Financial inclusion has been a critical area of focus in India, aiming to provide affordable and accessible financial services to the unbanked and underbanked population. The advent of technology has catalyzed this movement, with numerous startups innovating to bridge the financial gap. Here, we explore the top 10 financial inclusion startups in India making significant strides in this domain.
1. Paytm
Paytm, founded by Vijay Shekhar Sharma in 2010, started as a mobile recharge platform and has grown into a comprehensive digital wallet and e-commerce giant. It offers a range of financial services including digital payments, savings accounts, loans, insurance, and wealth management, significantly enhancing financial accessibility across both urban and rural areas in India.
| Attribute | Details |
|---|---|
| Founders | Vijay Shekhar Sharma |
| Founded | 2010 |
| Headquarters | Noida |
| Key Services | Digital payments, e-commerce, loans, insurance, wealth management |
| Target Audience | Urban and rural consumers |
| Website | paytm.com |
Founders: Vijay Shekhar Sharma
Founded: 2010
Paytm started as a mobile recharge platform and has since evolved into a comprehensive digital wallet and e-commerce giant. It offers a wide range of financial services, including payments, savings accounts, loans, insurance, and wealth management. Paytm’s user-friendly app has significantly contributed to increasing financial accessibility across urban and rural areas.
2. Airtel Payments Bank
Launched in 2016 by Bharti Enterprises, Airtel Payments Bank focuses on providing basic banking services like savings accounts, fixed deposits, and remittance services. Leveraging Airtel’s extensive telecom network, it aims to increase financial inclusion in underserved rural and urban populations.
| Attribute | Details |
|---|---|
| Founders | Sunil Bharti Mittal (Bharti Enterprises) |
| Founded | 2016 |
| Headquarters | New Delhi |
| Key Services | Savings accounts, fixed deposits, remittance services |
| Target Audience | Underserved rural and urban populations |
| Website | airtel.in/bank |
Founders: Sunil Bharti Mittal (Bharti Enterprises)
Founded: 2016
Airtel Payments Bank, a subsidiary of Bharti Airtel, aims to provide banking services to the underserved. It offers savings accounts, fixed deposits, and remittance services. Leveraging Airtel’s extensive telecom network, it has opened millions of accounts, particularly in rural regions where traditional banks have limited reach.
3. Jio Payments Bank
A joint venture between Reliance Industries and State Bank of India, Jio Payments Bank was founded in 2018. It integrates digital banking with Jio’s telecom services, offering savings accounts, money transfers, and bill payments, particularly targeting remote and underserved areas.
| Attribute | Details |
|---|---|
| Founders | Mukesh Ambani (Reliance Industries) |
| Founded | 2018 |
| Headquarters | Mumbai |
| Key Services | Savings accounts, money transfers, bill payments |
| Target Audience | Remote and underserved areas |
| Website | jio.com |
Founders: Mukesh Ambani (Reliance Industries)
Founded: 2018
Jio Payments Bank, a joint venture between Reliance Industries and State Bank of India, focuses on creating a cashless economy. It integrates digital banking services with Jio’s telecom services, offering easy access to savings accounts, money transfers, and bill payments. Its extensive network supports financial inclusion, particularly in remote areas.
4. Khatabook
Founded in 2019 by Ravish Naresh and his team, Khatabook provides a digital ledger solution for small and medium-sized enterprises (SMEs). By digitizing traditional bookkeeping, it helps small business owners manage their accounts more efficiently, contributing to their economic growth.
| Attribute | Details |
|---|---|
| Founders | Ravish Naresh, Trishneet Arora, Durgesh Kaushik, Mohit Daga |
| Founded | 2019 |
| Headquarters | Bengaluru |
| Key Services | Digital ledger solutions for SMEs |
| Target Audience | Small and medium-sized enterprises (SMEs) |
| Website | khatabook.com |
Founders: Ravish Naresh, Trishneet Arora, Durgesh Kaushik, and Mohit Daga
Founded: 2019
Khatabook provides digital ledger solutions for small and medium-sized enterprises (SMEs). By digitizing traditional bookkeeping, it enables small business owners to manage their accounts efficiently. Khatabook has empowered numerous merchants with better financial management tools, contributing to their economic growth.
5. Cred
Established by Kunal Shah in 2018, Cred rewards users for timely credit card bill payments. It also offers personal loans, rent payments, and e-commerce services. Cred’s innovative approach incentivizes responsible financial behavior, promoting financial stability among its users.
| Attribute | Details |
|---|---|
| Founder | Kunal Shah |
| Founded | 2018 |
| Headquarters | Bengaluru |
| Key Services | Credit card bill payments, personal loans, rent payments, e-commerce |
| Target Audience | Creditworthy individuals |
| Website | cred.club |
Founder: Kunal Shah
Founded: 2018
Cred is a unique platform that rewards users for timely credit card bill payments. While its primary focus is on creditworthy individuals, it also offers features like personal loans, rent payments, and e-commerce. Cred’s innovative approach incentivizes responsible financial behavior, indirectly promoting financial stability and inclusion.
6. Razorpay
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay provides a comprehensive payment gateway solution that facilitates online payments for businesses. Its suite of products includes payment acceptance, disbursals, and credit services, empowering numerous small businesses to go digital.
| Attribute | Details |
|---|---|
| Founders | Harshil Mathur, Shashank Kumar |
| Founded | 2014 |
| Headquarters | Bengaluru |
| Key Services | Payment gateway, payment acceptance, disbursals, credit services |
| Target Audience | Online businesses and SMEs |
| Website | razorpay.com |
Founders: Harshil Mathur, Shashank Kumar
Founded: 2014
Razorpay is a comprehensive payment gateway solution that facilitates online payments for businesses. Its suite of products includes payment acceptance, disbursals, and credit services. Razorpay has empowered countless small businesses to go digital, ensuring they can participate in the modern economy.
7. Zerodha
Launched in 2010 by Nithin and Nikhil Kamath, Zerodha revolutionized stock trading in India by offering low-cost brokerage services. It democratized access to financial markets, allowing individuals from various economic backgrounds to invest in stocks, mutual funds, and bonds, while also promoting financial literacy.
| Attribute | Details |
|---|---|
| Founders | Nithin Kamath, Nikhil Kamath |
| Founded | 2010 |
| Headquarters | Bengaluru |
| Key Services | Stock trading, mutual funds, bonds |
| Target Audience | Retail investors |
| Website | zerodha.com |
Founders: Nithin Kamath, Nikhil Kamath
Founded: 2010
Zerodha revolutionized stock trading in India by offering low-cost brokerage services. It democratized access to financial markets, allowing individuals from various economic backgrounds to invest in stocks, mutual funds, and bonds. Zerodha’s educational initiatives also promote financial literacy, further enhancing financial inclusion.
8. Fino Payments Bank
Founded in 2017 and led by CEO Rishi Gupta, Fino Payments Bank focuses on providing basic banking services like savings accounts, current accounts, and remittance services. Its extensive network in rural and semi-urban areas ensures financial services reach the grassroots level.
| Attribute | Details |
|---|---|
| Founders | Rishi Gupta (CEO), Manish Khera |
| Founded | 2017 |
| Headquarters | Navi Mumbai |
| Key Services | Savings accounts, current accounts, remittance services |
| Target Audience | Rural and semi-urban populations |
| Website | finobank.com |
Founders: Rishi Gupta (CEO), Manish Khera
Founded: 2017
Fino Payments Bank focuses on providing basic banking services to the underbanked population. It offers savings accounts, current accounts, and remittance services. Fino’s extensive network of banking points in rural and semi-urban areas ensures that financial services reach the grassroots level.
9. Lendingkart
Established in 2014 by Harshvardhan Lunia and Mukul Sachan, Lendingkart provides working capital loans to small and medium-sized enterprises (SMEs). Its digital platform uses advanced analytics to assess creditworthiness and enable quick loan disbursements without collateral, supporting the growth of SMEs.
| Attribute | Details |
|---|---|
| Founders | Harshvardhan Lunia, Mukul Sachan |
| Founded | 2014 |
| Headquarters | Ahmedabad |
| Key Services | Working capital loans |
| Target Audience | Small and medium-sized enterprises (SMEs) |
| Website | lendingkart.com |
Founders: Harshvardhan Lunia, Mukul Sachan
Founded: 2014
Lendingkart provides working capital loans to SMEs, addressing the critical need for business financing. Its digital platform assesses creditworthiness using advanced analytics, enabling quick loan disbursements without collateral. Lendingkart’s services empower small businesses, contributing to economic development and financial inclusion.
10. BankBazaar
Founded in 2008 by Adhil Shetty and his team, BankBazaar is an online financial marketplace that simplifies the process of finding and applying for financial products like loans, credit cards, and insurance. By offering transparent comparisons and digital application processes, it enhances access to financial products for a broad audience.
| Attribute | Details |
|---|---|
| Founders | Adhil Shetty, Arjun Shetty, Rati Shetty |
| Founded | 2008 |
| Headquarters | Chennai |
| Key Services | Financial product marketplace (loans, credit cards, insurance) |
| Target Audience | General consumers |
| Website | bankbazaar.com |
Founders: Adhil Shetty, Arjun Shetty, Rati Shetty
Founded: 2008
BankBazaar is a financial marketplace that simplifies the process of finding and applying for financial products such as loans, credit cards, and insurance. Its platform provides comparisons and digital application processes, making financial products more accessible to a broader audience. By demystifying financial services, BankBazaar promotes financial inclusion and literacy.
FAQs about Financial Inclusion Startups in India
1. What is financial inclusion?
Answer: Financial inclusion refers to the process of ensuring that all individuals and businesses have access to useful and affordable financial products and services that meet their needs, such as transactions, payments, savings, credit, and insurance, delivered in a responsible and sustainable way.
2. Why are financial inclusion startups important in India?
Answer: Financial inclusion startups play a crucial role in bridging the gap between the unbanked/underbanked population and formal financial services. They leverage technology to provide affordable, accessible, and convenient financial solutions, thereby promoting economic growth, reducing poverty, and enhancing overall financial stability.
3. How do Paytm and other digital wallets contribute to financial inclusion?
Answer: Paytm and other digital wallets offer easy-to-use platforms for digital payments, allowing users to perform transactions without needing a traditional bank account. They facilitate mobile recharges, utility bill payments, online shopping, and money transfers, making financial services accessible to a broader population, including those in rural areas.
4. What are payments banks, and how do they help in financial inclusion?
Answer: Payments banks are a new category of banks in India, aimed at increasing financial inclusion by providing basic banking services like savings accounts, remittances, and bill payments without lending services. Examples include Airtel Payments Bank and Jio Payments Bank. They operate with lower costs and broader reach, especially in underserved areas.
5. How does Khatabook assist small businesses?
Answer: Khatabook offers a digital ledger app that helps small businesses and shop owners manage their accounts more efficiently. It digitizes traditional bookkeeping, tracks transactions, and sends payment reminders, thereby improving financial management and helping small businesses thrive.
6. What is unique about Cred’s approach to financial services?
Answer: Cred rewards users for timely credit card bill payments, promoting responsible financial behavior. Additionally, it offers personal loans, rent payment services, and access to premium products and experiences, enhancing the overall financial health of its users.
7. How do platforms like Razorpay support online businesses?
Answer: Razorpay provides comprehensive payment gateway solutions that allow online businesses to accept, process, and disburse payments seamlessly. It supports various payment modes, including credit/debit cards, UPI, and net banking, enabling businesses to cater to a wide customer base.
8. What investment opportunities does Zerodha provide to retail investors?
Answer: Zerodha offers low-cost brokerage services, allowing retail investors to trade in stocks, mutual funds, bonds, and other financial instruments. It democratizes access to financial markets and provides educational resources to promote financial literacy among investors.
9. How do startups like Lendingkart provide loans to SMEs?
Answer: Lendingkart uses advanced analytics and big data to assess the creditworthiness of small and medium-sized enterprises (SMEs) and provides them with quick, collateral-free working capital loans. This helps SMEs manage cash flow and grow their businesses without traditional banking constraints.
10. What role does BankBazaar play in simplifying access to financial products?
Answer: BankBazaar is an online marketplace that allows users to compare and apply for financial products like loans, credit cards, and insurance policies. It simplifies the process of finding the best financial solutions by providing transparent comparisons and digital application processes, enhancing access to financial products for a broader audience.
These startups are at the forefront of India’s financial inclusion revolution. By leveraging technology, they are breaking down barriers to financial services, ensuring that even the most marginalized sections of society can participate in the economy. Their innovative solutions are not only transforming the financial landscape but also contributing to the broader goal of inclusive economic growth in India.