B2B fintech startups are attracting investors than ever before

Last Updated at: November 04, 2019
499
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 around the globe.

The rapid growth of fintech startups in the fast-changing financial sector is increasingly grabbing investors attention. There is a substantial increase in the large-sized business-to-business investment financial service industry over the last two years.

India has emerged as the top Asian destination for Venture Capital-backed fintech in Q1’19 with $286 in funding. In contrast, China-based fintech startups received $192.1 million VC-investment during the same period, according to 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 are also scaling up fast as they come 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 longer time to cater to the requirements of a niche market, but the strong technological advancement takes them to the global platform at a fast rate.

The profitability is higher compared to consumer startups with minimal investment.

When the investors are increasingly looking at 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.

With more and more fintech startups blurring the lines between the technology and financial service by solving the structural problems and availability of finances, many more disruptions are expected in this ecosystem.

Though Investors do not find these businesses attractive always, the interest is growing towards these sectors.

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 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.

B2B fintech startups are attracting investors than ever before

499

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

The rapid growth of fintech startups in the fast-changing financial sector is increasingly grabbing investors attention. There is a substantial increase in the large-sized business-to-business investment financial service industry over the last two years.

India has emerged as the top Asian destination for Venture Capital-backed fintech in Q1’19 with $286 in funding. In contrast, China-based fintech startups received $192.1 million VC-investment during the same period, according to 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 are also scaling up fast as they come 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 longer time to cater to the requirements of a niche market, but the strong technological advancement takes them to the global platform at a fast rate.

The profitability is higher compared to consumer startups with minimal investment.

When the investors are increasingly looking at 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.

With more and more fintech startups blurring the lines between the technology and financial service by solving the structural problems and availability of finances, many more disruptions are expected in this ecosystem.

Though Investors do not find these businesses attractive always, the interest is growing towards these sectors.

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 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.

FAQs

No FAQs found

Add a Question


No Record Found
SHARE