OneCard, WintWealth Apply For NBFC Licence

Now, Neobanking Startup Fi Secures NBFC License From RBI

SUMMARY

The startups are looking at joining the growing list of NBFCs such as Jupiter that have received lending licence lately

In addition, stock trading platform Upstox is also planning to foray into the credit segment

Digital lending has become a lucrative area for India’s fintech startups to find opportunity

Fintech unicorn OneCard and another fintech startup WintWealth have reportedly applied for non-banking finance company (NBFC) licence.

The startups are looking at joining the growing list of NBFCs such as Jupiter that have received lending licences lately, ET reported.

In addition, stock trading platform Upstox is also planning to foray into the credit segment. However, it is looking at partnerships with other NBFCs to start with and eventually go on its own.

OneCard, founded in 2018 by Anurag Sinha, Rupesh Kumar and Vaibhav Hathi, issues co-branded credit cards in partnership with the likes of South Indian Bank, Federal Bank, BoB Financial, and SMB Bank. It launched its first mobile metal card in 2020.

With the NBFC licence, it would be easy for OneCard to expand its portfolio in the personal loan segment.

On the other hand, WintWealth offers SIP-style aggregated debt instruments which are less risky and provide high returns — such investment opportunities are usually available to high-net-worth individuals (HNIs).

The startup may also add offerings including loans against the corporate papers held by customers if it receives a licence.

There were reports earlier this year that the RBI is apprehensive about giving NBFC licences to fintech startups largely due to concerns related to ownership of these fintech companies and the origin of capital flowing into these firms.

Earlier in April, Neobank Jupiter secured a non-banking finance company (NBFC) licence from the Reserve Bank of India (RBI). Before that, microlending startup ftcash was the last company to receive RBI approval for its NBFC licence, back in November 2022.

Digital lending has become a lucrative area for India’s fintech startups to find opportunity. For instance, Kunal Shah-led CRED is looking at a massive lending play for new-to-credit users.

As per Inc42’s State Of Indian Fintech Report Q2 2023, the lending tech opportunity is estimated to grow to $1.3 Tn by 2030. Consumer lending remains one of most sought after segments by Indian startup investors due to the larger addressable market and growing demand for credit-led consumption in India.