Mumbai-based fintech startup Fingpay has raised INR 27 Cr ($3.5 Mn) in a Series A funding round from IvyCap Ventures.
The company reportedly said that the funds will be used to add various banking and financial products on the platform that can be accessed by its last-mile customers. The company will also invest in entering new geographies.
Founded in 2016 by Pratyush Halen and Anuraag Agrawal, Fingpay-parent company Tapits enables merchant onboarding by using eKYC, PAN and IMPS verification. Tapits provides merchants with a payment solution that encompasses payments, settlement, reconciliation, MIS reports, self onboarding & security.
Some of its functionalities have been used for enabling the Aadhaar pay option on ‘Eazypay’ – the country’s first digital PoS application that enables merchants to collect payments from customers through multiple digital modes.
Fingpay had earlier raised seed funding from ICICI Bank in 2018. The company aims to evolve into a digital or neo-bank.
Pratyush Halen, cofounder and CEO, Fingpay said, “In the current situation, digital banking has become the need of the hour for all the segments of our society. As we stride towards digital and financial inclusion, we are developing simple, secure and reliable banking and financial products for the last mile.”
A Credit Suisse report claims that the Indian digital payment sector is expected to grow five-fold and reach $1 Tn by 2023.
India is expected to clock the fastest growth in digital payments in terms of transaction value between 2019 and 2023 with a compounded annual growth of 20.2%, according to an Assocham-PWC India study. It said that the exponential rise in online transactions is due to the dual factors of demonetisation and discounts through digital payment options on ecommerce platforms.
DataLabs by Inc42 noted that with $2.6 Bn in total funding, fintech startups recorded 125 deals in 2019. The funding amount is 71% higher than 2018 whereas the deal count plunged by 9% compared to the previous year with Delhi NCR taking the lead.