Srikanth Rajagopalan’s Post

💰Global Funding To #FinancialServices Slowed Down In The Past 5 Quarters According to recent Crunchbase data, global funding to private companies in financial services has slowed significantly in the past five quarters. In the second quarter of 2024, financial services companies raised $9.7 billion, up a bit year over year and up 17% quarter over quarter from the $8.3 billion invested in the sector in the same quarter in 2023. However, funding for the past quarter was down 75% from the market peak of Q2 2021, when more than $40 billion was invested. Over the past five quarters, funding to financial services companies trailed below $10 billion each quarter, based on an analysis of Crunchbase data. These five quarters show the lowest funding amounts to the sector since Q1 2017, which saw $9.3 billion in funding. While every sector was down from the funding heights of 2021, financial services has shown a greater decline since the slowdown. By comparison, overall global funding this past quarter was down 59% from the peak quarter in 2021. Financial services is the leading sector for unicorns, based on an analysis of Crunchbase data, with over 390 companies on The Crunchbase Unicorn Board. These include Ant Group from China, as well as payments company Stripe, and neobanks Revolut and Chime. Those last three fintech companies could look to list in the coming year. Despite the slower funding environment, there are a number of fintechs that missed the IPO window in 2021 and have spent the last two years refactoring their businesses. Stripe claims it processed $1 trillion in payments in 2023, and Revolut’s 2023 revenue grew 95% year over year to $2.2 billion, with an increase of 12 million new customers. Read more: https://lnkd.in/dcPWTnA8

Fuel Your Fintech Dreams in Gift City, India 🚀🌐 Welcome to Gift City, where Fintechs sculpt cross-border transactions, ignite remittances, and redefine financial services. The IFSCA license may puzzle you, but the perks in this thriving hub complete the picture. 🌍 Tax Haven: Accelerate Growth -10-year Tax Holiday: Save millions with a 30% corporate tax exemption for innovation and top talent. - Zero GST on IFSC Transactions: Redirect funds from the burdensome 18% GST to innovation and market expansion. - Streamlined Compliance: Cut compliance costs by up to 20%, freeing resources for groundbreaking innovations. 🚀 Regulatory Sandbox: Turbocharge Innovation - Fast-track Approvals: Enter markets four times faster with GIFT City’s single-window clearance. - FinTech Sandbox: Experiment and iterate 90% faster, identifying winning strategies before launch. - Agile Regulations: IFSCA keeps pace with fintech evolution, embracing a future-forward mindset. 💰 Global Gateway: Unleash Funding Potential - Tap into a $40 Trillion Wealth Pool: GIFT City opens doors to global investors, transforming your startup into a global force. - Attract World-class Talent: 100% tax exemption for foreign employees gives a competitive edge in talent acquisition. - Minimize FX Hedging Costs: Direct access to foreign currency markets cuts conversion costs by 15%. 🌐 Building a Thriving Ecosystem: Beyond Numbers - Enhanced Brand Value: GIFT City's innovation hub enhances brand prestige by up to 30%, attracting customers and investors globally. - World-class Infrastructure: GIFT City's seamless operational environment boosts efficiency by 20%. - High Quality of Life: Modern amenities and top-notch schools contribute to a 15% potential increase in overall output. 🌿 GIFT City vs. the Competition: Go Green, Not Grey - Singapore: Enjoy similar tax benefits without the 40% higher cost of living and operational expenses. - UK: GIFT City's streamlined processes reduce time and resource consumption by 50%. 💼 Partner with Paycompliance for Regulatory Success Paycompliance supports Fintechs in obtaining and maintaining an IFSCA license in Gift City. Our team ensures comprehensive guidance, tailored support, and ongoing monitoring for continuous compliance. 🚀 Conclusion: Thrive with a Fintech License in Gift City Discover the full story and unlock the potential. Read the complete blog on our site. 🌐🚀💼 https://lnkd.in/dQJFERge #GiftCityFintech #RegulatorySuccess #GlobalFinanceInnovation #FintechRevolution #RegulatoryExcellence #GiftCityOpportunities #FinancialInnovationHub #TechAdvancements #StartupSuccess #TaxSavings #CrossBorderTransactions #FutureOfFinance #GiftCityEcosystem #InnovateInIndia #FinancialServicesInnovation #StreamlinedCompliance #GlobalFundingHub

This is the embedded finance play I didn't expect. Brex cards Embedded in Navan Travel experience. Interesting! Here's why 👇 Brex and Navan have partnered to embed Brex virtual cards in the Navan user experience. The Brex cards can support local currency in 50+ countries, saving on FX fees. The combined solution also creates a single hub for reconciliation. 🧠 This takes embedded finance to a place I didn't expect it. I don't know why, but I just didn't imagine embedding the expense card into the travel portal. But creating a virtual card for every trip makes so much sense the more you think about it. 🧠 The reality is that most growth companies have Navan PLUS an expenses card. Whether they're using Ramp, Brex, Mercury, or something else, they're probably also using Navan. Where a legacy enterprise would use Amex Travel + SAP Concur + a corporate card, modern ones could now use Navan + Brex. 🧠 This competes directly with Ramp and Ramp travel. Ramp is the darling of Fintech, one of the fastest-growing companies in the world. However, if they have an Achilles heel, they can't serve global enterprises as well as Brex. Navan + Brex is a slick solution for that client profile. 🧠 The age of Fintech on Fintech partnerships is upon us. Navan's pivot to "bring your own card" saw them do a partnership with Citi, but the depth of integration with Brex is something special. 🧠 Bonus for the embedded finance nerds. Brex's T+C's now note that Fifth Third Bank provides the Brex card and that it "also" provides cards with Sutton. Newline by Fifth Third is the quiet winner in the sponsor bank chaos of the last 12 months. Shout out to those guys. In fact, their T+Cs read like recent beneficiaries of the chaos. Column + Fifth Third.

FINTECH (Financial Technology) companies use technology to improve and automate financial services, making them more accessible, efficient, and cost-effective. They generate revenue through various channels, including: 1. _Transaction fees_: Charging a small fee for each transaction, such as payment processing or money transfers. Example: Paytm, a popular Indian FINTECH company, generates revenue by charging a transaction fee for payment processing. 1. _Interest income_: Earning interest on loans or investments. Example: Lending Club, a peer-to-peer lending platform, generates revenue by earning interest on loans. 1. _Subscription fees_: Charging customers a recurring fee for access to financial tools or services. Example: Credit Karma, a personal finance platform, generates revenue by offering free credit scores and charging for premium services. 1. _Advertising_: Displaying targeted ads to users. Example: NerdWallet, a personal finance website, generates revenue by displaying ads from financial institutions. 1. _Data analytics_: Selling anonymized data insights to financial institutions. Example: Plaid, a financial data platform, generates revenue by selling data insights to banks and fintech companies. 1. _Partnerships and collaborations_: Partnering with financial institutions to offer co-branded products or services. Example: Stripe, a payment processing company, generates revenue by partnering with banks to offer payment processing services. 1. _Software licensing_: Licensing financial software to institutions. Example: FIS, a financial software company, generates revenue by licensing software to banks and financial institutions. These are just a few examples of how FINTECH companies generate revenue. The specific revenue streams often depend on the company's business model, products, and services. information purpose only, not to take any decisions

It's all about Embedded Finance nowadays!!! (I am not forgetting AI but I am trying to make a point here 😁) In the past week alone, I observed a fascinating trend: I personally heard four startups from varied fields such as computing, tele-driving, sports management, and marketplace dispute resolution, each emphasizing on their plans to integrate embedded finance—ranging from payments and lending to insurance and investment products—into their apps. They were quite excited about it and meant it as a competitive advantage. Additionally, I've witnessed two venture capitalists pressuring their existing or even potential investees to incorporate embedded finance into their offerings. While the buzz around embedded finance is understandable, given its potential to streamline transactions and enhance customer experiences, it's crucial for founders to remain cautious. The allure of embedding financial services might seem like an instant competitive edge, but it's imperative to remain focused at least during early stages. With the plethora of fintech providers out there embedded finance is rather a commodity and NOT a competitive advantage—unless, of course, you're the fintech offering in these services. The primary focus for startups should be to excel in their domain, delivering unparalleled value and experiences to their users. Founders, remember, the key to long-term success lies in your original vision and commitment to solving the unique challenges within your industry. Meanwhile, venture capitalists should encourage their investments to sharpen that focus, rather than diverting it. Integrating features such as embedded finance should not distract from a company's core objectives nor should it become a determining factor for investment. The goal is to enhance your offering without losing sight of what truly sets your startup apart. Let's ensure that innovation serves to bolster our primary mission, not detract from it #EmbeddedFinance, #FintechInnovation, #StartupStrategy, #VentureCapital, #FinancialServices, #TechStartups,#Fintech, #Payments, #InnovationManagement, #BusinessModel #CustomerExperience, #DigitalTransformation https://lnkd.in/dqtATn9y

PayFac-as-a-Service looks to solve a lot of these exact problems! The rewards of the PayFac model were clear - ✅monetized payments ✅frictionless digital onboarding ✅quick commissions payouts But… The process of becoming a PayFac is too labor intensive, expensive and high risk for most software vendors. Tilled alleviates these barriers and allows our partners to focus on building their core business, not payments. If you’re in the payments space and not following Dwayne Gefferie, you’re missing a masterclass in educational payments content! 🙌 #payments #startups

xalts acquires Contour Networks, Inc. in a push for digital trade and finance innovation. Singapore-based startup #Xalts has announced the acquisition of the digital trade platform #Contour Network. This strategic acquisition, valued in the high single millions, combines cash and stock to bring together two formidable players in the digital finance and trade ecosystem. Founded just 18 months ago by industry veterans Ashutosh Goel and Supreet Kaur, Xalts has rapidly positioned itself as a key innovator in the #fintech space. The company enables financial institutions to develop and manage blockchain-based applications efficiently. This capability addresses a significant gap in the market, particularly for large financial institutions and businesses that struggle with managing diverse financial products and processes across various teams and departments. Contour Network, established in 2017 by a consortium of eight leading banks including HSBC, Standard Chartered, and BNP Paribas, has made significant strides in digitizing trade finance. It boasts a network of 22 banks and over 100 global businesses, including industry giants like Tata Group, Rio Tinto, and SAIC. This platform has been at the forefront of transforming trade finance, making it more accessible and streamlined for participants worldwide. The acquisition by Xalts marks a pivotal moment in the industry, aiming to revolutionize how banks, corporations, and logistics companies engage with digital trade and supply chain finance. By integrating Contour's network with Xalts' platform, the combined entity will offer a robust infrastructure that facilitates the creation and sharing of blockchain-based applications. This integration promises to significantly reduce the friction and inefficiencies currently plaguing global trade, which is poised to reach $30 trillion by 2030. Xalts' vision extends beyond simplifying app development for financial institutions. The startup is set to empower banks and logistics firms to provide their customers with embedded trade and supply chain applications through a single, unified platform. This approach not only enhances connectivity between banks and their corporate clients but also opens up new avenues for B2B finance solutions, including trade finance and lending. An illustrative example of the potential impact of this acquisition is the ability for a global fast fashion conglomerate to facilitate financing for its vendors in Vietnam and Bangladesh, even in the absence of the conglomerate's bank in those countries. Through Xalts' integrated app platform, vendors can access financing with just one click, showcasing the transformative power of digital finance solutions in supporting global trade networks. The article on TechCrunch in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

Money and Payments Services Regulatory Regime in the UAE In the UAE, the regulatory framework for payment and stored value (SV) services is overseen by the (i) Central Bank of the UAE -CBUAE (ii) Dubai Financial Services Authority – DFSA, and (iii) Financial Services Regulatory Authority - FSRA. Any entity offering payment and stored value services in the UAE needs to obtain the necessary regulatory approvals and licenses from the regulators to operate legally. Here are some key regulatory licenses and approvals related to payment services in the UAE: ·      RPSP License CBUAE: The Retail Payment Service Provider (RPSP) License issued by the CBUAE authorizes entities to offer payment services to retail customers within the UAE. This license is part of the CBUAE's regulatory framework designed to ensure the safety, security, and efficiency of retail payment systems in the country. ·      SVF License CBUAE: CBUAE regulates Stored Value Facility (SVF) licenses, which authorize entities to issue electronic money and provide related services within the UAE. ·      CAT 3C License DFSA: A Category 3C license authorizes firms to conduct specific regulated financial services activities within the DIFC. The activities permitted under a Cat 3C license are typically defined by the DFSA and may include activities such as providing money services, arranging deals in investments, advising on financial products, or managing assets. ·      CAT 3D License DFSA: A Category 3D license authorizes firms to conduct specific regulated financial services activities within the DIFC. The activities permitted under a Cat 3D license are typically defined by the DFSA and may include activities such as providing money services, funds transfer and remittances. ·      CAT 3C License FSRA: A Category 3C Authorised Person may be authorised to conduct other Regulated Activities, but it is the authorisation for Managing Assets, Managing a Collective Investment Fund, Providing Custody other than for a Fund or Managing a Profit Sharing Investment Account which is a PSIAr, Providing Trust Services (where it is acting as a trustee in respect of at least one express trust) or Providing Money Services. It's important to note that the specific requirements and procedures for obtaining these licenses may vary depending on the type of payment services offered and the regulatory guidelines set by the regulators. Additionally, compliance with AML and KYC regulations is a key aspect of obtaining and maintaining these licenses. Entities interested in operating payment services in the UAE should consult with legal advisors familiar with the local regulatory framework and work closely with the regulators to ensure compliance with all licensing requirements. For any support in relations to payments services licenses in the UAE, please reach out to [email protected] or message us through contact form at our website https://finbler.com/ #CBUAE #RPSP #SVF #PAYMENTS #FINTECH #CARDS #DFSA #FSRA

Fintech Rundown: A Rapid Review of Weekly News We’ve entered the first full week of March. Layoff activity has cooled slightly (but has not stopped), and fintech news is heating up. Here’s your weekly news rundown. Check back for real-time updates on how the fintech landscape evolves this week. Payments TrueNorth selects Brim to help it bring small business and commercial credit card-as-a-service technology to banks, fintechs, and others in its professional services organization. Xero to embed a billpay solution from BILL into the Xero platform. wagely has secured $23 million in new funding. allpay partners with automation expert Voicescape. Banking-as-a-Service Synctera raises $18.6 million in a Series A extension round to fuel international expansion. Fraud and Security G2 Risk Solutions and Mastercard join forces to help merchant acquirers reduce transaction fraud. Lending Embedded lending platform ChargeAfter launches The Lending Hub to help banks deliver lending solutions for merchants and their customers. Credit Unions Reseda Group invests $6.2 million in 8 fintechs: CU LIFT Fund, CURevl, Debbie, Origence, Members Mobile, Ranqx, Ascent and Changed. Photo by Leeloo The First The post Fintech Rundown: A Rapid Review of Weekly News appeared first on Finovate. https://lnkd.in/gm2ma5UZ via Finovate https://finovate.com/ March 4, 2024 at 10:54AM

Under the Surface: the Embedded Finance Opportunity For as long as we’ve had banks, they’ve been fundamentally separate from business. Banks are singular institutions, operating in their own buildings — away from where we run our companies. Finance is available, but you need to actively seek out and engage with it. This separation makes sense. You can’t have (and arguably wouldn’t want) a physical bank in every office. Of course, this isn't without its headaches. Business may be 24/7, but when the bank closes, everyone waits. At best, commerce is delayed; at worst, transactions are put off entirely. As work has increasingly moved from physical spaces and into software, however, many are rethinking this separation. A handful of early movers, such as Shopify and Square, took the first steps, building the functionality of banks into their platforms — transforming the market and laying the groundwork for millions in VC investment. Now, a growing constellation of companies are embedding finance into the very core of our organizations. The business case is compelling. The core is where finance is the easiest; after all, it’s where everything is already happening. It’s also where finance knows the most. Unlike a bank, which must learn your business on the spot, Shopify knows every transaction your business has ever made. Who do you think can better or more rapidly underwrite you? The challenge, of course, is how quickly we can evaluate risk, drawing on internal data as well as that held by third parties. Banks are slow for a reason; this analysis takes time. Traditionally, bank personnel would weigh some combination of incomplete data and (perhaps) a personal relationship for days or weeks before making a lending decision. Now, software can pull on a variety of sources instantly, greatly clarifying risk and making finance a boost rather than a bottleneck. To be fair, this kind of analysis is nothing new. The credit bureaus have been doing it for decades. The sea change, however, is the incredible rise of the embedded finance ecosystem, which finally makes possible the ability to leverage these data programmatically - and in real-time. We think about this ecosystem as an iceberg - while a merchant has a seamless experience with an embedded loan "above the surface," there's a much larger world below making that experience possible: It’s hard to overstate the momentum in this space - or the mission, which increasingly looks less like old school finance and more like building the future of commerce. Consider how software (and particularly the internet) revolutionized shopping. No more waiting for stores to open. Always finding what you needed. The result? Less friction, more commerce. Source Activant Capital #embeddedfinance #fintech #payments Arjun Vir Singh Paolo Sironi Nicolas Pinto Efi Pylarinou Theodora Lau Arthur Bedel 💳 ♻️ Nafis Alam Monica Jasuja Anna Maj