Rajesh P Nair’s Post

🤝🆕 Aurionpro Solutions to acquire fintech startup Arya AI for $16.5 million Under the all-cash deal, NSE-listed Aurionpro Solutions is set to acquire 67% stake in the Mumbai-based company. Platform-as-a-service Arya.ai, founded in 2013 by IIT Bombay graduates Vinay Kumar Sankarapu and Deekshith Marla, had raised about $2 million from investors such as YourNest Venture Capital, DMI AIF - The Sparkle Fund Fund and VentureNursery. Most of these investors, barring a few angels, would be exiting the cap table after the deal, Kumar told ET. https://lnkd.in/d_PDqum2 By Supriya Roy

Daily research from FinTech Global New FinTech unicorn activity during October reaches highest level in 2023 New unicorn levels have picked up in October with nine reaching status in the month, the highest levels since the same period last year. FinTech unicorns accounted for a third of these across three different sectors: RegTech, Lending Technology and Infrastructure & Enterprise Software. The FinTech companies reaching unicron status include: Prove, an identity authentication platform headquartered in New York, secured $40m in funding, with leading investments from strategic backers Capital One Ventures and MassMutual Ventures. This funding round placed the 15-year-old company's valuation at $1bn. Lendbuzz, a startup specializing in car financing and based in Boston, raised a total of $45m in equity and $300m in debt, with primary support coming from insurance holding company Group1001. This eight-year-old company's valuation now stands at $1.1bn. Sydney, Australia, has birthed its latest unicorn company in the form of Employment Hero, a provider of HR and payroll services. Joining a select group of ten other current unicorns from the continent, this cloud-based firm secured a substantial $267m in Series F funding, with TCV leading the way. The company, which has been in operation for nine years, is now valued at $1.3bn.

Fintech is ripe for rebundling. Why? Even the sub-categories of fintech are massive. One example: Here are all the tech cos in the RIA channel for example there are 150+ solutions on this market map. Rebundling gives to massive advantages. (1) better product experience. there is no way that the best product experience is going to be delivered by 5-50+ independent solutions. (2) better business model. when you own multiple products you stack ACVs. This creates a flywheel. High ACVs => more & better products => higher ACVs. can also have better service and support for customers when you own more of their stack and they are a larger account so a success rep can (1) solve more problems b/c they touch more things (2) be more responsive b/c supports fewer clients and therefore has more context. Of course, rebundling is not easy. It requires (1) sophisticated founders (2) incredible execution (3) complex org considerations (who owns what products, what PnL etc). But when you put it all together it's magic. The good news is there are more sophisticated founders in market than ever who are up to the challenge. And they can higher more sophisticated leaders & ICs who have been on multiple tours of duty in fintech and know what it takes to build in complex, regulated industries. The famous picture of Wells Fargo home page circa 2014, showing how various players were unbundling the bank never happened. Wells is bigger now than ever. I think the true risk banks face is not that they will get unbundled by best in class point solutions. Instead, the risk is that great entrepreneurs will create new, novel bundles that are far superior to the broken disjointed bundles that the banks offer. In wealthtech, I invested personally in Altruist (much later than I typically do) because I've been so impressed by the work they've done to vertically integrate and own more of the stack. The RIA space is large, so there are likely other opportunities in wealthtech beyond Altruist (if that's you, I'd love to hear from you). In particular though, I'd love to hear from entrepreneurs who are rebundling in any area of financial services whether that's consumer, enterprise, SMB, proptech, insurtech etc etc.

Boston’s AI FinTech startup EnFi, Inc bags $7.5m from top investors The $7.5m seed funding round was spearheaded by Unusual Ventures, accompanied by substantial contributions from Boston Seed Capital, Argon Ventures, and Impellent Ventures. These notable investors have recognised the potential of EnFi’s innovative approach to financial technology. EnFi is dedicated to transforming the lending process through advanced artificial intelligence. By employing sophisticated AI tools, the company scrutinises raw borrower data, seamlessly integrating information from both public and private sources. This integration enables lenders to enhance their risk assessment capabilities and manage loans more effectively. EnFi’s unique methodologies, Continual Risk AnalysisTM and Predictive Risk Identification, provide a holistic view of potential and existing risks within loan portfolios. The newly acquired funds are earmarked for a strategic expansion of operations and ongoing development efforts. With these investments, EnFi aims to refine its technology and broaden its impact across the lending industry. Additional insights into EnFi reveal a company poised for growth in various sectors beyond lending. The technology developed by EnFi has potential applications in procurement, insurance, real estate, corporate development, and even venture capital and private equity funds. EnFi co-founder and serial entrepreneur Joshua Summers said, “This funding allows us to accelerate our mission of transforming lending with AI. Our technology not only enhances how lenders assess risks but also broadens the scope of our impact across various financial sectors.” Source Fintech Global #fintech #ai #riskscoring

Danish fintech spektr raises $5 million to revolutionise due diligence. Danish startup #Spektr announces a successful EUR 5 million seed funding round, marking a significant step forward in transforming due diligence processes for financial sector firms. This funding round saw participation from notable investors including Northzone, PreSeed Ventures, and Seedcamp, underscoring the market's confidence in Spektr's innovative approach. Spektr's platform is designed to streamline and enhance due diligence by offering a no-code, market-customizable solution that automates up to 95% of alerts. This innovative approach not only promises to make due diligence hassle-free but also positions Spektr as a faster, safer, and more budget-friendly alternative to traditional manual methods. Behind Spektr's groundbreaking platform are serial entrepreneurs CEO Mikkel Skarnager and Ciprian Florescu, who previously founded and sold their no-code KYC and client onboarding platform HelloFlow to Canada's Trulioo for over $50 million in 2022. Their expertise and success in the fintech space are a solid foundation for Spektr's ambitious goals. Mikkel Skarnager, commenting on the launch, highlighted the potential of transforming due diligence from a costly expense into an efficient function with commercial value. This shift not only benefits companies financially but also represents a significant innovation in compliance management. The implications of Spektr's platform for the financial sector are far-reaching. By reducing the time and resources required for due diligence, financial institutions can focus more on their core services and customer experience. Moreover, Spektr's approach could set a new standard in the industry, encouraging more fintech companies to explore automated and no-code solutions for compliance and beyond. The article on Finextra in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

8 Misconceptions vs. Realities: What Truly Defines Success in Fintech" Introduction: The whirlwind world of fintech I met at Techpoint has been filled with spectacular numbers. “Ah! This company just raised a gazillion dollars. God when? Company B is processing a gazillion transactions per hour. Fada lud, am I a rice?”  I’ve had enough behind-the-scenes conversations that few are willing to talk about publicly. Here are 8 misconceptions and realities of what truly defines success in fintech. Feel free to add yours. Misconception 1: Launching a New Product The Hype: A new product launch seems like a ticket to instant success. The Reality: What truly counts is how well the product solves real-world user problems. It's about impact, not just beautiful lines of code behind a pretty interface. Misconception 2: Gaining 100k Users The Numbers Game: Hitting user milestones feels like winning. The Reality: The real win is in active, satisfied users who find value and pay for your service. Quality over quantity every time. Not a loose definition of active, please.  Misconception 3:  Processor-in-chief: Processing billions of dollars in transactions.  The Reality: How many of those transactions are revenue-generating?  It’s not about 5 naira moving around. It’s about users bringing revenue.  Misconception 4: Massive Funding Rounds Show Me the Money: Big funding is often seen as a fintech's ultimate success. The Reality: Sustainable growth and profitability matter more in the long haul. Funding is a means, not an end. Reality 1: Positive User Feedback The Satisfaction: Positive feedback and word of mouth is the heartbeat of fintech success. The Impact: It shapes future developments and builds trust. If bad news hits, users are ready to defend you to the end.  Reality 2: Team's Growth and Development The Backbone: A growing, evolving team builds products for happy users. The Benefit: You outcompete everyone with a killer team. Invest in people, and reap rewards. Reality 3: Small but Impactful Innovations The Little Things: Fingerprint to login, human-sounding customer service (maybe use generative AI?) The Power: They show adaptability and user focus. Small steps lead to giant leaps. Reality 4:  Reality 4: Success beyond the exit The Big Event: An exit, whether through acquisition or IPO, is often seen as the pinnacle of success in fintech. Success Beyond the Exit: The real win in fintech is not just in exiting but in creating enduring value and positively impacting the financial ecosystem. The real treasures are often hidden in the day-to-day victories and the small but significant strides we make. Subscribe to Fintech Today for more musings on fintech and user behaviour. https://lnkd.in/g8SwZFa4

Are you contemplating launching a FinTech startup amidst the current chaos in the industry? 🚀📉 Despite recent setbacks, such as the bankruptcy of prominent players like Synapse, the technological and infrastructural resources available today make it an intriguing time to dive into FinTech. From the nightmare of issuing debit cards just a half-decade ago—a process fraught with delays and restrictions—to today's seamless solutions like Lithic, the shift has been phenomenal. In my recent experience, even as recently as 2018, setting up financial technologies involved cumbersome processes, excessive paperwork, and rigid limitations. Now, revolutionary SaaS products allow startups to establish sophisticated FinTech services that would have previously taken years of financial engineering. However, it's crucial to acknowledge the intensified scrutiny and regulatory challenges facing the sector, especially services akin to banking-as-a-service. These areas might face hurdles in terms of investment and operational leeway in the near future due to regulatory actions. Despite these challenges, the lowered barriers to entry and the rapid validation possible in today's tech landscape offer unparalleled opportunities. Aligning with Warren Buffett's strategy, "Be greedy when others are fearful," suggests that now might actually be an ideal period to launch a FinTech venture, especially outside the banking-as-a-service domain. The uncertainty could be the perfect ground for innovation and capturing market share before the next market upturn. Curious to hear your thoughts on this! Is the current climate a deterrent, or do you see it as a fertile ground for innovation and growth in FinTech? 🤔💬 #FinTech #StartupStrategy #Innovation #FinancialServices #Entrepreneurship #RegulatoryChallenges #MarketOpportunities

As we dive into the vibrant world of fintech innovations, it's moments like these that truly stand out! Mswipe Technologies Pvt. Ltd., a trailblazing Point-of-sale (POS) service provider and device manufacturer, has just secured a whopping $20 million in primary growth equity capital from its esteemed circle of existing investors. This monumental funding round is not just a number; it's a testament to the relentless dedication, innovative spirit, and unwavering commitment of the Mswipe team. With this fresh infusion of capital, Mswipe is poised to supercharge its merchant payment network, bringing cutting-edge payment solutions to the forefront of businesses big and small. But that's not all – the company is gearing up to bolster its product development and technological infrastructure, ensuring that they remain at the pinnacle of the fintech revolution. 🌟 A Salute to the Visionaries 🌟 Behind this success story are Mswipe’s key investors - Alphawave Capital, Matrix Partners India, BCapital Fund, DSG Consumer Partners, Epiq Capital, UC-RNT, and Ola. Their unwavering faith in Mswipe's vision has been instrumental in reaching this milestone. With a robust funding history of $106 million across nine rounds, Mswipe's journey is nothing short of inspirational. Over the past 13 years, Mswipe has not only built a merchant network exceeding half a million but has also established itself as a pioneer in expanding India's digital payment landscape. Their profitability at an EBITDA level for the last five quarters speaks volumes of their operational excellence and strategic foresight. 🏅 A Future Bright with Possibilities 🏅 This funding round comes on the heels of a significant milestone - securing a payments aggregator license from the Reserve Bank of India (RBI), a clear nod to Mswipe's compliance, innovation, and reliability in the fintech space. Founded in 2011 by the vision of Manish Patel , mswipe has been at the forefront of offering digital solutions to merchants, revolutionizing the way businesses transact and grow. 🌈 Calling All Visionaries! 🌈 To all the fintech innovators and disruptors out there, especially our friends at Mswipe Technologies Pvt. Ltd., as you embark on your journey to scale new heights and expand your human capital, remember, the path to success is paved with partnerships that empower and inspire. Human Capital Express (https://lnkd.in/djwWwRY2) is here to champion your growth, connect you with top talent, and fuel your journey forward. Let’s make magic happen together! Source - https://lnkd.in/gZBZcdUb Website - https://lnkd.in/gV3udy8S Follow us for more! #Mswipe #FintechInnovation #DigitalPayments #GrowthEquity #HumanCapitalExpress

We are thrilled to announce that we have been featured in the prestigious list of Emerging Mumbai-Based Fintech Innovators Elevating Asian Financial Services Landscape by BestStartup.asia! Established in 2020, TruBoard Partners is India's pioneering independent sector-agnostic asset performance management company. Our diverse portfolio spanning infrastructure, renewable energy, real estate, financial services, and retail loans speaks volumes of our commitment to innovation and excellence. At TruBoard, we manage assets worth $1.8 Bn, harnessing the power of data and AI to optimize portfolio returns. Our innovative platform offers a 360-degree view of investments, empowering our clients with superior decision-making capabilities. What sets us apart is our 'PhyGital approach' – a fusion of data-driven products with last-mile execution, revolutionizing the post-investment performance cycle. Through our hands-on approach and relentless dedication, we drive growth for capital providers, setting new standards in the industry. This recognition is a testament to the hard work and dedication of our talented team. We are grateful for the opportunity to make a meaningful impact on the financial services landscape and look forward to continuing our journey of innovation and success. Cheers to TruBoard Partners and our incredible team for this remarkable achievement! 🎉🚀 Vipul Thakore | Nandkumar Surti | Srickant Rajagopal #FintechInnovators #AsianFinancialServices #TruBoardPartners #Innovation #SuccessStory #assetmanagement #retail #realestate #infrastructure #renewableenergy #renewables #india #startups #startupjourney #loanservices

Exciting News in Fintech! We are thrilled to share the latest scoop in the world of finance! Mumbai-based rural-focused fintech startup Navadhan Capital, has just secured a whopping $5 million in a pre-Series A round led by Prime Venture Partners, with continued support from Gemba Capital and Varanium NexGen Fintech Fund. Navadhan, founded in 2019 by visionaries Nitin Agrawal, Vijay Haswani, Anirudh Ramakuru, and Amit Ranjan Biswal, has been making waves with its data science-driven approach to lending. Their proprietary alternative underwriting model, which evaluates digital footprints and cash flow surrogates, sets them apart in the industry. The funds raised are earmarked to turbocharge Navadhan's technology platform, AceN, and fortify its distribution network and delivery model. AceN provides end-to-end services, including customer sourcing, digital onboarding, underwriting, payments, and collections. What's truly remarkable is Navadhan's dual approach—blending a robust digital platform with an on-ground presence for personalized customer service. This unique model ensures a seamless financial experience for rural customers, bringing them into the fold of inclusive financial services. This marks Navadhan's second successful funding round in 2023, following a $1.5 million seed round earlier in June co-led by Varanium NexGen and Anicut Capital LLP Capital. The continued support from investors underscores confidence in Navadhan's mission to bridge financial gaps in rural India through cutting-edge fintech solutions. As a News Reporter, it's inspiring to witness fintech innovations making a real impact on communities. Kudos to Navadhan for their commitment to financial inclusion, and here's to the transformative journey ahead! #FintechNews #Navadhan #FinancialInclusion #TechInnovation #RuralFintech #InvestmentNews https://lnkd.in/gir6fgw9