Saturday, 10 June 2017

Flipkart set to enter FinTech Industry

By Shruti Singla

Flipkart is planning to enter FinTech business sector by hiring employees from Silicon Valley. The idea is to target smaller cities and towns starting from middle India and subsequently expanding to rest of the country. The business will aim at providing affordable credit to smaller players who find it difficult to raise credit through offline channels. It will provide various financial products including insurance and pension products besides credit.

The company has an advantage of having access to large financial and customer data. They can therefore build proprietary credit scoring models and expand their reach to the new markets.

The company is planning to hire more tech experts and develop a more tech driven workforce. However it is going to be a risky venture for the company in the country like India where people are not yet comfortable in doing business transactions online and where there is limited internet connectivity in every part of country.

According to a report, around 24 FinTech startups have raised venture funding since the beginning of this year across various domains like online lending, financial advisory, wealth management and payment gateways. After the demonetization phase, many startups like Paytm etc. have successfully captured market and have been performing really well. It will be interesting to see how Flipkart is going to innovate in this field and develop its market.

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