New Delhi: The world of finance has experienced a seismic shift in the past two decades with the advent of fintech, where finance meets technology. This rapidly evolving sector has transformed the traditional financial services industry, introducing innovative solutions that have captivated a generation. In India, rising income is driving the demand for financial services across income brackets. The demand for digital financial services is further propelled by the disruptive entry of fintech and NBFCs into the market. With each groundbreaking innovation, fintechs and NBFCs have reshaped the way we manage our money, make transactions, and access financial services.
Below, we explore the top five companies that are disrupting the traditional financial services industry in 2023. From groundbreaking advancements in payments and lending to transformative escrow and micro-savings solutions, these companies are reshaping the way we save, lend, bank, transact, and engage with our finances.
MobiKwik
MobiKwik is a leading digital banking platform in India that offers a range of financial products for consumers and merchants, such as digital credit, investments, and payments. Founded in 2009 by Bipin Preet Singh and Upasana Taku, the company aims to improve financial accessibility and equity for Indians by providing affordable and convenient financial services to all, regardless of location or income. With 140 million registered users across Bharat, MobiKwik customers use the platform to make payments for various needs, including utility bills, eCommerce shopping, food delivery, and retail purchases from local kirana (mom& pop) shops.
Recognising the low credit card penetration in India (at 3.5%), MobiKwik introduced digital credit in 2018 to cater to the credit needs of digitally savvy users. The company currently has 40 million pre-approved credit users and is focused on targeting the unserved population and providing them with their first credit experience.
MobiKwik has successfully expanded its reach to underserved communities in tier 2, 3, and 4 cities across India, with users in 99% of Indian pin codes. The company achieved impressive financial growth, ending FY23 with INR 560 crores in revenue and becoming profitable in the fourth quarter. Its contribution margin rose to INR 169.5 crores, showing a remarkable 304% year-on-year growth compared to FY 2021-22.
Zerodha
Zerodha is a bootstrapped Indian unicorn online brokerage and financial services company. Established in 2010 and headquartered in Bangalore, Zerodha has emerged as a prominent player in the online trading and investment sector. The company operates in nine cities across India and is an official member of BSE, MCX, and NSE’s consultative committee for growing business. Zerodha’s disruptive pricing model and user-friendly interface has revolutionised the industry, offering brokerage-free equity investments, retail and institutional broking, as well as currencies and commodities trading.
The platform boasts over 4 million registered users and handles more than 15% of India’s daily trading volume. Zerodha’s journey began on August 15, 2010, driven by the vision to eliminate obstacles faced by traders and investors in India. The company’s name, “Zerodha”, is derived from a combination of “Zero” and “Rodha,” the Sanskrit word for barrier.
Today, Zerodha holds the distinction of being India’s largest stock broker in terms of active retail clients, with 1+ Crore clients placing millions of orders each day through their powerful ecosystem of investment platforms, contributing over 15% of all Indian retail trading volumes. Moreover, Zerodha goes beyond its core services by offering popular open online educational and community initiatives, empowering retail traders and investors with valuable knowledge and resources.
Paytail
Paytail, founded in March 2021 by banking industry veterans Vikas Garg and Amit Chaturvedi, is revolutionising offline commerce through its innovative solutions by enabling instant paperless no-cost EMIs for consumers and transforming the selling experience for merchants with scalable technology solutions. The company enables merchants to offer 0% EMI options directly led by original equipment manufacturers (OEMs) and other sellers, resulting in improved sales. With its focus on affordability, speed, and convenience, Paytail is disrupting the $1 trillion offline commerce market.
In FY23, Paytail experienced significant growth in revenue, with quarterly growth surpassing 70% and annual growth reaching 9X. The company’s total disbursals stood at INR 1200 crores in FY23 compared to INR 142 crores in FY22. This growth can be attributed to the expanding distribution network of over 85,000 merchants and corporate partnerships. The company aims to expand its network to 400,000+ merchants in the next 2-3 years. The company has started delivering operating profit and is geared to scale the business sustainably.
Recognising the untapped potential in the Indian retail market, Paytail believes that technology can level the playing field for all merchants and eliminate barriers to growth. The company’s mission is to create an environment where technology is accessible to all and retail businesses can thrive equally within the economic framework.
Castler
Castler is a pioneer in India’s digital escrow sector. Established in 2020 by startup veterans Vineet Singh and Dinesh Kumar, the company’s primary goal is to develop a transaction banking-focused escrow banking solution for enterprises, covering both domestic and cross-border transactions. Additionally, Castler aims to democratise the adoption of escrow products among consumers and MSMEs to combat fraud.
Castler ensures that transactions between parties are executed in accordance with mutually agreed-upon terms and conditions. Its versatile offerings cater to various industries and use cases, accommodating individual buyers and sellers and enterprises alike. The company’s proprietary Digital Escrow Banking Suite provides clients with a unique ‘Open, Own & Operate’ escrow solution, fostering trust and transparency in every transaction.
The company’s growth has been remarkable, with a 333x increase in GTV (gross transaction value) since its inception. From July 2021 to March 2023, Castler witnessed a significant surge in GTV, skyrocketing from INR 15 crores to INR 5,000 crores. While the number of escrows opened with Casler increased 200x from 50 to 10,000, the company’s average overnight balance spiked 25x reaching INR 200 crores from INR 8 crores, and escrow transactions increased from 855 to 100,000.
Siply
Siply, founded in July 2020 by Sousthav Chakrabarty and Anil Bhat, is a tech-enabled micro-savings platform that aims to become the preferred financial services brand for the 40 crore Indians who are currently not part of the formal banking system.
Siplyencourages underserved individuals such as contract workers, blue-collar workers, gig economy workers, and small business owners to develop a savings habit through sachet financial services, with investments as low as INR 1.00. The micro-savings platform provides niche sachet services such as Chit Linked Saving Scheme, Chhotastock, Micro-credit, Siply Gold Savings Scheme, Siply Gold Jewellery Scheme, and more. Siply aims to foster a more inclusive, financially secure Bharat by promoting savings and investments as integral parts of financial planning.
The company currently has 14 branches in 3 states and 8 cities. In September 2022, Siply inaugurated its first phygitalSiply Seva Kendra in Bengaluru, Karnataka, followed by two more in Mysuru and Belgaum. The company plans to establish additional Siply Seva Kendras in Maharashtra, Tamil Nadu, and Kerala in the coming months. Over the next three years, Siply aims to launch 1,000 branches across 115 cities in India and hire around 2,000-3,000 employees for its Siply Seva Kendras nationwide. Siply achieved profitability in November 2022, reporting a profit of INR 2.12 crores.
