The Tech Panda takes a look at what’s buzzing in the startup ecosystem.
India’s startup ecosystem is thriving, with over 1.5 lakh Department for Promotion of Industry and Internal Trade (DPIIT) registered startups and more than 100 unicorns. Fintech, a key pillar of this growth, is redefining access to financial services and enabling small businesses to thrive. With this accelerator, YES BANK reinforces its role as a catalyst for innovation and collaboration in this dynamic sector.
Opportunities in Indian Fintech ecosystem is significant as financial services penetration in India remains low. The gap between major economies and India across segments – insurance, lending, neo-banking, mutual fund assets is anywhere in the range of 3-5X. This gives enough headroom for growth in Indian Fintech space.
Focus on women entrepreneurs is sharpening too. According to a report by the Ministry of Women and Child Development, empowering women entrepreneurs could add over 150 million new jobs in the next decade. According to the UN’s Gender Equality and Youth Development report, achieving gender equality would generate about US$ 700 B of additional GDP by 2025, increasing India’s GDP growth by 1.4%.
Govt. collab for entrepreneurship & innovation
In January, in a significant development to further promote entrepreneurship and innovation, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, joined hands with ITC Limited, one of India’s leading diversified conglomerates.
This collaboration charts a shared vision to accelerate startup growth and technological advancement besides creation of viable market opportunities for startups across the country. Under this partnership, ITC is looking to deploy startup solutions in key areas such as digital platforms for Manufacturing Execution Systems (MES), integrating renewable energy opportunities for manufacturing locations, energy storage systems, etc.
Highlighting this pro- startup initiative, Joint Secretary, DPIIT Sanjiv Singh said that it aligns closely with the Government of India’s flagship programs, including Startup India, Make in India, and AatmaNirbhar Bharat. Moreover, it is also a key step in contributing to Vision 2047 by promoting inclusive and sustainable growth through innovation-led entrepreneurship.
“We look forward to foster scalable solutions and transformative growth to ensure conducive environment for Startups,” added Singh.
Briefly outlining the perspective of this strategic collaboration, Director, Startup India, Dr. Sumeet Kumar Jarangal said that it reflected unwavering commitment to ensure hassle free market access to Startups in terms of unbound opportunities to work out viable solutions as per business requirements of the organisation through ITC’s extensive network and rich experience.
Meanwhile, Anil Rajput, President, ITC Corporate Affairs mentioned, “The MoU will create value for both the startups and ITC. It will focus on digital for increased future-ready and operational excellence in manufacturing, and in the area of renewable energy to expand ITCs sustainable.”
A program to support fintech startups
YES BANK, in collaboration with the Reserve Bank Innovation Hub (RBIH) and S.P. Jain Institute of Management and Research (SPJIMR), launched the Frictionless Finance Accelerator Programme. This initiative, unveiled on National Startup Day, aims to support fintech startups in addressing critical challenges, scaling their innovations, and driving financial inclusion.
Key features include startups can gain access to expertise from RBIH, academic resources from SPJIMR, and YES BANK’s industry knowledge. The programme supports solutions in digital lending, AI-powered risk management, blockchain-based payments, and financial inclusion. Platforms like YES Connect provide startups with tools to navigate regulatory frameworks, optimise business models, and leverage digital infrastructure. The programme builds partnerships between fintechs, industry leaders, and regulators to foster growth and innovation.
Prashant Kumar, Managing Director & CEO, YES BANK, said, “India has emerged as the third-largest startup ecosystem globally, and fintech startups are at the forefront of this transformation. The world is changing fast, and the future is one of interconnectedness, powered by technologies that once seemed impossible. At YES BANK, we are committed to supporting this growth through initiatives like the Frictionless Finance Accelerator, which helps startups address real-world challenges and build scalable solutions.”
US$30 M Fund II for pre-seed investments
Eximius Ventures, a pre-seed focused venture capital firm (VC), launched its second fund, targeting a corpus of $30 million. Fund II plans to take dedicated bets in 25-30 companies across fintech, artificial intelligence (AI)/software-as-a-service (SaaS), frontier tech, and consumer tech, with an initial cheque of $500K each while reserving half of the corpus for follow-on investments, to further support its high-potential portfolio companies.
Fund II has already invested in four companies across consumer tech and AI/Saas. These investments have either been led or co-led by Eximius Ventures alongside other marquee institutional investors. This continues to build on Eximius’ philosophy of focused pre-seed investments as opposed to cohort-driven or spray-pray approach.
Pearl Agarwal, Founder and Managing Partner at Eximius Ventures, said, “At a time when funding is becoming increasingly selective, Eximius is doubling down on pre-seed startups, with an aim to drive momentum in India’s innovation ecosystem. We reject the ‘spray and pray’ mentality, especially at the earliest stages, and instead focus on backing bold, thesis-driven ideas with contrarian view points. Our goal is to bridge the gap for founders seeking their first institutional capital, while enabling them to thrive in a competitive global market. With this new fund, we’re excited to accelerate growth and forge long-term partnerships with visionary founders.”
Eximius Ventures’ Fund I has already made significant strides, having invested in 23 companies including Jar, Finarkein, Vegapay, and Stan.
Early-stage Fintech fund raises INR 200 Crore from HNIs, UHNIs & family offices
IIFL Fintech Fund, an Indian early-stage fund dedicated to fintech sector, closed its second fund IIFL Fintech Fund – Series – II after raising Rs 200 crore from India’s top family offices, UHNI and HNI investors as it aims to invest in the next generation Fintechs of India including in the generative artificial intelligence space.
IIFL Fintech Fund was set up in 2021, with an objective to invest in early-stage Fintechs that IIFL as a group could collaborate with as well. Over the last three years, the Series – I of the fund boasts of 14 investments made across various segments in fintech. The portfolio comprises of – Leegality, FinBox, DataSutram, Finarkein Analytics, Finvu, Trendlyne, Insurance Samadhan, Xtracap Finance, Castler, Vitra.Ai, EasyRewardz, Multipl, Riskcovry, TrustCheckr (sold to True Caller).
The portfolio has delivered a 22.5X revenue growth, in the last three years, 40% of the portfolio is EBIDTA positive, and the fund boats of 0% write-off/Deadpool.
Prakash Bulusu, Joint CEO, IIFL Capital Services limited said, “We have seen very good response from HNIs, UHNis and family offices for our IIFL Fintech Fund Series – II. Considering that India’s fintech is the only segment which is expected to grow 11X vs Indian online retail and Indian consumer tech where the expected growth is 3X and 5.8X respectively, the interest received for the fund was palpable.”
Support for 21,000+ women entrepreneurs with access to finance & skill-development
Indian FinTech Tide tied up with Bengaluru-based Ubuntu Consortium, a Consortium of Women Entrepreneurs Associations. The partnership aims to support women entrepreneurs across India, equipping them with the skills, tools, and resources necessary to take their business to the next level.
The partnership between Tide and the Ubuntu Consortium will focus on building skills, other types of training, and financial literacy, ensuring that women entrepreneurs receive the support they need to expand their businesses. With Ubuntu Consortium’s deep-rooted presence in many states in India and its track record of driving impactful social and economic change, Tide looks forward to supporting women entrepreneurs across Tier- 2, 3, 4 and beyond towns to grow their businesses.
The partnership’s initiatives will cover financial literacy workshop sessions to help women entrepreneurs manage finances more effectively, focusing on essential skills such as budgeting, cash flow management, and basic bookkeeping. Also, this program will support women in harnessing digital tools for marketing, sales, and customer engagement, enabling them to adapt to an increasingly digital economy. It will also oversee workshops on financial readiness, credit applications, and building sustainable credit scores, in response to the challenges women entrepreneurs face in accessing funding.
K. Ratna Prabha IAS, President, Ubuntu Consortium, said, “At Ubuntu Consortium, we are committed to creating an ecosystem where every entrepreneur, particularly women, can thrive. Our collaboration with Tide marks a milestone in our efforts to bridge the gender gap in entrepreneurship. Together, we will provide these women with the resources and knowledge they need to build sustainable businesses, fostering a new generation of women leaders across India.”
