Fintech Startup Fixerra Pockets Funding To Expand Offerings For Banks, NBFCs

Fintech startup Fixerra has raised INR 14 crore ($1.68 Mn) in a seed funding round from a host of angel investors and family offices, including Jaideep Hansraj, managing director of Kotak securities, Shailesh Haribhakti, chairman of Shailesh Haribhakti and associates, Oisharya Das, chief executive officer of Kotak Private, Shivang Desai and family office of Harish Shah.

The startup plans to use the fresh funds to expand its banking partnerships and improve its product with additional features. It also aims to help digital businesses quickly and compliantly launch banking products, catering to a broad range of superior banking services.

Fixerra, led by founder and chief executive Akshar Shah, is aiming to power over 200 digital businesses with its banking-as-a-service suite in the next three years. The company is actively expanding its banking partnerships and enhancing its product with additional features.

Fixerra provides a user-friendly fixed deposit gateway through partnerships with seven banks and NBFCs. Its API-enabled banking infrastructure allows customisation of fixed deposit offerings for different financial entities, enabling them to go live with a white-labelled solution within a week.

Shah said, “We want to become a digital mall for banks. Over the next three years, we are going to focus on building infrastructure for marketplaces across multiple banking products.”

With increasing internet penetration and access to smartphones, the Indian startup ecosystem has seen the rise of a number of fintech startups over the last few years. 

While many of these fintech startups began operations by providing services like digital payments in case of Paytm and PhonePe and credit card payments in case of CRED, most of these startups have turned towards digital lending now to shore up their top lines. 

While these startups have succeeded in improving access to credit, the central bank has been worried about the risks associated with this. As a result, it has taken a number of steps to better regulate the fintech sector. 

In 2022, the RBI barred non-bank prepaid payment instruments (PPI) issuers from loading PPI with credit lines, dealing a blow to many fintech startups. Last year, the central bank also directed PPI issuers to ‘stop UPI in a cobranding arrangement’. 

Later in November, the RBI increased the risk weightage for unsecured consumer loans to check the unbridled growth in unsecured consumer lending. This decision also impacted many fintech startups.

The release of the draft norms is another step by the central bank to better regulate the fintech sector and avoid formation of risks. The release of the norms comes months after RBI Deputy Governor T. Rabi Sankar called for the creation of SROs in the fintech sector.

The central bank has set the end of February 2024 as the last date for sending feedback on the draft framework for the SROs, after which it will issue the final framework.