B2B fintech startups are attracting investors than ever before

Last Updated at: May 16, 2020
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B2B Fintech Startups Are Attracting Investors Than Ever Before
B2B Fintech Startups Are Attracting Investors Than Ever Before

Fintech Startups are moving closer and growing further towards B2B financial service innovation and catering to the technological requirements of businesses and companies around the globe.

The rapid climb of fintech startups within the fast-changing financial sector is increasingly grabbing investors’ attention. There is a commendable increase inside the large-sized business-to-business investment financial service industry over the last two years.

Fintech India Q1’19

India has now emerged as the top Asian destination for Venture Capital-backed fintech in Q1’19. This was achieved with the funding of $286 million. In contrast, China-based fintech startups received $192.1 million VC-investment during the exact period, as mentioned in the CB Insights report.

As the online lending gained traction among Micro, Small and Medium Enterprises, the digital SME lenders are in a sweet spot. Now, companies in treasury management, supply chain, equity financing also are scaling up fast as they are included under investor radar. This growth is happening at a time when the Non-banking financial company (NBFC) firms are under credit squeeze, the massive mismatch between assets and liabilities, coupled with numerous misadventure by some of the entities. For example, IL&FS

Get Your Company Registered

These fintech startups take a longer time to cater to the wants of a distinct segment, but the strong technological advancement takes them to the worldwide platform at a quick rate.

Fintech Startup’s Increasing Profits 

The profitability is higher to the consumer-facing startups with minimal investment. Until 2019, the said consumer startups were considered as the apple of investors’ eyes. The investor became interested in these startups. This is why the sudden boost in B2B fintech investments is amusing people. 

When the investors are increasingly focusing on startup’s profitability, customer acquisition cost, and other fundamental metrics before pumping in the capital, B2B fintech companies are seen as a profitable bet then B2C companies. B2B fintech is becoming lucrative with every passing day and this is just the beginning of its growth. It will disrupt the ecosystem.

Many global investors will be more interested in B2B in the coming years considering the expected technological advancements in the financial sector. For instance, more and more fintech startups are coming up and blurring the lines between technology and financial service. They are achieving it by solving the structural problems and the availability of finances.

Though investors don’t find these businesses attractive always, the interest is growing towards these sectors.

Impact of the Pandemic

The current pandemic situation poses a challenge to fin-tech companies. 

According to the experts, in the financial sector, the pandemic may not interrupt the bank operations. Digital banking is always an option. And when fintech is concerned, the consumer-facing counterparts might face challenges. On the flip side, the consumers might also look for different investment options to safeguard themselves in the future. This might be a very fruitful turn for the B2C Fintech. 

The post-pandemic 2020 is going to be very surprising for many sectors. With the current trend of investments and others, many sectors might change their course of operations to navigate through the trying times. The Fintech industry might also be part of this. But WE expect it to survive without none or limited forfeitures of funds and businesses. 

Written by S.DHARANI KUMAR

When can the taxpayer claim refund from electronic cash ledger?

When the taxpayer has done wrong payment under interest head or interest or GST, they can apply for a refund through electronic cash ledger. Understand the procedure for GST registration and GST returns here.

How do banks assess the working capital requirements of borrowers?

Banks rely on the projections that the companies seeking to borrow working capital submit to them to estimate their requirements and sanction the same. More on Income Tax Return Filing.

What does the Aadhaar number have to do with the filing of tax returns?

People who are residing in states like Assam, Meghalaya and Jammu and Kashmir need not submit Aadhar card when applying for PAN card. It is mandatory for others to provide Aadhar card for linking PAN card. Learn more about ISO Certification.

What is the purpose of ISO standards?

The business can make use of certain ISO standards tools which reduces costs by controlling errors and waste and improve productivity. More info on NGO Registration in India.

What is the benefit of NGO?

The main aim of an NGO is to act as a welfare body for improving the status and condition of the less privileged in the society with the funds received from Government and foreign sources. More about Udyog Aadhar Registration.

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B2B fintech startups are attracting investors than ever before

723

Fintech Startups are moving closer and growing further towards B2B financial service innovation and catering to the technological requirements of businesses and companies around the globe.

The rapid climb of fintech startups within the fast-changing financial sector is increasingly grabbing investors’ attention. There is a commendable increase inside the large-sized business-to-business investment financial service industry over the last two years.

Fintech India Q1’19

India has now emerged as the top Asian destination for Venture Capital-backed fintech in Q1’19. This was achieved with the funding of $286 million. In contrast, China-based fintech startups received $192.1 million VC-investment during the exact period, as mentioned in the CB Insights report.

As the online lending gained traction among Micro, Small and Medium Enterprises, the digital SME lenders are in a sweet spot. Now, companies in treasury management, supply chain, equity financing also are scaling up fast as they are included under investor radar. This growth is happening at a time when the Non-banking financial company (NBFC) firms are under credit squeeze, the massive mismatch between assets and liabilities, coupled with numerous misadventure by some of the entities. For example, IL&FS

Get Your Company Registered

These fintech startups take a longer time to cater to the wants of a distinct segment, but the strong technological advancement takes them to the worldwide platform at a quick rate.

Fintech Startup’s Increasing Profits 

The profitability is higher to the consumer-facing startups with minimal investment. Until 2019, the said consumer startups were considered as the apple of investors’ eyes. The investor became interested in these startups. This is why the sudden boost in B2B fintech investments is amusing people. 

When the investors are increasingly focusing on startup’s profitability, customer acquisition cost, and other fundamental metrics before pumping in the capital, B2B fintech companies are seen as a profitable bet then B2C companies. B2B fintech is becoming lucrative with every passing day and this is just the beginning of its growth. It will disrupt the ecosystem.

Many global investors will be more interested in B2B in the coming years considering the expected technological advancements in the financial sector. For instance, more and more fintech startups are coming up and blurring the lines between technology and financial service. They are achieving it by solving the structural problems and the availability of finances.

Though investors don’t find these businesses attractive always, the interest is growing towards these sectors.

Impact of the Pandemic

The current pandemic situation poses a challenge to fin-tech companies. 

According to the experts, in the financial sector, the pandemic may not interrupt the bank operations. Digital banking is always an option. And when fintech is concerned, the consumer-facing counterparts might face challenges. On the flip side, the consumers might also look for different investment options to safeguard themselves in the future. This might be a very fruitful turn for the B2C Fintech. 

The post-pandemic 2020 is going to be very surprising for many sectors. With the current trend of investments and others, many sectors might change their course of operations to navigate through the trying times. The Fintech industry might also be part of this. But WE expect it to survive without none or limited forfeitures of funds and businesses. 

Written by S.DHARANI KUMAR

When can the taxpayer claim refund from electronic cash ledger?

When the taxpayer has done wrong payment under interest head or interest or GST, they can apply for a refund through electronic cash ledger. Understand the procedure for GST registration and GST returns here.

How do banks assess the working capital requirements of borrowers?

Banks rely on the projections that the companies seeking to borrow working capital submit to them to estimate their requirements and sanction the same. More on Income Tax Return Filing.

What does the Aadhaar number have to do with the filing of tax returns?

People who are residing in states like Assam, Meghalaya and Jammu and Kashmir need not submit Aadhar card when applying for PAN card. It is mandatory for others to provide Aadhar card for linking PAN card. Learn more about ISO Certification.

What is the purpose of ISO standards?

The business can make use of certain ISO standards tools which reduces costs by controlling errors and waste and improve productivity. More info on NGO Registration in India.

What is the benefit of NGO?

The main aim of an NGO is to act as a welfare body for improving the status and condition of the less privileged in the society with the funds received from Government and foreign sources. More about Udyog Aadhar Registration.

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