As India observed its Micro, Small, and Medium Enterprises (MSMEs) week, the fintech sector witnessed a flurry of activities aimed at bolstering support for this crucial segment. Over the past few days, numerous fintech companies, regardless of their size, have unveiled new services, products, and initiatives designed to aid small businesses across India. Here’s a roundup of some notable announcements that could significantly shape the trajectory of Indian fintech in the years ahead.

BharatPe’s Joint Venture with PMC Bank

Delhi-based payment company BharatPe, focused on merchants, has entered into a joint venture with Centrum Group to take over the Punjab Maharashtra Cooperative (PMC) Bank, which was embroiled in a scam. The startup plans to inject $250 million-$300 million into the bank over the next two years. BharatPe aims to leverage its insights into the lending behavior of small and medium businesses (SMBs) to offer tailored loan solutions, fostering the growth of MSMEs.

Sachin Bansal’s Foray into General Insurance

Navi General Insurance, led by Sachin Bansal, the co-founder of Flipkart, has unveiled plans to launch the Navi Nifty50 Index Fund, touted as the cheapest index fund in India. Scheduled for launch by July 3, the fund aims to offer investors cost-effective access to the Nifty50 Index.

Digit Insurance’s Fundraising Endeavor

Digit Insurance, a prominent insurtech startup and India’s first unicorn of 2021, is gearing up to raise $200 million in its upcoming funding round. The funding is expected to include participation from leading investors such as Sequoia Capital India, IIFL Alternative Asset Managers, and Faering Capital, subject to regulatory approval.

Leadership Transition at Mswipe

Merchant payments firm Mswipe has appointed Ketan Patel, former CEO of Cashe, as its new chief executive officer (CEO). This move signifies Mswipe’s strategic shift towards becoming a digital small and medium enterprise (SME) bank under the leadership of its founder, Manish Patel, who will assume the role of managing director (MD).

Mastercard’s Investment in Instamojo

Mastercard has made a strategic investment in Instamojo, a payments and online selling platform, with the aim of bolstering support for India’s micro, small, and medium enterprises (MSMEs), as well as gig workers. This investment underscores Mastercard’s commitment to fostering financial inclusion and empowering entrepreneurs across India.

Muthoot Fincorp’s Acquisition of Paymatrix

Gold loan company Muthoot Fincorp has acquired a majority stake (54%) in Hyderabad-based fintech startup Paymatrix. This acquisition aligns with Muthoot Fincorp’s strategy to diversify its offerings and strengthen its presence in the fintech space.

ClearTax’s Rebranding to Clear

ClearTax, initially focused on tax-related services, has rebranded itself as Clear to expand its portfolio to include a broader range of services such as invoicing, wealth management, and credit. This rebranding reflects Clear’s ambition to cater to a wider spectrum of financial needs among Indian consumers.

Tide’s Expansion Plans in India

UK-based fintech platform Tide has announced plans to invest ₹1,000 crore in India to support the expansion of its operations in the country. With a substantial SME user base in the UK, Tide aims to leverage its expertise to assist Indian businesses in scaling their operations and streamlining their financial management processes.

In conclusion, these developments underscore the growing momentum and dynamism within India’s fintech landscape, with a concerted focus on driving financial inclusion, supporting MSMEs, and fostering innovation to address the evolving needs of businesses and consumers alike.