India’s push to digital payments in the last three years has seen tens of millions of people get comfortable with exchanging money online for the first time. But most businesses in the country are still offline and relying on traditional ways to engage with their customers. A Bangalore-based startup that is attempting to bring a similar digitization to them just got a nod from high profile investors.

Setu, a two-year-old startup, said on Wednesday that it has raised $15 million in its Series A financing round from Falcon Edge and Lightspeed Venture Partners U.S. Existing investors Lightspeed India Partners and Bharat Inclusion Seed Fund also participated in the round.

Setu is an API infrastructure provider that allows financial institutions such as banks to connect with companies and small businesses that want to provide financial services to their customers.

The idea is to connect small businesses such as a local cable TV operator or a neighborhood store that is already engaging with thousands of people to serve their customers better by offering formal financial services such as credit. Local kirana stores already have a great understanding of their customers and offer them informal credit. Could they work with financial institutions to formalize their services?

Even as India’s mobile payments market has grown exponentially in the last three years — and saw the arrival of companies such as Amazon, Facebook, Google, and emergence of dozens of local players to help people pay digitally — much of the nation’s population still needs access to formal sachet-ized financial products and services.

“Poor product design, high distribution costs, and legacy technology have been barriers to make this happen,” said Nikhil Kumar, co-founder of Setu.

Kumar, and Sahil Kini, the other co-founder, are especially well-suited to tackle this challenge. Kumar previously worked as a fellow at iSPIRT Foundation that built an ecosystem for UPI, an infrastructure developed by a coalition of banks and backed by the Indian government that has amassed over 100 million users and clocks over a billion transactions a month. Kini worked at Aspada Investments.

The startup today offers open APIs across four categories — bills, savings, credit, and payments. Any developer can access its sandbox to build an application and go through a rigorous developer certification program to go live, the startup said. This makes it easy for any company to acquire plug-and-play financial services and become a fintech player.

“We are big believers in Setu’s vision to build infrastructure that enables the large-scale distribution of, and access to, financial products. Sahil, Nikhil, and the Setu team have an exciting roadmap for the future of financial services in India and we’re proud to support their journey,” said Bejul Somaia, Managing Partner at Lightspeed India, in a statement.

Setu recently launched Collect, an API bundle designed for developers to build their own custom collections product. For instance, lending collection companies are using Setu to build an omni-channel collections stack for banks and NBFCs. “This API platform is built on top of public infrastructure such as UPI and BBPS by partnering with some of India’s leading banks — Kotak, ICICI, & Axis Bank,” said Kumar.

It is now working on building blocks for digital financial services across FASTag, savings, credit, and data, he said.



Source link

88 COMMENTS

  1. Wow, wonderful blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your website is magnificent, let alone the content!|

  2. Thanks , I have just been looking for info approximately this subject for a long time and yours is the best I’ve found out till now. But, what in regards to the conclusion? Are you positive about the supply?|

  3. I don’t know if it’s just me or if everyone else encountering problems with your blog. It appears as if some of the text on your posts are running off the screen. Can somebody else please comment and let me know if this is happening to them too? This might be a issue with my internet browser because I’ve had this happen previously. Cheers|

  4. Thanks for the marvelous posting! I certainly enjoyed reading it, you’re a great author. I will be sure to bookmark your blog and will often come back at some point. I want to encourage continue your great job, have a nice morning!|

  5. I’d like to thank you for the efforts you’ve put in writing this site. I am hoping to view the same high-grade blog posts by you in the future as well. In truth, your creative writing abilities has inspired me to get my own site now ;)|

  6. Hey There. I found your blog using msn. This is a really well written article. I will be sure to bookmark it and return to read more of your useful info. Thanks for the post. I’ll certainly return.|

  7. I don’t even know the way I ended up here, but I believed this put up was good. I don’t recognize who you’re but certainly you’re going to a famous blogger should you are not already. Cheers!|

  8. It’s truly very complicated in this full of activity life to listen news on Television, thus I only use world wide web for that purpose, and obtain the newest information.|

  9. I think what you said made a lot of sense. However, think on this, what if you wrote a catchier post title? I ain’t saying your content isn’t good., but what if you added something that grabbed a person’s attention? I mean BLOG_TITLE is a little boring. You could look at Yahoo’s front page and see how they create news titles to grab people to click. You might add a related video or a related picture or two to grab readers interested about what you’ve written. In my opinion, it would make your website a little bit more interesting.|

  10. Having read this I thought it was very informative. I appreciate you taking the time and energy to put this short article together. I once again find myself personally spending a lot of time both reading and commenting. But so what, it was still worth it!|

  11. Hi, i think that i saw you visited my weblog thus i got here to return the choose?.I am trying to to find issues to enhance my website!I suppose its adequate to use a few of your ideas!!|

  12. I’m not sure where you are getting your info, but great topic. I needs to spend some time learning more or understanding more. Thanks for magnificent information I was looking for this information for my mission.|

  13. Hey, I think your blog might be having browser compatibility issues. When I look at your blog in Firefox, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, great blog!|

  14. Hi there! Would you mind if I share your blog with my
    myspace group? There’s a lot of folks that I think would really appreciate your content.
    Please let me know. Cheers

  15. certainly like your web-site however you have to check the spelling on quite a few of your posts. A number of them are rife with spelling issues and I in finding it very troublesome to tell the reality on the other hand I will surely come again again.|

  16. First of all I would like to say awesome blog! I had a quick question which I’d like to ask if you don’t mind. I was curious to find out how you center yourself and clear your mind prior to writing. I’ve had difficulty clearing my mind in getting my thoughts out there. I do take pleasure in writing however it just seems like the first 10 to 15 minutes tend to be lost simply just trying to figure out how to begin. Any recommendations or hints? Thank you!|

  17. Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You clearly know what youre talking about, why throw away your intelligence on just posting videos to your weblog when you could be giving us something enlightening to read?|

  18. Hello, I think your site may be having web browser compatibility issues. Whenever I take a look at your blog in Safari, it looks fine but when opening in Internet Explorer, it’s got some overlapping issues. I just wanted to provide you with a quick heads up! Other than that, wonderful website!|

  19. Great blog right here! Also your website rather a lot up fast!
    What web host are you the usage of? Can I am getting your affiliate hyperlink
    on your host? I wish my website loaded up as quickly as yours lol

  20. First of all I want to say great blog! I had a quick question in which I’d like to ask if you don’t mind. I was curious to find out how you center yourself and clear your thoughts prior to writing. I’ve had a tough time clearing my mind in getting my ideas out. I truly do enjoy writing but it just seems like the first 10 to 15 minutes are wasted simply just trying to figure out how to begin. Any suggestions or tips? Thank you!|

  21. This is very interesting, You’re a very skilled blogger. I have joined your rss feed and look forward to seeking more of your great post. Also, I have shared your web site in my social networks!|

  22. Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You clearly know what youre talking about, why waste your intelligence on just posting videos to your site when you could be giving us something enlightening to read?|

  23. Thanks , I’ve recently been looking for info about this subject for ages and yours is the best I have came upon till now. But, what about the bottom line? Are you positive about the source?|

  24. Greetings! This is my first comment here so I just wanted to give a quick shout out and tell you I truly enjoy reading through your blog posts. Can you suggest any other blogs/websites/forums that cover the same subjects? Thank you so much!|

  25. What’s Going down i am new to this, I stumbled upon this I’ve found It positively helpful and it has aided me out loads. I’m hoping to give a contribution & assist different customers like its aided me. Great job.|

  26. Its like you learn my thoughts! You seem to understand so much about this, like you wrote the guide in it or something. I feel that you just can do with a few to drive the message house a bit, however other than that, that is great blog. A great read. I will certainly be back.

  27. Hi, Neat post. There’s an issue along with your website in internet explorer, might test this… IE nonetheless is the marketplace chief and a good section of other folks will leave out your excellent writing because of this problem.

  28. Definitely believe that which you stated. Your favorite reason seemed to be on the internet the easiest thing to be aware of. I say to you, I definitely get annoyed while people consider worries that they plainly do not know about. You managed to hit the nail upon the top and defined out the whole thing without having side-effects , people can take a signal. Will likely be back to get more. Thanks|

  29. Hello, i read your blog from time to time and i own a similar one and i was just curious if you get a lot of spam responses? If so how do you prevent it, any plugin or anything you can recommend? I get so much lately it’s driving me insane so any assistance is very much appreciated.|

LEAVE A REPLY

Please enter your comment!
Please enter your name here