Unitus Seed Fund invests in financial technology startups innovating for the masses in India
Proliferation of technology in everyday lives, willingness to borrow and ease of access to credit with the power to dramatically change lives- these are the main reasons why we, at Unitus Seed Fund, are chasing ‘FinTech’ startups. A testimony to this is that Indian FinTech startups raised $1.5 billion in investments in 2015, six times more than 2014.
The power to create a multiplier effect is what draws investors, whether mainstream or impact-focused, to FinTech companies. The ‘Uberization’ of banking, the ‘WhatsApp’ moment in the financial sector, the ‘Unbundling’ of banks- whatever words one may select to describe the ‘FinTech’ revolution, the truth is that startups creating true mass scale disruption are here to stay. With an inherent potential for mass scale impact by leveraging technology to provide financial services in a cost-effective manner, Fintech firms can leapfrog the borrower’s and their family’s standard of living.
FinTech Areas We Particularly Like
We, at Unitus Seed Fund, are scouting for such Fintech startups that have potential to create mass scale financial inclusion. Listed below are a few sub-sectors that promote inclusion bringing large sections of population under the gamut of financial services –
- Micro or Group Savings - Digital savings platforms that leverage technology to facilitate micro/group savings have potential to disrupt the way Indians save.
- Alternative Credit Scoring and Lending - Innovative credit scoring models based on proprietary algorithms that use mobile phones, social media and other digital data to provide credit to the unbanked/underbanked make for attractive investment targets due to their potential for rapid scale with a focus on cost efficiency.
- Invoice Discounting - These are startups that are trying to provide credit to small suppliers of large companies by discounting their invoices. In simpler words, small suppliers can now collect money quicker and put those funds to productive uses.
- Micro-Insurance - We are scouting for startups that use mobile technology to disrupt the insurance industry and fuel financial inclusion.
- Startups leveraging India Stack - Described as “Technology for 1.2 billion Indians”, India Stack which is backed by Aadhaar, the world’s largest identity database, offers Indian startups an opportunity to truly disrupt the way Indians pay, save, borrow, shop, work, communicate, store, trade…the possibilities are limitless. Startups that integrate elements of the Stack to rapidly scale their business are what we are seeking to back.
Read our blogs on FinTech to know more on the kind of FinTech startups we are looking for –