Fintech Watch | Fintech News Roundup For The Week Of October 2, 2023 presents an insightful roundup of pivotal developments in the fintech industry this week, spotlighting major players and their impactful deals.

This week, startup Fintech funding in India recorded a 68% surge in the July-September quarter, according to data from Tracxn. This is the highest level of fintech funding in India since the January-March quarter of 2022. The surge in fintech funding is attributed to a number of factors, including the increasing adoption of digital payments, the rising demand for financial services from underserved populations, and rapid technological advancements. Fintech players are using innovative technologies to develop new products and services that are more accessible, affordable, and convenient for consumers.

Here’s a compilation of the top news from the last week that made headlines:

CRED’s Success and Expansion:

CRED, India’s leading credit card management platform, is having a banner week. The company has launched a new credit score tracker feature, partnered with HDFC Bank to offer new rewards, and raised $100 million in new funding.

CRED’s partnership with HDFC Bank is another win for users. It will allow CRED users to earn HDFC Bank Reward Points on their credit card payments, which can be redeemed for a variety of products and services. The new funding round will allow CRED to expand its product offerings and reach new markets. This is good news for users, as it means that they can expect to see new and innovative features from CRED in the future.

Slice and IndusInd Bank Merger:

The merger of Slice, an Indian fintech unicorn, with IndusInd Bank, is a significant development for the Indian financial services industry. It is the first time that a fintech company has been allowed to merge with a bank in India. The merger is expected to be completed by the end of the year.

The merger is likely to benefit both Slice and IndusInd Bank. Slice will gain access to IndusInd Bank’s customer base and infrastructure. IndusInd Bank will gain access to Slice’s technology and expertise in the digital lending space.

The merger is also expected to benefit consumers. It is likely to lead to more innovative and affordable financial products and services. It is also likely to increase competition in the Indian financial services market, which will benefit consumers.

SoftBank’s Stake Sale in PB Fintech:

SoftBank’s plan to sell a part of its stake in PB Fintech, the parent company of Policybazaar, in a fresh block deal of around $105 million is a sign of the changing investment landscape in India. SoftBank has been one of the most active investors in the Indian fintech space in recent years. However, the company has been selling down its stakes in some of its Indian investments in recent months.

This is likely due to several factors, including the global economic downturn and the increasing regulatory scrutiny of fintech companies in India. SoftBank is also likely looking to raise cash to fund its other investments.

Altitude’s Funding Round:

Altitude, a fintech startup, has raised $500,000 in funding from angel investors. This is a significant development for the company, as it will allow it to expand its team and develop new products and services.

The funding round was led by a diverse group of over 40 investors, including founders, operators, and institutions such as Swiggy/DineOut, Yes Bank, Good Glamm Group, Robinhood, and Wipro. This shows that there is a lot of interest in Altitude’s platform and its mission to create a more inclusive investment landscape.

Fintech funding records a 68% surge in July-September:

The 68% surge in fintech funding in India in the July-September quarter is a positive sign for the industry. It shows that investors are still bullish on fintech, despite the economic downturn.

There are a few reasons for the surge in fintech funding. First, the Indian government has been supportive of the fintech industry and has taken steps to promote financial inclusion. Second, the Indian fintech market is still relatively untapped, and there is a lot of room for growth. Third, the COVID-19 pandemic has accelerated the adoption of digital payments and other fintech services.

The surge in funding is likely to boost the growth of the Indian fintech industry. It will allow fintech startups to invest in new products and services, expand their reach, and hire more talent. This will benefit consumers and businesses alike.

Indian-origin CEO-run fintech startup Synapse lays off 86 employees:

It is unfortunate to hear that Synapse, an Indian-origin CEO-run fintech startup, has laid off 86 employees. Layoffs are always difficult for employees and their families, and they can hurt the morale and productivity of the remaining workforce.

The company has cited a change in business strategy as the reason for the layoffs. It is unclear exactly what this change in strategy is, but it is possible that the company is pivoting to focus on different products or services, or that it is downsizing to become more profitable.

ONDC To Launch Financial Services:

The launch of financial services on ONDC is a significant development for the Indian financial services market. ONDC is an open network that allows buyers and sellers to connect directly, without having to go through a centralized platform. This means that ONDC can offer financial services from a variety of different providers, which will increase competition and choice for consumers.

ONDC is also expected to benefit small and medium-sized businesses (SMBs) by making it easier for them to access financial services. SMBs often have difficulty getting loans and other financial services from traditional banks and financial institutions. However, ONDC will give SMBs access to a wider range of financial providers, which is likely to make it easier for them to get the funding and other financial services they need to grow their businesses.