startups, some of which have names like Darwinbox, Zepto, and OfBusiness.

Its first investment in the Indian fintech market was in 2016 when it took part in Khatabook’s $2 million round.

Some of its other important stakes in the Indian fintech ecosystem are BharatPe, GetVantage, HomeCapital, Ideal Insurance, Insurance Samadhan, Junio, Klub, LenDen Club, LiquiLoans, NuPay, and Vested Finance, among others.

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VCats is one of the most busy early stage investors in the country. It has invested in more than 33 soonicorns and more than 100 minicorns. The company says that 54 of the startups it works with have been valued at more than $50 million this year.

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Note from the editor: This is neither a complete list nor a rating of any kind. The names have been put in order from A to Z.

 

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