Funding alert- Fintech startup announced a funding of USD 1.5 million

Funding alert- Fintech startup announced a funding of USD 1.5 million. This sector is doing really well

Let us talk about the fintech industry in India and the funding related to it. With the lockdown of COVID 19 imposed, the two sectors saw a huge rise, one being the edtech sector and the other being the fintech sector.

The fintech sector is one of the highest growing technology sectors in the country, where it is bringing change and innovation in various segments and applications like loan payments, stock trading, and credit scoring.

As of the year 2020, the fintech industry of the country saw the highest adoption rate, which is 87% and now it has become the biggest destination for investment deals around the world. Talking about the global average rate, which is 64%, thus showing that India has moved to a very high place in this sector.

The top fintech destinations of the country are Mumbai, Gurugram, Bengaluru, New Delhi, and Hyderabad. Mumbai and Bengaluru together show 42% of the fintech hub of the country.

The market value of the fintech sector in the year 2020 was around INR 2.30 trillion and is expected to grow at a CAGR of 24.56% between the years 2021 and 2026.

The credit for the growth of the fintech industry in the country goes to the increased usage of the internet and smartphones and an increase in the partnership between fixed service incumbents and fintech companies. 

The other major movements like Demonetization, promotion of digital payments, and the initiative of Digital India and cashless economy have increased the use of the fintech industry. The major players of the fintech industry are PhonePe, One97Communications Limited- which is of the Paytm, One Mobikwik Systems Private Limited, and PolicyBazar.com. 

Talking about the impact of COVID 19 on the fintech sector, it has sought a huge benefit from it. People started adopting digital payments and the market saw around a 40% rise in the number of digital payments and transactions in the lockdown. People were scared of public gatherings and thus moved from traditional systems to cashless and digital payment methods. Even the Insurtech segment saw a huge and impressive rise, as people were scared for their lives and thus bought life and health insurance. 

The country now has more than 17 fintech startups that are converted into unicorns. There are many initiatives the government has initiated in order to bring a revolution and a change in the financial economy. Some of the key initiatives are-
Jan Dhan Yojana
Financial Literacy
E-RUPI
India Stack 

Let us now talk about the funding of a fintech startup that has taken place recently. 

Announcement of funding of a fintech startup 

The startup, Tyke, has raised a funding of USD 1.5 million, as announced on December 22, 2021. This round of funding was the pre-seed round of funding and was led by 9Unicorns, Better Capital, Ratio Ventures, and Venture Catalysts.

Many angel investors also participated in this round of funding. The angel investors were Jitendra Gupta, Sweta, and Amish Rau, Varun Mittal, Sandeep Aggarwal, Navin Surya, and Ajay Rajan. 

The startup plans to utilize the funds raised to build products for the companies to make their fundraising activity digital and accessible to all. 

About the fintech startup that has recently received funding 

The startup, Tyke, has been launched this year and has its headquarters in Mumbai. It is engaged in making startup investing look easy. The motto of Tyke is “Making startup investments accessible”. It wants to make private investing instant and accessible. The startup is bringing the founders to a platform where they can raise their businesses and startups from their community. It is bringing community stocks to the founders. It helps them in owning a part of the next big startup and helps them on the way to the top. 

The features provided by the startup for the investors are-
Invest Instantly– From discovering to signing the term sheet, it is completely online and seamless.
KPI Tracking– Review, Monitor, and Track the consolidated portfolio via an easy-to-use dashboard.
Exclusive Community– An exclusive space is created to empower the users to have an enriching investment experience. 

The features provided by the startup for the founders are-
A new way to virality– It allows the founders to let their personal and professional network, partners, and users be a part of their mission. It gives them the opportunity to raise capital from the biggest flagbearers.
Close Deals with Tyke– The powerful Private Deal Management option of the startup enables founders, angel networks, syndicates, and VCs to take their fundraising process online.
User feedbacks made simple- Be it investor updates or user engagement, the startup makes sure to impress its customers. It gives them a platform to experience convenience with its Community and Analytics. 

What has been said about the deal?

The co-founder and the CEO of the startup, Tyke, made a statement saying that the startup is glad and happy to be in partnership with top VCs and angels since its early days.

He then said that they are an important part of the ecosystem, and have shown their belief in the startup, and are the active users of the product of the startup. 

He then said that the startup has introduced Community Rounds, which is a method for the startups to accept smaller investments from their user base, and this has seen impressive and important traction.

He then commented saying that opening up the investor pool to the larger network instead of the seasonal investors gives the opportunity to the company to bring about brand loyalty and increase user retention. 

The startup definitely has something very different to offer. We wish the startup a stroke of good luck and hope that it has a bright and successful future ahead.

Edited and Proofread by Ashlyn Joy