Since 2014, fintech venture investments have increased threefold. The progressive decline of consumers’ confidence in conventional money makers and how innovative technology firms are offering financial services are the major reasons behind the increase. 500 Startups, a startup accelerator and venture capital seed fund company, has added two $25 million funds centered on early-stage fintech firms in India. The micro-funds are 500 Kulfi and 500 Fintech. In the past six years, 500 Startups has already added more than 80 fintech investments to its portfolio, including the ones in Flywire and CreditKarma.Sheel Mohnot will lead 500 Fintech, while Pankaj Jain will be responsible for 500 Kulfi. They are both Partners at 500 Startups. Mohnot shared his insights on the 500’s blog, plus how the conventional financial institutions seem to be innovating at a slower pace. He also shed light on the significance of the growth of smartphones in reducing costs connected to various financial services. In an interview done by techcrunch.com with Dave McClure, he said that Fintech has a huge potential in particular with institutions serving minorities, emerging markets, women and millenials, even though it is currently being “oversubscribed in certain areas”.
Aside from boosting Fintech parallel investments in India, the 500 Kulfi fund will also focus on Data Analytics, Health & Wellness, EdTech, SaaS/SMB, Content investments in the regions of India, such as Bangladesh and Sri Lanka. The fund is a welcome addition to the other 500 microfunds in the Indian region.