The Bengaluru-based neo-banking startup, epiFi has lately proclaimed that it has secured $13.2 million in a seed funding round. Sequoia India and Ribbit Capital led the funding round of neo-banking startup. The investors that invested in the funding round include Hillhouse Capital, David Velez, the founder of Nubank, and Kunal Shah, Founder & CEO, CRED.
According to the company’s statement, epiFi will use the capital to invest in and build its core technology platform, drive sales and marketing initiatives and expand its technology team.
“Millennials are a digital-first generation who are reshaping the world’s economy, pushing companies to reexamine the way they do business. When it comes to banking, they are looking for a personalized, flexible and transparent experience with minimal friction. Through epiFi, our mission is to provide digital natives with a new-age platform that uses customer insights and deeptech to simplify their banking journey and help them take a big step towards achieving financial freedom,” Sujith Narayanan, Co-founder of epiFi, said in the company’s official statement.
Facilitating Financial and Banking Needs
The Bengaluru-headquartered company aims to create its marks in the competitive financial technology segment. It has an instinctive product that caters to the financial, as well as the banking needs of the customers. The single interfaced-product aids in meeting the demands of digital users by making their finances easier, effectively using their savings and helping them make informed financial choices.
The online platform will operate as a primary hub for customers, offering them with co-branded debit cards and associating all their present financial services products onto a single mobile banking interface.
“Consumer banking, especially key products like savings accounts, haven’t seen true innovation in many years. Sujith and Sumit have demonstrated the ability to change the trajectory of financial services in India with their work on Google Pay in the digital payments space. Their vision of reimaging consumer banking, by providing a modern banking product with EpiFi has the potential to bring a step function change in experience for digitally-savvy consumers,” Shailesh Lakhani, Managing Director, Sequoia Capital India LLP.
epiFi was initiated by Sujith Narayanan and Sumit Gwalani, former top executives at Google Pay (Tez), in May 2019. The fintech startup offers digital banking solutions to online users across the nation. It directs to aid customers in increasing savings, wisely spending and effectively using finance.
epiFi’s main team encompasses of various main leaders from technology organisations like Flipkart, Google, Netflix, and PayPal, with immense experience and prowess in creating consumer-focused technology products.
What Makes Fintech the Next Big Thing After Ecommerce
In recent times, financial technology has enticed several investors and in turn, aspiring entrepreneurs are venturing into the industry. The fintech industry is chiefly divided into four types, that are digital payments, digital lending, banktech, insurtech and wealthtech.
According to InvestIndia’s report, “India is amongst the fastest growing FinTech markets in the world. India ranked the highest globally in the FinTech adoption rate with China. Digital payments value of $65 billion in 2019 is expected to grow at a CAGR of 20 per cent till 2023.”
The report states that the overall transaction value in the Indian fintech market is estimated to jump from approximately $65 billion in 2019 to $140 billion in 2023. India has overtaken China as Asia’s top FinTech funding target market with investments of around $286 million across 29 deals, as compared to China’s $192.1 million across 29 deals in Q1 2019.
In the coming time, the fintech industry will plummet upward and continue to rise owing to its growth drivers--rising disposable income, government initiatives viz. Digital India and UPI, establishing Application Program Interfaces, among others.
Further, InvestIndia informs that the size of fintech market software is $2.40 billion presently. Between 2014 and 2018, $5.70 billion investments have been made in the fintech segment. In the previous year (2018), digital transactions pegged at $14.10 billion were made through UPI. Assessing the international market, fintech segment registers 29 per cent anticipated rate of interest on the projects across the globe.
Other Fintech Players in India
As per NASSCOM’s report, India has the largest number of fintech startups following the United States. Most of these startups are located in Bengaluru as well as Mumbai, preceded by Gurugram, Hyderabad and New Delhi.
The prominent fintech players in India are Paytm, Policy Bazaar, Faircent, Shubh Loans, PayU, Kissht, PhonePe and Lending Kart, among others.
The fintech sector is constantly steaming with investors’ money infusion. Recently, PayU acquired a share in Nexus Ventures Partners-financed fintech company, PaySense. Additionally, PayU will infuse $200 million in the startup in the succeeding two years.