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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