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Fintech refers to an amalgamation of finance and technology. It is a wide-ranging category comprising companies that integrate the latest technology into financial businesses. Likewise, Fintech companies develop futuristic digital solutions for payment processing. The facility of cashless payments has made immense growth in recent years, pumping wealth creation opportunities in the Fintech sector for investors.

Fintech – From an Investment Perspective

The Fintech sector plays a crucial role in facilitating cashless payments with optimal ease and convenience. India stands amongst the rapidly growing Fintech markets across the globe. Out of the more than 2,100 Fintech companies in India, 67% have emerged in the last five years only. The valuation of the Fintech sector in India is estimated at $150 billion by 2025 from $50-60 billion in FY (financial year) 2020.

The transaction value size of the Fintech industry will grow from $66 billion in 2019 to $138 billion in 2023, at a 20% CAGR. There are various sub-segments in the Fintech ecosystem, such as payments, personal finance management, lending, insurance, regulation technology, and many more. The cumulative funding of the Fintech sector in India stands at $27.6 billion.

As of October 2021, 261 banks chipped into Indian UPI (Unified Payments Interface) with 4.21 billion monthly transactions amounting to $100 billion. There are 1,860 Fintech start-ups, out of which India's 17 Fintech companies have entered into the Unicorn club with a valuation of around $1 billion. Therefore, such aspects will generate wealth creation opportunities for the investors in the Fintech segment.

What are the diverse types of Fintech stocks?

Generally, Fintech companies utilize technology in the finance domain. There are different categories of services under the Fintech canopy, and the following are a few of them.

·        Payment Processing

·        Online/P2P or Peer-to-Peer Lending

·        Online and Mobile Banking

·        Financial Software

·        Person-to-Person Payments

·        Financial Services

Segment-wise Breakdown of Fintech Companies

As per BLinC Insights Report, the overall size of the Indian financial services in 2021 will reach $500 billion, $31 billion out of which belongs to the Fintech sector. The Fintech industry might grow at a striking CAGR of 22% in 5 years. Hence, many zealous investors are heading towards the Fintech space to tap wealth creation opportunities in the stock market. India’s Fintech ecosystem ranks at 3rd position after US and China. Here is a segment-wise breakdown of 6,386 Fintechs in India!

Fintechs (Total  6,386)

Diverse Segments

Investment Tech

28%

Payments

27%

Lending

16%

Banking Infrastructure

9%

Other Fields

20%

 Popular Indian Fintech Companies with Total Funding and Current Valuation

Fintech Company

Total Funding

Current Valuation

Razorpay

$ 367 Million

$ 3 Billion

Cashfree

$ 42 Million

$ 200 Million

Paytm

$ 3.54 Billion

$ 16 Billion

BharatPe

$ 617 Million

$ 2.85 Billion

Cred

$ 443 Million

$ 2.13 Billion

Digit

$ 442 Million

$ 3.5 Billion

PlumHQ

$ 20.7 Million

$ 85.4 Million

Groww

$ 143 Million

$ 1 Billion

Small Case

$ 70.9 Million

$ 102 Million

Ofbusiness

$ 353 Million

$ 1.5 Billion

Jupiter

$ 71 Million

$ 300 Million

Open

$ 36.6 Million

$ 361 Million

Fampay

$ 47.8 Million

$ 170 Million

CoinDCX

$ 112 Million

$ 1.1 Billion

Coinswitch

$ 41.5 Million

$ 500 Million

 Conclusion

The Vivekananda Memorial Hospital in Sargur has received CSR support from HDB Financial Services (HDBFS) for extending advanced healthcare facilities to the marginalized communities in rural areas.

 Vivekananda Memorial Hospital is a 100-bed multi-specialty facility, catering to the tribal-rural communities in Sargur, H.D. Kote and nearby areas by providing diagnostic and surgical treatment for communicable and non-communicable diseases at highly subsidised rates to nearly 40,000 patients annually from rural and indigenous tribal communities.With the CSR support from HDBFS, advanced medical equipment and devices were procured and installed in departments such as ophthalmology, gynecology, dental and oral care. “Some of these include advanced OT tables, dental chairs, autoclave system, portable X-ray, scan biometer, and laparoscopic instruments”, said a statement here.

The new healthcare facilities were inaugurated recently. “The newly installed equipment will aid Vivekananda Memorial Hospital in efficiently performing surgeries, and thus cater to many more patients in need of quality and affordable medical care”, the statement added.

 The company has shown good signs of growth for the past many years and investing in such companies in their pre-IPO stage can turn out to be really good wealth creating opportunity for retail investors.

 HDB Financial Services (HDB) is a subsidiary of HDFC Bank that provides loans, fee-based products, and BPO services. The company has quickly grown to have more than 1300 Branches spread across 24 States & 3 Union Territories.

 The company is not listed in Indian stock exchanges and is currently in pre-IPO stage. Investing in such growing, backed by major investors can create huge wealth creation opportunity for an early-stage investor.  

Net worth of the company has consistently grown to more than Rs. 8400 crores in last 4 years with high EBITDA margins (40-50%) during the same period.

 HDBFS shares are few of the hugely sought-after pre-IPO shares available in Investopia marketplace. It is considered as one the best investment opportunities for retail investors.

HDFC Bank holds majority (95%) shares of the company.  

 In FY 2021-22, NBFCs can expect growth in the vehicle-financing space after a lull in FY 20-21 due to pandemic and reluctance of buyers due to increase in vehicle prices due to introduction of BS-VI norms.

Pre-IPO stocks are shares that a private company sells to investors before the company goes public (before its IPO). Pre-IPO funds allow HNIs and family offices to invest in a pool of privately-held and fast-growing companies that are looking to go public in the next three to five years. Investopia is the Bazaar for an investor to grab opportunities for alternative sources of investment in companies at different stages of their IPO journey Investing in pre-IPO stock can be a strategic way to build wealth in the long term.

Investopia allows you to purchase shares in unlisted firms before they go public. Investopia will be your best investment companion. It is an online platform that allows eager investors to enter the unlisted area, making their trip simple and convenient. It also provides financial insights into unlisted companies to help investors make informed decisions. For the IPOs to come, the Indian stock market was on a record-breaking spree.