FinTech is restricted from issuing credit cards or offering deposit products. The government could introduce new types of licenses specifically for fintechs, empowering companies such as MobiKwik to offer a wider range of products at more competitive prices for consumers.
MobiKwik ventures into the BNPL segment, a business poised to revolutionize the credit market due to its accessibility and sustainability for small-ticket transactions. In 2017, Bajaj Finance acquired nearly a 12% stake in MobiKwik, seeking a dynamic digital platform to expand its presence. Market observers believe this investment was the catalyst for MobiKwik’s foray into the BNPL business. MobiKwik’s last primary valuation was approximately $736 million when it raised the funding above round. However, the company’s valuation surged to $1 billion during a secondary round, including an ESOP sale in October 2021.
Need of Green Finance in Fintech:
As the financial year progressed, all eyes were on Budget 2024, particularly from the fintech sector, which anticipates important policy changes to promote innovation and sustainability. Bipin Preet Singh highlighted two primary focus areas for this year’s budget: green finance benefits for fintech companies and introducing exclusive licenses. The push for green finance has gained momentum globally, and India is no exception. Green finance refers to financial support for projects that promote environmental sustainability. This could range from renewable energy initiatives to sustainable agriculture and beyond. Singh’s advocacy for green finance benefits in the fintech sector aligns with a broader global trend toward environmentally conscious financial practices.
Another significant expectation from Budget 2024 is the introduction of exclusive licenses for fintech companies. Singh argues that such licenses could significantly boost the fintech sector’s growth by offering a more structured and regulated environment. For these expectations to be realized, Budget 2024 must include clear and actionable policies supporting green finance and offering a framework for exclusive fintech licenses. Collaboration between various stakeholders, including government bodies, financial institutions, and fintech companies, is needed.
Budget 2024 offered a critical opportunity to explore significant advancements in the fintech sector through green finance benefits and exclusive licenses. By aligning financial innovation with environmental sustainability, India can boost its fintech industry and make meaningful progress towards climate goals. The government’s commitment to these initiatives would be key in shaping a sustainable and prosperous future for the fintech sector and the country as a whole.
We recommend that Budget 2024 include policies to support green finance in the fintech sector and introduce exclusive licenses for fintech companies. Green finance incentives would promote sustainable practices and innovation, aligning with global environmental goals. Exclusive licenses would promote a regulated environment and market stability. These measures would drive significant advancements in fintech, supporting economic growth and environmental sustainability, ensuring a prosperous future for the industry and the nation.
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MobiKwik, a pioneering fintech firm established in 2009, has evolved into a comprehensive financial services provider. Initially entering the market as a digital wallet, MobiKwik expanded its offerings to include a payment gateway. It boasts strong online lending and operates as a consumer credit lending agency, aligning itself with the increasingly popular Buy Now Pay Later (BNPL) segment. Stockify empowers investors of all levels to make informed decisions and optimize their portfolios. Whether you are a seasoned trader or a beginner, Stockify offers experience researching, trading, buying, or selling IPO unlisted stocks with real-time market data and customisable features. Stockify ensures that users stay ahead in the dynamic investing world.Buy Unlisted shares at Stockify.