Mumbai-based fintech startup Fintso, on Tuesday (March 17), announced that it has raised $2.6 Mn in its first funding round from angel investors including DBS Group CEO Piyush Gupta, Deutsche Bank MD Dilip Khandelwal, CEO of Mankind Rajeev Juneja, and founder of Infochips Pratul Shroff.
With this funding, Fintso wants to build a B2B2C wealth management platform which is expected to help independent financial advisors to enhance relationships with their clients and improve efficiency in operations, thereby increasing productivity and revenue generation. Additionally, Fintso will also invest in strengthening its operations and servicing teams to offer real-time support to their clients.
Founded by Rajan Pathak and George Mitra in 2019, Fintso is aiming to help independent financial advisors by providing them with an online platform to take an omnichannel approach to selling financial solutions. The platform is said to be powered by new-age technologies such as robotic process automation (RPA), artificial intelligence (AI), and machine learning (ML).
Pathak said that independent financial advisors have been the trustable sources for clients. “Providing solutions to them, to help them do more and do better, for their clients, is the most effective way of addressing this large, yet highly fragmented, market,” he added.
Infochips’ Shroff said that similar to the ecommerce boom, the demand for financial services in the country has surged in Tier 2, 3, and 4 cities. He believes that with its platform, Fintso can help independent financial advisors to tap these markets.
A recent report by DataLabs by Inc42 shows that there are around 2,707 fintech startups in India and $5.29 Bn have been invested between 2014-2018 in this sector. While most of the funding has been raised by Paytm and PhonePe, other segments, including wealth management, have attracted investors as well.
With increasing investments flowing towards the segment, the overall wealth management network is all set to boom and that by the end of 2020, 21 paise out of every rupee invested in mutual funds will likely be through online portals, according to a report by Deloitte India.
Major players in the wealth management segment include Kuvera, Cube Wealth, Groww, IndWealth, ScripBox, among others. Other startups which are also present in this segment include Krystal.AI, Upwardly, WealthBucket, among others. While AI-based wealth management platform Krystal.AI bagged $6 Mn in Series A round from Chiratae Ventures (formerly IDG Ventures India) and Desai Family Office in January 2020, WealthBucket had bagged INR 18 Cr ($2.4 Mn) in a funding round from NorthStar Ventures, founder of Devnagri, Vinod Khatumal, and other high net worth individuals (HNIs).