Fintech Meetup will invest in 5-7 such startups annually; Founder says fintech should focus on sustainable, profitable business

Can you describe the path you’ve taken from inception to now?

Before resigning from my job at Visa, where I worked to promote financial inclusion, I intended to embark on a road trip from Mumbai to London. However, circumstances led me to travel across India in 2018 to meet fintech startup founders. At the time, the fintech industry was rapidly emerging as a challenge that inspired me to pursue my passion.

Now in 2023, The Fintech Meetup has enjoyed five years of tremendous success. In this period, we have worked with over 1500 fintech startups, invested in 17, collaborated with over 20 financial institutions on innovation programs, and promoted digital financial literacy and awareness of digital payments has organized a number of initiatives, all through the FinTech journey, to enhance

Apart from facilitating funding, what other work do you do to help startups?
Fintech startups seek our support for three primary reasons. Firstly, our knowledge capital is unique due to our vast experience interacting with many fintech startups and our background in financial services. We leverage this expertise to guide startups on matters related to their market, product and business model.

Second, our network capital is invaluable. We work closely with various financial institutions such as banks, NBFCs, insurers, wealth management firms and others. By understanding the fintech needs of these institutions, we facilitate connectivity between startups and financial institutions based on their use cases and merit.

Finally, our venture capital is an important asset. Our Yan Angel Fund invests in fintech startups, and we collaborate with other venture investors who see us as a trusted promoter. In addition to our knowledge and network capital, we provide added value to help startups achieve their objectives.

What is your primary source of income?

We generate our main revenue through Fintech Yatra, a platform where leading financial institutions and venture investors collaborate with us to take forward their innovative initiatives. Our secondary revenue stream is through exits, but since we are still in the early stages of the cycle, we have experienced only a partial exit from our entire portfolio.

What is your process for evaluating fintech startups?

At The Fintech Meetup, we use a multifaceted approach when evaluating fintech startups. In the early stage segment, we prioritize the experience of the founder and the team’s ability to effectively execute their idea. We look for compelling ideas where we can be viable drivers in the market, assist with business development and help startups secure additional rounds of funding. If we believe we cannot provide this level of support, we generally do not invest.

In addition to assessing the founding team, we also consider other essential factors such as market size, profit margin, and startups’ ability to expand their revenue streams to financial institutions. These factors are critical in determining the long-term viability and success of a fintech startup. Ultimately, we aim to identify promising startups that align with our investment philosophy and provide value to our network of financial institutions and investors.

what are your plans for the future?

Fintech Meetup has a clear vision to lead the Fintech revolution in India and contribute significantly to the growth and development of the industry. To achieve this goal, our future plans revolve around catalysing India’s fintech ecosystem and fostering innovation. We are committed to exploring innovative ideas and strategies that can benefit all stakeholders in the ecosystem.

Our top priority is to invest in and support promising fintech startups, and we plan to invest in 5-7 such startups annually. We will provide them with the resources and guidance they need to succeed, focusing on innovative solutions that address critical challenges in the financial services industry such as building financial infrastructure, B2B fintech with SaaS models, cross-border payments, etc. .

In addition to investment activities, we will continue to leverage our vast network of financial institutions and venture investors to facilitate partnerships and collaborations between fintech startups and traditional financial institutions. We believe that such collaborations are important for driving innovation and increasing the reach of FinTech solutions.

What are the challenges facing fintech startups?

Fintech startups face various challenges, including finding suitable co-founders, hiring skilled technology and development teams, navigating macroeconomic uncertainties, and adapting to changing regulatory requirements. Many of these challenges are not unique to fintech, but are common to businesses and entrepreneurs of all types.

How can fintech startups beat VC winter?

To survive the VC winter, fintech startups need to focus on building a sustainable and profitable business that can grow efficiently. This involves building a business model that generates revenue and prioritizes profitability. Since founders typically secure funding with a roadmap of 12-18 months, those that have not raised consecutive rounds after securing funds in mid-2021 may face limited runway. Therefore, it is important for startups to avoid spending too much money on customer acquisition and unnecessary expenses. Instead, they should focus on optimizing unit economics and being judicious with their initial spending. By taking these steps, startups can increase their chances of long-term success.

What is the adoption rate of fintech? What is the future of the Indian Fintech ecosystem?
Fintech adoption in India has shown significant progress in recent years, especially with the successful implementation of the Unified Payments Interface (UPI) system. This has had a significant impact on expanding the reach of banking services to those segments of the population that were previously unbanked.

Due to this rapid adoption of digital payments, financial institutions have been able to collect transaction data, thereby improving underwriting processes and making better lending decisions. This has helped in increasing financial inclusion by providing credit to those sections of the population who were previously underserved.

In addition, there has been a steady increase in the adoption of fintech solutions such as online lending platforms, insurance aggregators and digital payments. The speed, convenience and cost-effectiveness of these services have been the main drivers of their popularity among consumers.

With a growing number of tech-savvy consumers, increasing smartphone penetration and expansion of digital public infrastructure, the outlook for the Indian fintech ecosystem appears bright. Financial institutions are also collaborating with fintech startups to leverage their innovative technologies and services, resulting in new business models and revenue streams.

How is the fintech journey performing this year amidst the challenges facing fintech?

Despite the challenges facing fintech, the fintech journey remains positive about its prospects. While uncertainty remains regarding the duration of the funding winter, the early-stage fintech sector is still flourishing with many innovative ideas. Fintech Yatra has recently worked with over 250 fintech startups across Mumbai, Pune, Bangalore, Chennai, Hyderabad and Delhi and plans to hold additional 100+ discussions across different regions of the country.

Furthermore, the Indian fintech ecosystem has seen a rise in micro-VCs with a focus on fintech over the past two years. This year, Fintech Yatra is supported by a large number of financial institutions and venture investors, making it the biggest event ever. Like previous years, Fintech Yatra is conducting digital payments and financial literacy sessions for women micro-entrepreneurs.

In terms of segments, the fintech journey has seen promising startups creating solutions in areas such as lending against securities, infrastructure for wealth management firms, fintech in cyber security, infrastructure for lending and supply chain finance. have been