Fabric of

Fintech 3.0
Dissecting value chains and
exploring emerging trends
 Foreword
In our year-long reflection since the “Fabric of Fintech 2.0", the world has witnessed a rapid deceleration of the
global economy, with a noticeable slowdown in startup investments and fintech ventures both globally and within
India. However, amidst this backdrop of uncertainty and economic challenges, there shines a resilient light –
fintech startups that not only endure but thrive with a steadfast commitment to profitability.

Amidst the gloom, August 2023 is a historic milestone in the annals of digital finance, India witnessed the first-ever
month in which over 10 billion transactions were conducted digitally on a single platform, namely UPI. This
remarkable feat underscores the incredible utility of the UPI platform and, in turn, sets the stage for a powerful
ripple effect in lending, insurance, and wealth management for small businesses.

While the harsh winds of a funding winter continue to blow, startups built on a foundation of prudent financial
management and a relentless focus on profitability are not only weathering the storm but also attracting capital
and expanding their operations. Moreover, larger publicly listed startups like Paytm and Policy Bazaar are inching
closer to profitability, with year-on-year growth in their share prices, albeit below their initial listing prices.

Mr. Aparajit Bhandarkar

Government initiatives aimed at fostering open banking frameworks, public technology platforms, and push in
Managing Partner, Varanium NexGen Fund insurance, such as 'Bima Sugam and national health claim exchange platform', hold the promise of becoming the
next catalyst for growth and democratization of financial access. Indian regulatory bodies are recognizing the
importance of innovation and working diligently to create the necessary frameworks to support such innovations.

When data is the new currency and cyber-attacks have become the modern-day equivalent of piracy; privacy, and security are no longer mere buzzwords; they are the
foundational pillars of the fintech edifice. As we transition our financial ecosystems onto digital platforms, safeguarding the confidentiality of personal information and
preserving the integrity of financial transactions have assumed paramount importance. Today, privacy and security are not merely technological prerequisites; they have
evolved into societal imperatives, and it is at this crucial juncture that data privacy laws come into play.

In our third Fintech report, we aim to be your guide in this intricate landscape. We delve into business models, technology stacks, government-led initiatives, and the evolving
regulatory environment shaping fintech in India and globally. Together, we explore the nodes and networks, platforms, and protocols that form fintech's complex tapestry.

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Fabric of Fintech 2.0
Table of Contents
Overview of Global Fintech Landscape Insurance

Global and Indian Landscape

Digital Infrastructure, Enablers and Regulations Insurance Stack
Penetration: India vs Global
Data Protection
Challenges in Penetration in India
Account Aggregators
Initiatives to drive penetration in India
Identity Infrastructure
Emerging Trends
Open Banking around the world

Payments Wealth Tech

Global and Indian Landscape Global and Indian Landscape
Payments Stack Wealth Stack
Payments: Revenue Model Wealth Management Process
Comparison of Real-Time Payment System around the world Emerging Trends
Different Pay Later Models New Age Investing Platform
Types of Payment Frauds
Emerging Trends Future Trends in Fintech
CBDC
Conversational and Embedded Finance
Alternate Lending Generative AI use cases in fintech
Privacy Related Solutions
Global and Indian Landscape Pay with Social Currency
Banking Stack Enterprise Blockchain
Loan Operating Systems: Evolution over decades
Emerging Trends About Varanium
Lending Growth and NPA Trends
 UPI
New Age Brokers
Wallets Global Landscape
Robo Advisory
Payment Gateways
New Age Investment Platform
POS
Investment Fractional Investments
Cards Payments
Tech
Money Management Apps
Rewards Global : $ 207 Bn Global : $ 108 Bn
India : $ 15 Bn India : $ 3.18 Bn Private Market Inventing
Payments Banks
Analytics Platform
Payments Infrastructure
Micro Savings
Agent Based Payments

Fraud Analytics Platform

Internet Manufacturers
Others
Insurance Brokers
Business Loan
Insurance Micro/Contextual Insurance
Fintech Verticals Tech
Retail Loan
Insurance Aggregators
Global : $ 69.5 Bn
Business + Retail Loan India : $ 3.72 Bn
Global : $ 674.5 Bn Health Ecosystem
Buy Now Pay Later India : $ 34.4 Bn
Internet of Things
Invoice Discounting Platform
Insurance Analytics
Gold Loan
Process Facilitation
Revenue Based Financing
Fintech Platforms
P2P Lending Alternate
Lending Business
Debt Analytics and Scoring
Global : $ 188 Bn Neo Banks
Loan Comparison India : $ 9.1 Bn

Global : $ 102 Bn
Millennials
Structured/Syndication + Financing India : $ 3.37 Bn

EMI Conversion and Down Payment

Assitance
Note: Global includes India
Source: Tracxn
Others
 Fintech funding in India
Indian Fintech Funding by Number of Deals Indian Fintech Funding by Value ($ bn)

Neobanking InvestTech InsureTech Lending Neobanking InvestTech InsureTech Lending

Payments Payments
750 10 9.64

638

7.5
22%
488 51%
500
5.79
416 413 17%
359 30% 5 21%
20% 22%
4.02
20% 35%
20%
10%
250 38% 33%
47%
38% 8% 50%
23%
2.5 2.24 2.06
12% 9% 1.81
9%
9% 27% 97 35% 33%
23% 10%
9% 44%
19% 18% 19% 19% 31% 32%
16% 12% 10% 12%
15% 38% 10% 35%
15% 6% 21% 8% 11% 1%
14% 14% 14% 13% 16% 12%
4% 9% 5% 7%
0 16% 0
2018 2019 2020 2021 2022 2023 YTD 2018 2019 2020 2021 2022 2023 YTD

Note: YTD is till July 2023

Source: Tracxn
Digital
Infrastructure,
Enablers and
Regulations
Data protection Regulations
Data protection is the process of safeguarding important information from corruption, compromise or loss.
India, one of the world’s largest data markets after China, has finally come with data privacy law: Digital Personal Data Protection Act (’DPDPA”) 2023. It will now
provide tighter and better control to users over the use of their personal information. The key differences in the EU’s GDPR and India’s DPDPA are as follows:

Parameters DPDPA GDPR

Classification of Personal Applies to all categories of personal data in digital form and does not classify Classifies personal data in special categories: genetic data,
Data it into special categories of personal data. biometric data, personal data revealing ethnic origin, etc.

Covers only processing of personal data by partly or wholly automated Doesn’t draw any distinction between means of processing
Processing of Personal Data
means. Non-automated methods have been excluded. of personal data.

Certain data fiduciaries (akin to data controllers under GDPR) are classified as
Classification of Data significant data fiduciaries (SDF). This is on the basis of volume + sensitivity of
There is no equivalent of a significant data fiduciary.
Fiduciaries personal data processed, risk posed to the rights of the data principal,
national security, public order etc.

Applies to data controllers established outside EU where

Limited to cases of a data fiduciary outside India processes personal data in
Extra-territorial Applicability processing activities related to monitoring of data subjects’
connection with an activity to data principals in India.
behaviour within EU.

Cross-Border Data Transfer Blacklisting Approach Whitelisting Approach

Children’s Data Below 18 years of age. Below 16 years of age, reducible to 13 by member countries.

Yes (Act as single point of contact point to enable data principals give, There is no equivalent concept of consent manager in
Consent Manager
manage, review, withdraw their consent) GDPR.

Cookie Law No Yes

Variable (upto 4% of worldwide revenue of preceding

Penalties Capped to INR 250 crores.
financial year).

Source: Varanium Research

 Consent based data economy
The Data Protection Act 2018 -
Amended in Jan 2021 by regulations
under the European Union Regulation on Online Protection of Children's Personal
(Withdrawal) Act 2018, to reflect the Information, Oct 19
UK's status outside the EU. Personal Information Protection Law, Nov 21
Personal Information Security Specification, May 2018
(amended in 2020)

The Act on Protection of Personal

Information, 2003
GDPR was approved by the European
Privacy is a state subject
Parliament on April 14, 2016 and went
into effect on May 25, 2018. GDPR
California - California Privacy Rights Act (CPRA) become
replaces the EU Data Protection
effective on Jan 2023. CPRA amended the California Personal Data Protection Act, Amendments became
Directive of 1995. Digital Personal Data
Consumer Privacy Act (CCPA) effective on Feb, 2022 and Oct, 2022
Protection Act, Aug 2023
Virginia Consumer Data Privacy Act (VCDPA), Jan 2023
The Colorado Privacy Act (CPA), Jul 2023
The Connecticut Data Privacy Act (CDPA), Jul 2023
The Utah Consumer Privacy Act (UCPA), Dec 2023

Privacy Legislation Amendment (Enforcement and

Other Measures) Act 2022 to amend the Australian
Privacy Act 1988

Source: Varanium Research

 Account Aggregators
RBI-regulated entity (with an NBFC-AA license) that helps individuals/ corporates securely and digitally access and share financial information (Bank accounts,
GST, Insurance, Investment, etc.) from one financial institution to other regulated financial institutions in the AA network.

Parameters Aug-21 Aug-22 Aug-23

Customer
Consents processed 0.01 Mn 1.36 Mn 18.06 Mn

Handles created 0.01 Mn 1.32 Mn 18.63 Mn Financial Information Financial Information User
Provider MFs, NBFC, Banks, Insurers,
FIPs Onboarded 6 15 92
Banks, PFRDA, Mutual Funds, Fintech/Lenders, Regulated
FIUs Onboarded 3 26 259
GSTIN Network, NBFCs, entities, Personal Finance
Gives consent to share
AA operating entity 4 6 13 Insurance Companies managers

Banking, GST, NSDL,

Live Data Items Banking Banking
CDSL, Insurance Requests
Requests
data through
data
open APIs

Encrypted data flow in real time

What it will bring Potential Impact

Temper-proof data ingestion, ease of Reduction in cost of processing loans.
integration, and aggregation. Reduced time and increased accuracy by doing straight-through processing of data.
Provides infrastructure for greater financial Real-time early warning systems through account monitoring access.
inclusion. Creation of more customized personal and automated finance management tools, which can
Better Data Privacy & Control for user’s include expense analysis, easy accounting, and investment recommendations.
financial data.

Source: Varanium Research

 Comparision
of AA and equivalent Global Models

India China Australia Singapore Korea

Pursuant of Customer
Centralized sharing of Account Aggregator Singapore Financial
Data Right and Open My Data
customer data (AA) Data Exchange (SEDX)
Banking Regs

Customer consent for Routed through

data sharing Licensed agency

Mandatory sharing of
customer data by Joining ecosystem is Joining is Joining voluntary, but Joining voluntary, but
incumbent lenders to voluntary, but mandatory voluntary mandatory sharing of mandatory sharing of
third party sharing of data data data

Fintech and other

financial institutions Data can be shared with On accreditation NA
partnership to share regulated entities after Direct sharing from regulators Subject to Personal
customer data customer consent banned Data Protection Act

Source: Credit Suisse

 Identity Infrastructure
Aadhar Resident ID Card e-Estonia SingPass UAE Pass

No. of users 1.4 bn 1.4 bn 1.3 mn 4.5 mn 2.0 mn

Population coverage 96% 98% 99% 83% 20%

Government data
ownership
(User-controlled)

Use Cases ID proof & verification, ID Proof & verification, ID Proof, Digital Login ID proof & verification, ID Proof, Prefill Forms,
Digital Sign (Aadhar- residential permit, Password (via PIN), Prefill Forms, social Digital Login, Digital
based e-sign), Filing driving license, opening Digital signature, i- welfare programs, digital Signature/E-Seal,
returns, Digital Life bank accounts, hotel Voting, Medical Proofs, document vault, tax filing, Document Sharing,
Certificate, DBT, AePS, check-in, social welfare Filing tax returns, e- access healthcare, Access Govt & some Non-
BHIM Aadhar Pay, programs Health Record & e- product purchase, Govt Services, Digital
Digital Document Vault Prescription building entry, donations, Document Vault Access
Access etc

Authentication Biometrics: Fingerprints, Hierarchical: 2FA 2FA: Singpass app, SMS Basic: OTP (treated as
Iris Weak: Wechat OTP unverified),
Identity: address, DOB, Strong: Facial Biometric: Fingerprint, Iris Basic + SmartPass: Dubai
phone number recognition/ biometric Re-enrolment: at 30 & 55 /Emirates ID
Basic + biometrics: at
kiosk
Source: MIT Report, Country-specific websites
 Open banking around the world
No. of open banking users by region (2020-24)

1.Payment Services Directive 2 (PSD2)

Requires banks to open up their APIs to third-party
providers, allowing consumers to access their
financial data and make payments through a wider
range of services.
2. Account Information Service (AIS)
Allows consumers to access their bank account
information through third-party providers, such as
budgeting apps or personal finance management
tools.

Open Banking UK
Forecasted Global Open Banking Size Growth Requires banks to open up their Account Aggregator
$123.7 APIs to third-party providers, Consent based Financial Data
125
allowing consumers to access their sharing through licensed NBFC-
financial data and make payments Account Aggregator entity
100
through a wider range of services.
3 .4%
75 G R: 2
CA
$48.13
50

25 $15.13 $19.14

0 Open Banking Australia

2021 2022 2026 2031
Requires banks to make available certain customer-
permissioned data and services through APIs, allowing
Note: The open banking market refers to sales of open banking consumers to access their financial data and make
services by entities (organizations, sole traders, partnerships) payments through a wider range of services.

Source: Juniper Research, The Business Research Co., Allied Market Research
Payments
 Global Landscape
Payforward - US
Wechat - China
$ 59.9 Mn Rewards
Real Time Payments
Ecosystem
Intuitive - Canada Kakao - South Korea

$ 32.2 Mn $ 332 Mn

Stripe - US
$ 9.21 Bn
Signifyd - US
$ 394 Mn Payments Aggregator Mollie - Netherlands
Fraud Analytics
$ 940 Mn
Feedzai - US

$ 282 Mn Paynearme - US
$ 137 Mn

Fazz - Indonesia Sumup - UK

$ 80.3 Mn Agent Based Payments
Payments POS $ 1.6 Bn

Paga - Nigeria Block - US (Listed)

$ 35 Mn $ 51.9.75 Mn

Mission Lane - US
$ 582 Mn

Consumers
Petal - US
Zepz - UK
$ 300 Mn

Wallets $ 686 Mn
Cards
Ramp - US MoMo - Vietnam
$ 970 Mn
$ 433 Mn

Pleo - Denmark
Corporate
$ 434 Mn

Jeeves - US
$ 380 Mn

Rapyd - Israel
$ 778 Mn
Value Added Services

Cloudwalk - Brazil
$ 365 Mn

Source: Tracxn
 Slice
$ 326 Mn

Indian Landscape Consumers

One Card
$ 233 Mn

Phone Pe (Acquired by Flipkart) Karbon UniCards

$ 1.10 Bn $32 Mn $ 94 Mn
UPI Enkash
Cards Corporate
Google Pay $ 23.5 Mn

Kodo
$ 8.9 Mn
CITYCASH (acquired by
Fino Paytech)
Paytm (Listed)
Transit $4.7 Mn
$4.64 Bn
Wallets
KATCHAPP
Mobikwik
$269.41 Mn Fino Paytech Ltd. (Listed)
$ 177 Mn

RazorPay Payments Bank Paytm Payments Bank

$ 817 Mn $ 9.3 Mn

BillDesk (Acquired by PayU) Payment Aggregator Airtel Payments Bank

$ 245 Mn

Cashfree
$ 42 Mn

Innoviti
Pinelabs
$ 128 Mn
$1.61 Bn
Mswipe
$106 Mn
Hard POS
Payments Value Added Services Juspay
$ 87.8 Mn
Ezetap (Acquired by Razorpay)
$ 66 Mn Easebuzz
POS $ 15 Bn $ 4 Mn
ZUPPOS
$2.3 Mn

UPoS (Acquired by Infibeam)

Soft POS
$964 K Suvidhaa
Astechnolutions $ 37 Mn
$ 157.8 K Agent Based Spice Money
Payments $ 15.4 Mn
Cred
$1.04 Bn Rapipay
Qwikcilver (Acquired by Pinelabs) $ 14.2 Mn
Rewards
$ 22.9 Mn

Twidpay Bharatpe
$ 17 Mn $ 617.3 Mn

Bookmyforex (Acquired
by MakemyTrip)
Difenz
Others $ 5.6 Mn
$ 608 K
Fraud Analytics
Vcard
DronaPay
$500K OSTA

Source: Tracxn
 Payments Stack
Payment Aggregators

Merchant Customer

CRM Authentication Audits Controls API Gateways

VAS (Capital, Neobanking & Other) Payment Services Common Platform Component

Analytics
Cloud Infrastructure

Service App Risk Assurance KYC

Refund Settlement Disputes Offers
Layer Layer
Onboarding
SaaS
Layer Alerts
Optimizer Gateway Integration Layer
Notifications

Reconciliation Layer APIs, S2S, Files Nodal/Escrow Layer Reporting

External Gateways, Banks, Networks, Partners, Payment Switch

Source: Industry experts, Varanium Research

 Payments Stack
Payment Switch
Netbanking UPI Wallets

Back Office Collect Hardware Visa,

Security Mastercard,
Module Rupay –
Clearing &
UPI/Bharat - QR
Settlement
Merchant Plug-in (MPI)
Payment Gateway
E-Commerce
VISA
MPI with PASS 3D 2.2
Connectivity
VISA
Network Access Payment Mastercard
POS/mPOS/Soft Mastercard
Control Switch Issuer
POS/ mATM Connectivity
(PSTN/SIM/WIFI/LAN) Rupay

UPI
RuPay & UPI
Connectivity
POS
NAC Portal
Management
Solutions

Banks & Govt

Source: Industry experts, Varanium Research

 Payment: Revenue Model
Agent-based payment model
POS (offline)
Interchange / Cost Trade Income /
Service Interchange
Subscription: Rs. 400 – 600 per month detailing Passthrough
Net MDR: 4 – 15 bps per transaction

AEPS: Cash Deposit & Withdrawal 0.5% (max Rs 15) 60-70%

Payment Aggregator (online)
MDR mATM (Card plus Pin) - Cash withdrawal 0.5% (max Rs. 15) 70-75%
Collections: 0.4 - 2% (domestic),
3% (international) per transaction; pass
through ~ 75% Domestic Money Remittance Customer Cost 1% 70-75%
Payouts: Rs. 2 - 10 per transaction; pass
through ~ 30%
20-30 bps (basis
Cash Collection (Agent Model) 70-75%
entreprise to entreprise)
Payment Switch
Gross Revenue: One-time integration fee
(15L-1.5crs) and either a flat fee of INR 1-2 BBPS:
30 bps 70-75%
or 10-15 bps per transaction (depending on Loan Repayment (Customer model)
Rs 2.25 per bill 50-60%
volumes); pass through ~ 8-10 bps Electrcity /GAS/ Water bills
Rs 5 per bill 50-60%
PostPaid/Broadband/landline bills
25 bps 60-70%
Fastag Recharge

1%-3.5% of the
Mobile Prepaid Recharge 70-75%
transaction Value

Source: Industry experts, Varanium Research Note: Interchange includes Bank, NPCI share as well
 Real-Time Payment systems
A comparision

UPI Paynow FPS UK FPS China Instapay Philippines

Volumes (Bn) 74.00 0.29 3.94 16.55 0.55

Value (local CCY in Tn) 125.95 0.38 3.20 278.65 3.54

Value (in Tn $) 1.60 0.28 3.95 41.40 0.01

Cross Border

P2P

P2M

Payment Speed 30 sec max 15 sec max 30 sec max 20 sec max NA

Transaction Limit IMPS: 2,00,000 SGD 2,00,000 GBP 2,50,000 CNY 1 million, PHP 50,000
UPI: 1,00,000 participants can
limit it further

User charges IMPS: ~ INR 5 to 15 Decision of banks, Decision of banks Decision of banks Decision of banks/
UPI: Nil (govt free for retail use participating
reimburses banks) institution

Source: World Bank (Fast Payment System - Global Tracker), IRS USA Notes: Data for the year 2022. $ value based on average exchange rate for 2022
 Pay Later Models
BNPL HNPL SNPL
Buy Now Pay Later Hold Now Pay Later Save Now Pay Later*

Selection Amount Blocked in Account but not Goal creation for future purchase
debited

Checkout Multiple Purchases upto amount Selection of partner brands

blocked

BNPL Approval Amount repaid in 7 to 15 days Recurring amount saved for a period
net of partnered brands dicounts

Purchase
If not repaid, account unblocked On Maturity, amount is sent directly
after debiting amount spent to the partner
Repayment (within ~7-10 days)

Note : *User can withdraw prior to maturity subject to

non-availability of partner discount

If not repaid, converted to Loan

Source: Varanium Research

 Types of Payment Fraud
By nature of fraud

Investment scams Romance scams Impersonation scams

Fraudsters send emails/texts that
appear to be from a legitimate
company offering tips on
investments that provide good
returns (forex/funds). They help
victim open account on a fake
site and make gains initially
before getting victim to invest a
larger amount of money.
Fraudsters create fake profiles
on dating websites or social
media platforms. They then build
relationships with victims. Once
they gain victim's trust, they ask
for money for various reasons (to
pay medical bills or travel to see
the victim)
Fraudsters pretend to be from
bank or the police. They say that
the victim's account has been
compromised and that they need
to transfer money to a new
account immediately. They are
directed to a fake website where
the fraudsters steal victim’s
payment information.

Tech support scams Fake invoice/ Bill scams

Fraudsters call or text victims and Fraudsters send emails or texts

pretend to be from a legitimate
tech support company. They say
that the victim's computer has a
problem and that they need to
pay for remote assistance to fix
it. When the victim enters their
payment information on the fake
website, the fraudsters steal it.
that appear to be from a utility
company (power, water,
electricity, etc). The emails/ texts
say that there is a problem with
the victim's account and that
they need to pay a certain
amount of money. The victim is
then directed to a website.

Source: Industry experts

 Types of Payment Fraud
By payment mode Global
Confidence tricks 26.9%
Identity theft 11.6%
Average
Card details theft 26.3%

Card Specific Frauds Mobile Banking, Internet India 44.6%

Card not present: Banking, and UPI frauds
Usage of stolen or fraudulent card
SIM Swap: Nigeria 40.4%
data to execute transactions on e-
Fraudsters manage to obtain a
commerce sites by fraudsters is a
replacement SIM and transfer the
common problem statement faced Saudi Arabia 33.2%
UPI app to a new device before
by card issuers.
executing transactions linked to
the customers bank account. USA 30.7%
Card present:
In card present cases, the
Remote takeover (RTO):
fraudsters could have temporary
Fraudsters use screen or device Australia 28.1%
use of the card, or the fraud may
sharing apps like Anydesk or
be a dispute / first party instance
Teamviewer to get control of the
where a customer does not Thailand 25.7%
device and use this to transfer
remember or want to pay for the
funds.
transaction.
Singapore 25.3%
Account takeover (ATO):
Contactless:
Fraudsters obtain user credentials
The use of NFC has created a new
based on data leaks, open network Canada 24.6%
set of scams where fraudsters
traffic (like airport wifi) and use this
manage to bill customers without
information to obtain access to
them being aware or by debiting a New Zealand 24.4%
client accounts.
transaction twice.
% only represents respondents who were impacted
by fraud in last 4 years
New fraud such as Confidence Tricks are on the rise, while Identity Theft and Card Details Theft are declining.

Source: Industry experts, ACI Worldwide Report

 Reported payment frauds in India
Payment Frauds (by number) Payment Frauds (by value - in crores)

Forex Cards/Internet Cash Cheque/DD Forex Cards/Internet Cash Cheque/DD

Clearing Accounts Clearing Accounts
10,000 500 0.6%
5.3%
0.2% 0.2%
1.4%
400 1.1%
7,500 17.8%
33.3%
22.6% 38.2%
300
10.4%
5,000 0.4%
4.5% 22.5%
14.5% 80.4% 200 31.6%
0.5%
5.3% 58.2%
10.8%
2,500 80.5%
83.3%
100 37.4%
34.3%

0.1% 0.2% 0.2% 1.7% 2.5%

0 0
2021 2022 2023 2021 2022 2023

Payment Payment
Frauds 3,055 4,469 8,278 376 414 474
Frauds

Total Frauds 7,338 9,097 13,530 Total Frauds 132,389 59,819 30,252

Payment
Frauds 42% 49% 61% Payment 0.3% 0.7% 1.6%
Frauds

The reported numbers are far lower than actual number of frauds in the industry
Note: Data are in respect of frauds of Rs. 1 lakh and above reported during the period.

Source: RBI
 Transaction Fraud Monitoring
Methodology
IP Address City
Historic
App State
Profile

Velocity
Parsing Rules & Models

Payer IP Address Blacklist

Payee App Velocity

Device OS Superman

Location City Score

Value State ML Model

OS
Real-time
City
Profile

State

Source: Industry experts

Emerging Trends Rise of IoT and M2M
Internet of Things (IoT) refers to a network of physical devices, vehicles,
appliances and other physical objects that are embedded with sensors, Use Case Description
software and network connectivity that allows them to collect and share
data. These devices — also known as “smart objects” — can range from
simple “smart home” devices like smart thermostats to wearables like Cars can automatically pay tolls without the need for human
smartwatches and RFID-enabled clothing, to complex industrial Toll payment intervention. Suitable Technologies: RFID tags, QR codes, or
machinery and transportation systems. Technologists are even envisioning blockchain.
entire “smart cities” predicated on IoT technologies. The technologies to
support Smart Payment are already well established. However, payments Users can purchase content or services directly from their smart
are still predominantly triggered by humans. With Smart Payments, TV without having to enter their credit card information. This can
machines will replace manual payments, which means devices will initiate Smart TV payments be done using a variety of payment methods, such as in device
transactions depending on their capacity to function autonomously. Here pre-paid instrument, subscription services, or one-time
are four levels of transactions in Smart Payments. payments.

Users can automatically order groceries or other products from

How Autonomous are IOT Payments
Level 0 - Informational
When the device has permission to
access a user’s bank account
Example- A smart speaker
accessess
a user’s banking details though
voice service
Level 3 - Fully Autonomous
When the device uses both pre-
defined deterministic condition and
adaptive behaviours of the device
Example- A system that
automatically orders and pays for
repairs in a smart city
Level 1 - Permissioned
When the device must request explicit consent
of the user before triggering a payment
Example- At a fuel station, a push notification
appears on a smart phone for requesting
refueling payment
Level 2 - Conditional
When the device triggers a payment for
toner replacement when the level is low
Example- A smart printer automatically
triggers a payment for toner replacement
when the level is low
Smart fridge payments
their smart fridge when they are running low.
Connected car Connected cars can automatically pay for parking, fuel, and
payments other services.
Machine-to-machine payments can be used to automate
Industrial automation payments in industrial settings. This can be used to pay for raw
materials, finished goods, or services.
Smart meters can automatically send data about energy usage
to utility companies. This data can be used to bill customers for
Smart metering
their energy usage or to offer them discounts for using less
energy.

Source: Lumenci, Varanium Research

 Emerging Trends
New form factors of payments

Dynamic CVV Smart ring 2-in-1 Cards

Cards payment (Credit and Debit)

Smart Watch Palm

payments scanners EMI Cards

Source: Company specific websites, public domain

 Emerging Trends
Cross-border payments
Asset Linked Conversions
This innovation involves the use of digital assets (like digital
precious metals, fractional shares etc) as a medium of
exchange in cross-border transactions.
The sender converts their currency into a digital asset, which is
then sent across borders and converted back into the
recipient's local currency.
This method can potentially reduce transaction costs and
increase speed however, in many countries, there are
additional regulations that one needs to follow, and capital
gain at every transaction makes this tax inefficient.
Visa B2B Payments
A platform developed by Visa for direct B2B payments.
It uses a distributed ledger technology to simplify and speed
up the process.
This allows businesses to make secure, direct transactions with
each other globally.
Source: Industry experts
Card-to-Card Transfers
This technology allows for direct transfers between debit or
credit cards issued by different banks or in different countries.
It simplifies the process of sending money abroad by
eliminating the need for bank account details and can be
faster than traditional bank transfers.
It should be noted that in many countries, Credit to Credit and
Credit to Debit Card transfers are prohibited.
SWIFT GPI (Global Payments Innovation)
This service by SWIFT enhances the speed, transparency, and
traceability of cross-border payments.
It allows banks to provide end-to-end payment tracking to
their customers and reduces the time taken for international
transfers.
 CBDC
A New Chapter in Fiat Currency

Benefits Challenges
Supporting a resilient payments landscape, no Privacy risks due to potential tracking.
counterfeiting is possible. Too much control: the government can
Avoiding the risks of new forms of private money direct where and how much to spend.
creation. Operational risks and security
Supporting competition, efficiency, and innovation vulnerabilities.
in payments. More power in the hands of dictator
Meeting future payment needs in a digital and authoritarian governments by
economy by creating programmable money allowing them to put punitive sanctions
A Central Bank Digital Currency (CBDC) is
Improving the availability and usability of central again opposition.
the digital form of a country's fiat currency.
bank money
Like fiat currency, it is also a claim on the
Making monetary and fiscal policy more effective.
central bank, but instead of printing
Addressing the consequences of a decline in cash.
money, the central bank issues electronic
Building block for better cross-border instant
coins or accounts backed by the full faith
payments.
and credit of the government and
economic activity.

Where 130 Countries and Currency Unions Stand on CBDC Progress in June 2023
Launched Pilot Development Research Inactive Cancelled Others

Source: CBDC Tracker

CBDC Architectures
An overview of potential retail CBDC architectures
CBDC Bank X

A
CBDC ICBDC
ICBDC is claim on an Intermediary 300 A:200
Indirect CBDC B:100
B
(synthetic two-tier/ Intermediaries onboard (KYC) and handle retail CBDC
multi-cell) payments Assets
X:300
600
The central bank handles wholesale payments Y:300
CBDC ICBDC
300 C:300
C

Central Bank CBDC Bank Y

Direct CBDC CBDC is a claim on the central bank

CBDC B
(digital banknotes/ central Intermediaries or central bank onboard (KYC) Assets
A: 200
bank accounts/ single-cell/ Central bank handles retail payments 600
B: 100
central bank currency) C: 300
C
Central Bank

CBDC - PSP X
A

Hybrid CBDC CBDC is a claim on the central bank B

CBDC
Intermediaries onboard (KYC) and handle retail Assets
A: 200 CBDC - PSP Y
600
payments B: 100
Central bank periodically records retail C: 300

balances C
Central Bank

Legal claim communication during payment Real-time Deferred Person (if account-based) or pseudonym (if token-based) Merchant
 Wholesale CBDC cross-border
payment
The procedure of cross-border payments on bridge from Hong Kong to UAE

Debits Pay and/or Redeems e-AED

funds settlement for fiat currency
account with HKMA

HKMA CBUAE

Forex Supplier Payee

Issues e-HKD to
Bank A on bridge

Converts e-HKD Credits the payee

to e-AED with funds
Bank A in HK: The Initiator Bank B in UAE: The Receiver

Transfers e-AED to Bank B

Source: TABInsights
 CBDC across the world
India China Sweden The Bahamas Eastern Caribbean Marshall Islands
(e-Rupee) (DP/EP) (e-krona) (Sand Dollar) Currency Union (DXCD) (SOV)

Operational Monetary Declining use of Payment effciency, Resilient Financial

Main Motivation efficiency, financial sovereignty, cash, financial financial inclusion payment system, inclusion,
inclusion Internationalisation stability financial inclusion seigniorage

1 2
Interest Bearing

Limits on Holding 7
& Transactions

Offline Usability NA

4
International Access

5 6
Technology DLT NA DLT DLT DLT DLT

1. Not finally decided yet, but probably not interest-bearing as the initial focus of the pilot is on non-interest-bearing e-krona.
2. The SOV will be indirectly interest-bearing as monetary supply increase will be mostly allocated to SOV holders (75%)
3. Although cross-border payments are announced, capital controls might limit them.
4. The Eastern Caribbean Dollar is subject to capital controls that will likely also hold for the DXCD.
5. The e-krona prototype uses DLT. The technological choice for the final CBDC-if indeed continuing with CBDC - has not been finally decided yet.
6. It has not been officially confirmed that the Sand Dollar utilizes DLT. However, the technological focus of the technology provider argues for using DLT. Except for Sweden, all countries will enable CBDC access
without a bank account. The mentioned central banks aim to include banks (and partly other firms) as intermediaries for distributing minted CBDC units (two-tiered operating structure).
7. Only with full KYC
Source: CBDC Tracker
 Noteworthy Cross Border
CBDC Projects
Project Name Countries Involved Description Use Case

A project for creating a multiple CBDC arrangement for faster,

Multiple CBDC Bridge
cheaper, and more efficient transfers and foreign exchange Wholesale
(mBridge)
operations.

Explored a platform for international settlements, successfully

Project Dunbar building two prototypes for international settlements across Wholesale
multiple CBDCs.

Explored the cybersecurity implications of a two-tier,

Project Sela Retail
retail CBDC.

Tested interlinking and interoperability between different retail

Project Icebreaker CBDCs, exploring a model for permitting retail CBDC payments Retail
across borders.

Explored using automated market makers (AMMs) to facilitate

Project Mariana exchange between Swiss franc, euro and Singapore dollar on the Wholesale
wholesale level.

Source: CBDC Tracker

Lending
 Global Landscape Taktile - Germany
Konfio - Mexico
$ 24.7 Mn
$ 378 Mn

Biz2credit - US Decision Analytics and Scoring

Business Loan
$ 52 Mn
Credolabs - Singapore
Lulalend- South Africa $ 10 Mn
$ 41.5 Mn
Finda - South Korea
Avant - US Loan Comparison/ $ 52.8 Mn

$ 905 Mn Retail Marketplace

Loan Finanzero - Brazil
Creditas - Brazil $ 28.5 Mn
$ 873 Mn
Indebted - Australia
$ 72.5 Mn
Kueski - Mexico
Debt Collection and Resolution
$ 173 Mn
Fido - Africa
Receeve - Germany
$ 162 Mn Retail +Business Loan
$ 18 Mn
Zenda - UAE
$ 9.4 Mn
Affirm - US (Listed) EMI Conversion
and Down
$ 1.22 Bn
Payments
Zilch - UK Buy Now Onladder - UK
Pay Later
$ 406 Mn $ 326 K

Afterpay - Australia
$ 35.4 Mn
Alternate Structured/Syndication
Bondblox - Singapore
$ 6 Mn
Lending + Investment
LSQ - US Lending
$ 130 Mn
Plaid - US
Drip Capital - US
Invoice Discounting Platform/ Account $ 734 Mn
$ 85.1 Mn Trade Financing Aggregator
Factris - Netherlands Bankin - France

$ 73.3 Mn $ 30 Mn

Anglo Gulf Trade Bank - UAE

Skeps - US
Embedded Finance
$ 10.5 Mn

Clearco - Canada
$ 865 Mn

Uncapped - UK Bankxware - Germany

Revenue Based Financing
$ 119 Mn Credit $ 16.2 Mn
Lifecycle
Lendflow - US
Dianrong - China $ 13 Mn

$ 549 Mn

Lendable - UK Peer to
$ 289 Mn Peer Lending
Solo - US
Source: Tracxn $ 12.8 Mn
 Indian Landscape PERFIOS
OfBusiness
$ 155.1 Mn
$ 891 Mn
Credit Mantri
Lendingkart Decision Analytics and Scoring
Business Loan
$ 14.2 Mn
$ 232 Mn

Neogrowth Credit Vidya

MoneyView
$ 138 Mn $ 10.3 Mn
$ 218.6 Mn
Bank Bazaar
Early Salary Loan Comparison/ $117 Mn
$ 143 Mn
Retail Marketplace
Loan Wishfin
Kissht $ 16.7 Mn
$ 132 Mn
Credgenics
Moneytap $ 78.6 Mn
$ 95.3 Mn Debt Collection and Resolution Credit Mate (Acquired by Paytm)
Axio (Capital Float)
$ 3.9 Mn
$ 194 Mn
Retail +Business Loan MoneyTor
INCRED Financepeer $ 712 K
$ 162 Mn $ 41.9 Mn
Zest Money
EMI Conversion
and Down HomeCapital
$ 153 Mn
Payments $ 14.7 Mn
ProgCap Buy Now ShopSe
Pay Later
$ 111 Mn $ 11.8 Mn

Vayana Network
E PayLater
$ 18 Mn
Alternate Structured/Syndication
Wint Wealth
$ 19.9 Mn
Lending + Investment
$ 61.7 Mn Lending Grip.invest

KredX $ 4.7 Mn
Invoice Discounting Platform
$ 33 Mn $ 9.1 Bn Finvu
M1 Exchange Account $ 2.5 Mn
Aggregator
$ 23.5 Mn ONEMONEY (Acquired by K Fintech)
Rupeek
$ 164 Mn $ 299 K

Gold FinBox
IndiaGold
$ 45.93 Mn
Loan $ 16.1 Mn

Embedded Finance BharatX

Ruptok
$ 4.8 Mn
$ 3.5 Mn
Get Vantage Buildd
$ 41.5 Mn $ 2.5 Mn

Velocity
Revenue Based Financing GetLend.in
$ 30.3 Mn Credit $ 3 Mn
Klub
Lifecycle
WonderLend Hubs
$ 12 Mn
$ 1.7 Mn
LiquiLoans
$ 15.63 Mn

Faircent Peer to
Loan Pipes Credit Fair
$ 12 Mn Peer Lending
$ 25 Mn
LendenClub
$ 12 Mn
Source: Tracxn
 Source: Industry experts

Banking Stack
Enterprise Business Applications

Retail Banking

Finnacle Mambu Bancs Flexcube LOS Core Banking

Cmdty & Inventory Funding Credit Cards

Traditional banking structure Corporate Banking

CBS-FCC Custody Gold Bullion LOS Treds

Digital Channels
Channel Finance Cashin Factoring Trade-on-Net
Wallet
Retail Internal & Partner
Treasury
Mobile App Apps
Corporate
Murex Credence CCIL Swift TEMS
SME

Internal Networks & Control

Website
Foreign Exchange Online Bloomberg Reuters
RNB/CNB Branches
Risk
Omni Channel marketing
and acquisition platform Business Process IRS/Scoring Ops Risk Mgmt FRM Head Office
and Workflow
Management National Operating
Retail CX Centres
Other Support Apps
Onboarding & Regulatory Structure API Cordys
CRM Sharepoint Audit Mgmt Infra Mgmt HRMS
Engine
E-KYC, CKYC, CIBIL, NPCI, AML, etc
Cflow
Corporate CX Quality Control
Inrule
Payments
Direct Channels Master Data
Management NEFT/SFMS BBPS IMPS AEPS Payments
ATM/POS/Kiosk Hub
CTS-CHI NACH ABPS UPI
Switch API Banking Block Chain Robotic
Innovative Process
Technology Customer Communications
Branch Open Banking Big Data Automation
Stack
SMS E-Mail E-Stmt E-Reports
Contact Centre Chatbots Sim Overlay PWA Workflows
Advance Generation Push Notification

Business Data Management Enterprise Data Bus

Intelligence Platforms Hadoop Org Data Warehouse Self-Service Business Intelligence OFSAA - ALM, FTP LRM Tableau Document Management System
& Analytics

DC – Technology
Stack Active Directory Anti-Virus File & Print Server Back-Up Storage IT-CRM MS Exchange & Arrival Citrix & VMware HighSpeed Networks EULA Office 365 Worklight
Cloud Services
DC & Branch
Internal IT Branch Networks Branch Hardware Virtual Patching
Sites
Infrastructure

Mobile Device Management Network Security PIM/IDAM/MFA Log Management SIEM Web Application Firewall Advanced Persistent Threats File Encryption Datamasking Dataloss Prevention
Information
Security
Database Activity Monitoring API Security Hardware Security Module
 Banking Stack
New stack built on microservices architecture
Microservices Architecture

Branch/HO

Day begin/ end

esabataD
Branch/HO UI Engine
Integrated Channel DB
Connector

enignE noitpyrcnE
Day begin/ end Auth
Module ATM/POS
MYSQL
Integrated Channel Maker/
Third Party Vendors MSSQL
Interface Checker/
Roles/
ATM/POS Oracle
Rights Integrated Channel
PostgreSQL
Third Party Vendors
ATM/POS

pukcaB
Third Party Vendors

App Server

Source: Industry experts, Varanium Research

 Micro Services Architecture
Service Registry

API Gateway Auth Service

Configuration
Service

Distributed
Tracing

User Fund transfer Payment Notification Core Banking

service service service Service Service

Application
Data Storage monitoring

Message Queue

Log Management API Documentation

Source: Industry experts, Varanium Research
 Loan Operating System
Evolution over decades

Particulars Upto 2000 From 2001 - 2015 From 2015 onwards

System Architecture Monolithic & Tight coupled systems Monolithic & Tight coupled systems Open System and auto scalable

Integration Difficulty High Medium Low

Support Multiple App

Data Storage Own Server based Own Server based Cloud based

Cost One time set up fee and AMC One time set up fee and AMC Pay per use/ Subscription based

Implementation time High Medium Low

In-built security within cloud and additional

Data Protection Security talent required Security talent required
layer developed by system providers

Tech Updates Frontended Frontended Backended

in-built Credit Assessment Manual and file upload Manual and file upload Available through BRE

Processing timelines 15 to 30 days 7 to 10 days 1 to 3 days

Regulatory Reporting Manually filed using data warehouse Manually filed using data warehouse Automated through System

User Public/Private Sector Banks NBFCs Banks/NBFCs/Fintechs

Source: Industry experts, Varanium Research

 Loan Operating System
Tech Stack

Data Verification (API Driven)

Aadhar NSDL Bank Statement ITR & GST OCR Address Verification

Underwriting, Sanction & Decisioning

Hunter De-Dupe CERSAI Portals BRE Bureau

E-Sign E-Stamp E-Mandate Video PD CKYC AA Framework

Collections Platform

3rd-Party Data Usage External Data analytics Social Media System Triggers

Behaviour Tracking Segmented Approach Auto Debit PG Link UW Feedback

Source: Industry experts, Varanium Research

 Emerging Trends
Parameters Litigation Finance
Meaning An unrelated third party to the litigation
provide funds to cover the legal fees.
Litigation finance is at an infant stage in India.
Underwriting Expense to claim ratio, Judiciary Authority,
Parameters Case type (commercial vs consumer dispute),
Probability of recovery, Financial merit of both
the plaintiff & the defendant.
Revenue Model Processing fee (only applicable abroad)
Share in claim amount on successful
outcome of the suits. (prevalent in India
currently)
Benefits Creates a separate asset class for Investors
Challenges No particular guidelines or policies to
regulate this alternative lending model.
Lack of clarity on licensing (NBFC/AIF/CIS
license ) requirements to function
Source: Industry experts, Varanium Research
Green Finance
Structured financial activity (loans, debt,
investments) for a better environmental
outcome, resilient future via development of
green projects, minimize the climate impact of
existing plans, or both.
Parameters largely remains the same as
traditional lending. Incrementally, the project
risk is also assessed. (Eg: energy generation
and environmental impact, IOT based
performance capturing, type of battery/solar
panels)
Interest, carbon credits, subsidies and various
benefits announced by Governmental bodies
Enabler for more climate impact projects
Regulatory push and support (green
deposit scheme)
Depositors have no compelling reason to
switch as interest rates are lower or par
with fixed deposit offering.
ALM mismatch, Yearly audits, High amounts
of compliance and transaction load.
Income Sharing Agreement
Education Funding with repayments linked to
future salary, unlike a fixed EMI under
traditional student loans.
Potential for future income, Course tenors,
Value-add to borrower from the course,
Existing income & knowledge. One may require
a co-signer depending on the course .
Share in the future incomes generated
post course completion.
Standard ISA terms: share in the future
income, sharing tenure, minimum income
levels and may/ not have a payment cap.
Financing without a co-signer.
Student Loans repayment continues even if
income drops. ISA's do not take payments
if income drops below minimum threshold.
Variable payment amounts based on future
income levels.
Refinancing options are not available.
Standard borrowing limits. Student loans
are borrower-specific
 Emerging Trends
Parameters Gig Economy Finance Gamified Underwriting

Meaning Financing against prediction of future revenues to be generated by Generation of non-invasive instant credit score for new & existing
social media backed catalogue. customers using psychometric data, device data, digital
interactions, etc.

Underwriting Viewership data, Subscriber count, type of content, Potential brand Gamified Psychometric Assessment tool to assess personal
Parameters partnership, etc. of the content creator. traits (literacy, spending habits, thought process, response time)
of prospective borrower.
Alternatively, some players are using metrics like : data points
from digital interaction with form, device used, OS used, mode
used (incognito/normal), VPN usage, etc.

Revenue Model Financier takes licenses for existing videos for certain months (say Monthly subscription or per API fee
till target IRR achieved).
Generates additional income by posting videos on other platforms
or in other languages.
Leverage content and creator network to get additional revenue
from brand partnerships

Benefits Enables content creator to invest in creating content. (Eg; buy new Alternative to traditional assessment model relying on historical
camera, travel, etc). credit data
Enabling Credit for NTC segment.

Challenges No set model for underwriting. Low adaptability due to few use case.
Branding Risk: Account Ownership is transferred from content Standalone reliance on the model will not be possible.
creator to financier. Hence, new content could only be revenue-
generating, which may not be in niche category.

Source: Industry experts, Varanium Research

Lending Growth & NPA Trends
PSU Private NBFC PSU Private NBFC Retail MSME
30 28.77 60 55.8
40,000 37,165
24.82 15.8%
22.85 46.33 24%
16.4% 41.66
16.9% 24.9%
30,000
20 40 25,866 24,877
45.2% 24.2% 22,279
41.7% 35.8%
39.8% 20,000 18,215
35.0%
34.2% 13,297
10 20
10,000
43.3% 41.9% 39.0% 40.2%
41.6% 40.1%
0
0 0 FY21 FY22 9M FY23
FY21 FY22 FY23 FY21 FY22 FY23

MSME - AUM (in INR lakh crores) Retail - AUM (in INR lakh crores) Fintech - AUM (INR in crores)
Note: AUM as of 31st March 2023 is INR 60,922 Crore

PSU Private NBFC PSU Private NBFC Retail MSME

5% 5% 6% 10%
5% 5.4%
4.6% 8.98%
4.9%
4%
7.5%
3.6%
3.7% 4% 4.1%
3% 3% 4.78% 4.76%
3.4% 5%
2.4% 3% 5.51%
3.1%
2%
2% 2% 2.5% 2.96%
1.4%
1.6% 1.8% 2.44%
1% 1.4%
0%
0% 0% FY21 FY22 9M FY23
FY21 FY22 FY23 FY21 FY22 FY23

Retail NPAs NPA Trends for Fintech

MSME NPAs

Source: RBI, BCG, Equifax, Varanium Research

Insurance
 Global Landscape

Lemonade - US (Listed) Bolt Tech - Singapore

$ 644 Mn $ 443 Mn

Clearcover - US
Insurance Covergenius - US
$ 329 Mn API
Providers $ 165 Mn
Insurance
Manufacturers
Marshmallow - UK
Sure - US
$ 116 Mn
$ 123 Mn

Shift - France

Upsie - US Micro/Contextual Insurance Insurance

Analytics
$ 320 Mn

Insurance
$ 26.7 Mn
Tech
Clara Analytics - US

$ 47.9 Mn

Insurify - US

$ 154 Mn
Insurance
Comparison Eligible - US
Claim
Platform Management
$ 27.9 Mn

Qoala - Indonesia

$ 87.5 Mn

Source: Tracxn
 India Landscape
Zopper

$ 96 Mn
Digit Insurance Insurance
API Providers
$ 544 Mn Insurance Riskcovry
Manufacturers
$ 10 Mn
Acko

$ 507 Mn Cropin

Insurance $ 65 Mn
Analytics

Aureus Analytics

$ 4 Mn

Coverself
PB Fintech (Listed)
$ 10.35 Mn
$ 675 Mn
Insurance Comparison

Turtlemint
Platform
Insurance Tech Vitraya Tech

$ 7.71 Mn
Claim
$ 252 Mn
Management
$ 3.72 Bn
Insurance Samadhan

$ 4.28 Mn

One Assist

$ 53 Mn Micro/Contextual Easypolicy (Acquired by

Insurance Unilazer Ventures)

Web Based $ 13.1 Mn

Toffee Aggregators

$ 12.5 Mn

Insuremile

$ 350 K

Source: Tracxn
 Insurance Stack
Front end (Web/Mobile) Customer Portal Admin Portal Claims Portal

3rd Party Data

API Gateway Integrations

Core Policy
Claims
Product Admin Payment
Core Capabilities Campaign (Automation
Quote & Buy Design and Rating Engine (MTAs, Providers
Management and
Build Renewals,
Management)
Referrals)
Social Feeds
Data & Analytics

Other rating
feeds
Core Policy
Claims
Product Admin
Supporting Capabilities Campaign (Automation
Quote & Buy Design and Rating Engine (MTAs,
Management and Fraud/Credit
Build Renewals,
Management) Checks
Referrals)

Traditional PAS Functionality

Additional current-day PAS Functionality

Source: Industry experts, Varanium Research

 Insurance: India vs World
15%

11.7%
11.1%

10% 9.5%
8.4% 100
91
7.1% 7.0% 5%
4.2% 74
75
5% 4.2% 4% 3.7%
3.3%
55
3% 2.7% 50

0%
2%
USA UK France Japan Switzerland India World
25
Insurance Penetration - 2021 1%
7.6
10,000 0
0%
2000 2014 2018 2021 2000 2014 2018 2021
8,193

7,500 Insurance Penetration

6610 Insurance Density (in $)
5273
5,000 4190
3202
India’s insurance density stands much below at $91 in comparison to the
2,500 world average of $874.
874
91
0
USA UK France Japan Switzerland India World

Insurance Density - 2021 (in $)

Density means premiums collected by insurance companies to the country's population.

Source: IRDAI Reports

 Challenges in penetration in India
Claim Settlement
The process is largely
paper-driven and lack of
innovation by insurance
intermediaries.
Removal of Tax Deduction
New Tax Regime removes
the deduction on life
insurance premium. This
may act as a deterrent to
increase in life insurance
coverage.
Mis-selling of policies
Majorly done by banks
and brokers. Additionally,
the rejection rate of mis-
selling complaints has
been high at more than
50%.
No Sachets or Bundling Consumer Mindset
Whitespace in bite-sized A large section of
customer-centric and consumers still Look
embedded products insurance as an
(bundling insurance with expense, rather than as
purchase of third-party protection cover.
goods/ service).

50,000 60 58

51

40,000

66%
40 36
30,000
31
67%

20,000 68%
68%
Mis-selling
20
complaint
10,000 Rejection Rate

0 0
2019 2020 2021 2022 2019 2020 2021 2022

Reported Mis-selling Complaints Reported Mis-selling complaints per 10,000 policies

Source: IRDAI, Annual Reports

 Initiatives to Drive Penetration
Proposed, but yet to be launched
Bima Sugam
Marketplace
It is a marketplace for buying, selling and
post sales services (renew, policy
servicing, and claim settlement.)
Initially, platform will serve as a databank
and subsequently list insurance products.
Brokers, web aggregators, insurance
companies, and other intermediaries will
be part of the platform.
Further, onboarding the Health Claims
Exchange will help in creation of an
unified source for claims and
policyholders' medical history, reducing
the number of insurance frauds.
The platform is expected to have cheaper
premiums and would have a direct and
intermediary-assisted mode
All the policies will go to insurance
repositories via e-Insurance Account –
digitizing the claim settlement process
Potential threat to existing web-based
insurance aggregators
Source: IRDAI, Varanium Research
Bima Vahak Bima Vistaar
Distribution Network Product
It is a women centric distribution channel It is an insurance product aimed to provide
to distribute insurance products and comprehensive cover for life, health & and
increase insurance coverage in rural India property of the rural population.
at Gram Panchayat level, similar to the It will be a Bundled parametric insurance
Bank Correspondent model product offering benefit-based insurance
Individual Bima Vahak will be appointed plans
by a Corporate Bima Vahak (engaged by Aimed at rural population in the event of
an Insurance Company) or directly natural disasters, such as floods and
appointed by an Insurer earthquakes
They will solicit insurance business and
facilitate policy and claims servicing.
KYC & AML compliance shall remain
Insurer’s responsibility for Bima Vahak
sourced policies
Limited product range - Sell and service
the Bima Vistaar product and other IRDA
approved products
A Bima Vahak can work with only 1 life
insurer, 1 general insurer, and 1 health
insurer and, where permitted, with the
Agriculture Insurance Company of India
Ltd
Initiatives to Drive Penetration
Proposed, but not implemented yet

Managed General Agencies Composite Licenses

MGAs are insurance agents who would
carry out functions similar to insurers
MGAs can onboard customers, manage
products, underwrite customers and share
the risk with larger insurance
manufacturers.
MGAs will provide an opportunity to fill the
gap in the current insurance distribution
setup by offering specialized insurance
products, expanding distribution
channels, using technology to improve the
customer experience, offering value-
added services, and focusing on customer
education.
This would increase the scope of
insurance intermediaries.
MGAs currently don’t exist in India but
exist in other countries such as Singapore,
UK & US and have played an important
role in insurance penetration.
Particulars Standalone Licenses Composite License
Segment-wise license required
(Life, General and Health)
Economies of Scale
Separation of Business
Bundled Product Offerings
Difficulty in supervision of risk
(supervise composite risks and
composite capital requirement)
Potential diversion of funds for
different line of business
Separate a/c for receipt and
payments of each class of
business

Source: Varanium Research

Emerging Trends in Insurance
AI-based policy analysis & and recommendations

Product Underwriting & Risk Policy Aquisition & Claims

Marketing Sales & Distribution Finance & Accounts
Management Mgmt Servicing Management

Risk Acceptance
Acquisition & Sales In-force Business A/C Receivable &
Policy Validation
Mgmt Admin Payable
Product Definition Quotation
Sales Tracking & Rewrite, Reissue, Collections Proc.
Product Valuation
Market Monitoring Cancellation Loss Reserve Asset Mgmt
Configuration Referrals &
Development Distribution Policy Endt Creation Financial Acct.
Product Negotiation
Product Channel Mgmt Policy Claims Litigation Costing, Budg &
Maintainance Rating
Branding Commission Mgmt Reinstatement Claims Financials Taxations
Product Filing Management
Sales Planning Policy Renewal Payroll Acctg
Product Testing Reassurance
Direct Sales Issue Quote Book Keeping
Facility
Sales Execution Issue Policy Audit
Loss Control

Channnel Claims Commission

Product Design Risk Inspection Quick Quote
Support Registration Processing

Claims Validation
Claims
Market &
Assessment Statement
Research Contracts &
Actuarial Process Account & Contract Risk Analysis Claims Preparation
Analysis Portfolio
Product Pricing Management Risk Monitoring Adjudication Remittance
Market Management
Fraud Mgmt Processing
Promotion
Claims
Subrogation

Source: Swiss RE
Low Impact Medium Impact Significant Impact
 Emerging Trends in Insurance
Use cases for AI in Insurance
AI for underwriting
Leverage more data from images,
wellness records, sensors and convert
to actionable insights. Use
supervised learning for U/W
processes like triaging. Use
unstructured data in decision-making
and understanding exposure. This will
enable customised coverage and
pricing of policies.
Automate repetitive knowledge tasks
Analysing documents, document categorizing, data extraction & summarizing.
Classification of claims into different categories for triaging and routing.
P2P/Social Insurance
Peer-to-Peer (P2P) insurance is a risk sharing network where a group
Improved claims processing of individuals pool their premiums together to insure against a risk.
All parametric policies meeting the
claim requirement can be Challenges
automatically processed.
As the size grows overtime, maintaining the same group profile
would be difficult, defeating the main cause of P2P Insurance
P2P insurance premiums are costlier
Understanding requirements
Understanding purchasing patterns,
tailor offerings and optimizing sales P2P Insurance Traditional Insurance
processes.
Individuals in the pool have Individuals in the pool have
Pool Profile
similar risk profiles/goals varied risk profiles/goals
Alignment Low, any excess post claim
between disbursal is used to reduce High, any excess post claim
Insurer and premium payments or charity disbursal is kept as profit
policyholder cases

Potential Issues Probability of

Low High
IP issues on the training data used for the LLMs Fraud
Potential risks in the form of data quality issues, data mining biases
Non-compliance risk with data privacy regulations Reinsurance
of the pool

Source: Swiss RE, Varanium Research

 Emerging Trends in Insurance
Parametric Policies
Parameters Traditional Insurance Policies
Indemnify the insured based on
the amount of damage suffered
Meaning
due to insured peril – Indemnity
based model
Payment Trigger On Actual Loss
Assessed actual loss amount post
Recovery
claim investigation
Claim Process Complex & Time Consuming
Customization Low
Traditional Use-cases for Life
Use Cases
Insurance, Health Insurance
Source: Varanium Research
Parametric Insurance Policies
Non-traditional insurance
product that offers pre
specified payouts based upon
a trigger event.
On occurence of event with
parameter above the listed
threshold
Pre-agreed payment structure
Transparent, Index (parameter)
based, quick claim settlement
High
General Insurance policies –
Weather based crop insurance,
warehousing, natural calamity-
based protection
Policy Type Index Considerations
Weather-Based Index: Rainfall (accumulated
precipitation, precipitation type, and
probability of precipitation: off-season, deficit/
excess/ inadequate rainfall distribution),
Agriculture Parametric
temperature (high/low), relative humidity,
Policies
windspeed, sunshine hours
Others: Chilling requirement, Pest-disease
congenial climate, Soil conditions
Departure delay duration, Cancellation reason,
Missed connection severity, Airport closure,
Flight Delays &
Flight distance (longer hauls), Airspace
Cancellation Policies
restrictions, Strike/regulatory restrictions,
Airport congestion
Storm Intensity (scale of 1- 5 [max damage] ),
Vessel Size, Route taken, Cargo Type,
Marine Insurance
Environmental Conditions on the route, Port
Policies
Congestion, Piracy Risk zone,
Weather based Triggers
Wealth Tech
 Global Landscape Acorns - US

$ 588 Mn
Microsavings
OpenGamma - UK App
$ 74.9 Mn
Toranotec - Japan

Analytics $ 26.4 Mn
Quant Insight - UK E-Toro - Israel
$ 10 Mn $423 Mn
Social
Investing Follow - US
Stash - US
$9 Mn
$ 448 Mn New Age
Investment Opinion
Robo Advisory Platform Trading Kalshi - US
$ 36.1 Mn
Betterment - US Wealth Tech
$ 335 Mn Flink - Mexico
$ 70 Mn
Private Market
Investing
Groundfloor - US
$ 30.2 Mn

Wealthpilot - Money
Management Robinhood (Listed) - US
Germany
$ 5.73 Bn
$ 157 Mn Domestic
Ajaib - Indonesia
Angel List - US $ 245 Mn
New Age
$ 100 Mn Brokers
Private Marketing Scalable - Germany
Investing
Cross- $ 320 Mn
CB Insights - US
border
$ 10 Mn Gotrade - Singapore
$ 22.5 Mn
Source: Tracxn
 Upstox

$ 220 Mn India Landscape

ScripBox
SAMCO $ 96 Mn
Domestic
$ 19 Mn Robo- Fisdom
Advisory $ 44.3 Mn
Zerodha
New Age
Brokers
Kuvera
Vested
Cross $ 10 Mn
$ 24 Mn Border
IndMoney

Stockal $ 159 Mn

Groww $ 12.5 Mn Money OneStack

Management App
$ 393.2 Mn $ 2.24 Mn

Smallcase StackFinance
New Age Investment
Platform $ 459.4 K
$ 71 Mn

CubeWealth Wealth Tech

Tracxn
$ 5.1 Mn
$ 17 Mn

$ 3.18 Bn Private Market

Investing
PropertyShare

$ 52 Mn Let's Venture

Fractional $ 3.39 Mn
Wintwealth
Investment
$ 19.93 Mn
Heckyl
Grip.invest
$ 8.5 Mn
Jar
$ 4.7 Mn Analytics
Trendlyne
$ 62.3 Mn
Platform

$ 2.64 Mn
Deciml Micro Savings
App Marketsmojo
$ 1 Mn
$ 444.5 K

Spare8

$ 770 K

Source: Tracxn
 Wealth Stack
Front Office Middle Office Back Office

Portfolio Analytics Trade Confirmation & Settlement Fund Accounting

Investment Selection & Research

Systems
Investment Accounting

Portfolio Construction Valuation

Client Reporting
Pre-trade Analytics

Performance Analytics & Distribution Fund Administration

Compliance Systems

Order and Execution Management Regulatory Reporting Systems

Systems

Risk Management Systems Custody Systems

Internal APIs Internal APIs

Data Management

Referrence Data Transaction Data Corporate Actions Positions Derived Data

Source: Industry experts (Joshua Lloyd-Lyons)

 Wealth Management Process
Traditional Wealth Management Process Robo Advisory Process

Questionnaire Questionnaire Goal

HNI/UHNI Mass Affluent Determination
( Physical/ Digital ) (Digital)

Curated Portfolio Profile Creation Profile Creation

(Equity, Debt, (Conservative to Suggest Mutual Engine
(Conservative to
Alternates) Aggressive) Funds* (Robo Advisory Engine) Aggressive)

Customer Service Customer Support

Investment (Digital/Chatbot
(Physical meetings/ Investment
telecalling)
Tele-calling)

*Started with mutual funds and now suggets other products as well.

Source: Varanium Research

 Leading firms
Largest robo-advisors by AUM in the US Leading firms based on capital raised

Online robo advisory and stock

901
trading platform
Company AUM Clients

Employer-enabled retirement
500
$206.6 billion 1,100,000 planning
(Vanguard Digital and Personal Advisor)

Automated investment and

$65.8 billion 262,000 447
(Schwab Intelligent Portfolio)
robo-advisory platform

$26.8 billion 615,000 Automated 401K platform 344

App-based automated
$21.4 billion 307,000 investment & retirement 335
planning platform

$16.1 billion 26,000

Robo advisor and financial
(Previously Personal Capital) 205
planning platform

Note: The numbers are in $ million

Source: Tracxn, Forbes

 Microsavings
Spending to Investing Process

Total Funding (in $)

Individual Odd Value Shopping Reading SMS or Email

587,836,188

62,276,330
Investments Microsavings Rounding off value
(MF/Digital Gold) App (to near 10s, 100s, 1000s) 26,400,000

10,000,000

Snapshot of Microsavings 1,000,000

Effortless saving
Frictionless and seamless journey 770,000
Doesn’t require to change spending behavior
Challenge to build AUM

Source: Tracxn, Varanium Research

 Key Components for AlgoTrading
Algorithmic Trading Engine is the solution core, where, for example, trading strategies are created, tested and operated using historical and real-time data,
managing interactions with other solutions components and providing users with Analytics and reporting capabilities

Market Data Adapter Algorithmic Trading Engine Exchange/Broker Adapter

Real-time Price Data Strateov Management Monitorina Orders

Historical Price Data ML Model Management Job Scheduling Trade Executions

Instrument Data Instrument Management Analytics Notifications

Alternative Data Order Management Reporting Account Management

Position/Risk Management Backtesting

Market Data Adapter feeds engine with Exchange / Broker Adapter manages the
different data types, such as real-time interactions with the exchange and/or
market data, historical price data and Broker, for example to place/revoke
others. orders, get orders status and other
Data Storage tasks.

Historical Market Data Orders / Trades

ML Data / Models Strategy Performance

Data Store provides a durable and secure data repository, used by engine.

Source: AWS
Retail Algo Strategy Platforms
& Marketplace
(Pre-approved Algos)
Condition Builder
Data Adaptors

Strategy Signal Generation

Price Execution Logic

Positions/Order Management System

Broker

Exchanges
Source: Zerodha Streak, Tradetron
 Group Savings & Digital Chit funds
Digital application
Group registration and its members using a digital
solution on a tablet or by using a USSD code.
Training
Train lead trainers to on-train the remaining group members in mobile
app, business 8888 planning, budgeting, record keeping, and safety
Integration and health practices.
Members to consolidate their savings and pay through the
mobile app that is integrated to the core banking software.
Building trust and transparency
Savings and payments to the bank are verified by group officials.
Notification messages of the savings and loan repayments.
Group management and support
Verification of transactions.
Address queries raised by members through the digital app.
Loan application
Loan application is applied through a software application or by
using a USSD code.
Documentation and approval
Approvals are done electronically through verifications by
group officials and bank staff.
Building trust and transparency
Instant message confirmations on payments.
Arrears notifications to the individual members.
Access to loan balances and savings.

Source: Varanium Research

 New Age Alternative Investing
Platforms
Aggregators Crowdfunding & Fractional Funds

International Revenue Based Pre IPO Equity, Deal Intelligence and M&A
Equity Financing

Debt

Wine Investments Farm Financing

Lease Financing + Fivesto

EV Financing U RJ AGRO W Movie Financing

Fractianal Real
Estate Brand Loyalty Startup Micro-
based Debt investment

Artwork Angel Investing

P2P

Source: Tracxn, Varanium Research

Future
Trends in
Fintech
Conversational & Embedded Finance
using ChatGPT
How ChatGPT Plugins work 2

Related to Astronomical pictures?

No Is there any endpoint available tp Yes

request in the Astrodialy plugin
ChatGPT plugins are
extensions that can be
added to ChatGPT, a
1 Request the Endpoint Use the astrodaily large language model
4 with a parameter of Plugin chatbot developed by
Give me a search “Earth” OpenAI. These plugins
picture of NASA provide ChatGPT with
3 additional capabilities,
5 such as the ability to
access financial data,
generate financial
Send the list in reports, and provide
JSON Format investment advice.

7 6
You
8

Send Response in
human language List of items each
one contains a link NASA API
Source: OpenAI
ChatGPT Plugins
Plugin Description Use cases

Tracking the performance of stocks, bonds, and other assets. Providing

Helps users manage their investment portfolios.
recommendations on how to improve the portfolio's risk-adjusted returns.

Provides users with access to real-time regulatory data. Tracking changes in regulations that could affect a company's business.

Providing information on a company's financial performance, its competitive

Helps users research companies.
landscape, and its legal and regulatory risks.

Allows ChatGPT to interact with other apps, such as Google Automating financial tasks, such as tracking expenses or generating
Sheets and Docs. reports.

An artificial intelligence investment exploration tool powered Getting real-time and historical market data, including asset prices, news,
by OpenAI's GPT-4 technology. research, and comprehensive financial analysis.

Allows ChatGPT to access computation, math, curated

Financial calculations and research.
knowledge, and real-time data.

Providing information on a stock's technical indicators, its valuation, and its

Helps users analyze stocks and financial data instantly.
potential for growth.

Provides users with access to a variety of financial data,

including company financial statements, analyst ratings, and Researching companies and making investment decisions.
news articles.

Note: Now there are more than 1000 ChatGPT plugins

Source: ChatGPT
Generative AI use cases in Fintech
Large Language Models are changing the way Use Cases Description Examples
we interact with the computer. The following
table outlines various subdomains within which
Generative AI can be a game changer. Generative AI can be used to create personalized
Personalized Copy.ai, Phrasee,
marketing messages that are tailored to individual
Marketing Persado
customers.
Select Pre-trained LLM
OpenAI, Google, Meta AI, Microsoft
Research, Hugging Face, Anthropic Generative AI can be used to automate repetitive UiPath, Automation
Process Automation
tasks such as data entry or document processing. Anywhere, Blue Prism

Specify NLP Task

Generative AI can be used to detect fraudulent
QA/Chatbots, Extraction, Summarisation, Fraud Defense Feedzai, Forter, Kount
activity by analyzing patterns in data.
Auto-correct, Translation, Classification

Useful for assessing risk by analyzing data from Ayasdi, DataRobot,

Risk Assessment
Prep Enterprise Training Data multiple sources. ZestFinance
Prioritize use case(s), Gather training and
validation data, Annotate data
Can provide personalized support to customers Poly.ai, Ada, Intercom,
Customer Success
by analyzing their behavior and preferences. Zendesk
Select fine-tuning strategy
Prompt engineering, LLM retraining, Product AI helps create new products or services based on OpenAI Codex, GPT-4,
RLHF Development customer feedback and preferences. DALL-E

Deploy Enterprise Model AI Avatar using Deepfakes, Voice cloning and Synthesia, ElevenLabs,
Persona Clone
Taking enterprise data into context Large Language Model GPT4/Pi
applying selected fine-tuning strategy

Source: Varanium Research

 Rise of Generative AI
Large Language Models are changing the way we interact with the computer.

Following table outlines various subdomains within which Generative AI can be a game changer.

Select Pre-trained Large Specify NLP Task Prep Enterprise Training Select Fine Tuning Deploy Enterprise
Language Model (LLM) Data Strategy Model

Open AI QA/Chatbots Priortize use cases Prompt Taking Enterprise

Google Extraction Gather training Engineering LLM data into context
Meta AI Summarization validation data Retraining RLHF applying selected
Microsoft Research Auto-correct Annotate data fine-tuning strategy
Hugging Face Translation
Anthropic Classification

Source: Varanium Research

Privacy Related Solutions
Data Privacy Brokers
They provide a personal data dashboard that allows users to track and manage their personal data online. They
provide users with a comprehensive overview of their online footprint, including:
Which websites have your data?
What data do they have about you?
How are they using your data?

It also allows users to take steps to protect their privacy, such as:
Requesting access to your data
Deleting your data
Opting out of data sharing

Privacy as a Service Startups

They provide a privacy-preserving data vault that allows businesses to store and share sensitive data without
compromising the privacy of their users while reducing compliance burden.

Zero-knowledge encryption: Encrypts all data before it is stored in the vault, so even Skyflow cannot access the
data.
Homomorphic encryption: Uses homomorphic encryption, which allows businesses to perform computations on
encrypted data without decrypting it.
Tokenization: Tokenizes all data before it is stored in the vault, so the data is not linked to the user's identity.
Differential privacy: Uses differential privacy, which adds noise to data so that it is not possible to identify individual
users.
Federated learning: Using federated learning it allows businesses to train machine learning models on data without
collecting the data in a centralized location.
Secure multi-party computation: Provides secure multi-party computation, which allows businesses to perform
computations on data without sharing the data with each other.

Source: Varanium Research

 Pay with Social Currency

AI Scoring System Brands Credit Card

Various Social Media Social Influencer
Accounts

Step 1: Influencer Connects Social Media Accounts

Step 2: An AI social scoring system is determined by the number of followers, reach, engagement, frequency of posts, and other such
parameters. This takes away the sole focus from the follower count to the real and organic traction that the person acquires on
a daily basis.

Step 3: The next time influencer buys something from partner brands, they post about it while tagging the brand.

Step 4: Based on the score money would be credited to the card, thus digitizing word of mouth. cashback ranges from 30% all the way
up to 100% of the purchase value within 30 days.

Source: Varanium Research

 Enterprise Blockchain
Enterprise Blockchain provides immutable framework with better transparency.
It eliminates intermediaries and save reconciliation efforts as everyone on the network have synced ledger.

Network Consensus Examples of Network Types

Description Access
Type Mechanism

Anyone can read Proof-of-Work Open Permissionless Closed Permissionless

Public Anyone can join and (Bitcoin) (Company IPR)
and write data on (PoW) or Proof-of-
Permissionless participate in the network
the blockchain Stake (PoS)

Delegated Proof of
Stake (DPoS), Hybrid
Anyone can join the
Only authorized Practical Byzantine (ID Schemes)
network, but only
Public participants can Fault Tolerance
authorized participants
Permissioned read and write data (PBFT), Proof of
can participate in the
on the blockchain Authority (PoA),
consensus process
Proof of Elapsed
Time (PoET) Open Permissionless Closed Permissionless
(Asset tracking) (HR Compilance)
Access to the network is Only authorized
Private restricted to a specific participants can
PBFT, PoA, PoET
Permissioned group of individuals or read and write data
organizations on the blockchain

Source: Varanium Research

 When to use Blockchain
No
Do you need a database?

Yes
No
Does it require shared write
access?
Yes
Are writers’
Yes
interest unified?
Are writers known and trusted?
No
No
Yes
Do you want/need to use a Don’t use blockchain
trusted 3rd party?
No Where is consensus
Yes defined?
Do you need to control
functionality? Intra firm
No
Inter firm
Private
Do you want transactions to be
private or public?
Public

Use a public blockchain Use a hybrid blockchain Use a private blockchain

Source: Varanium Research

About Varanium
Global Multi-Asset Management Firm, focused on Emerging Market Strategies, India in particular
Managing ~$1 billion in Assets Under Management (AUM) with offices in Mumbai, NCR, Singapore and Dubai

T.S Anantakrishnan Sajeeve Thomas

Founder & CEO Principal

Ex - GSAM, Shumway, Prime, Religare Ex - Citibank & Shinsei Bank

MBA - NYU Stern, BE - IITR, CFA & FRM PDGBA IIMA

Portfolio Management Alternate Investment Offshore Products

& Advisory Management
Authors of the report
Aparajit Bhandarkar
Managing Partner, Varanium NexGen
20+ years of experience in Investment
Banking, Investor Relations and Startup
Investments
Ex-CEO Dice Fintech Ace - a fintech
venture fund
Ex-President, Merchant Banking, Yes
Bank
Ex-Head of Strategy, Jio Payments Bank
MBA - NYU Stern, CFA; CA
Vikram Pandya Aman Jain
Head of Research, Varanium NexGen Vice President, Varanium NexGen
5+ years of experience in the financial
15+ years of experience in Banking,
services domain ranging across
Technology and Fintech domain
valuations, due diligence, equity
Currently Director of Fintech at SP Jain
research, and transaction structuring.
School of Global Management. Awarded
Associated with Varanium Capital for
CA 'Educator Of The Year' by ICAI by Hon'
more than 3.5 years.
Nitin Gadkari.
BFM (Financial Markets), CA, CFA
Ex-Strategic Advisor at Yes Bank, mentor
of various fintech startups
CA, CFA, CISA
Authors of the report
Nawal Bachhuka
Principal, Varanium Venture Debt
21+ years of experience in NBFC and
Corporates of which last 15+ years are in
underwriting and Risk Management.
Managed lending book of INR 3500 Crore
in MSME space across West Zone.
Ex-ABFL – An NBFC arm of Aditya Birla
Group, Manager – F&A at Banswara
Syntex, Euro Vistaa etc.
Chartered Accountant
Yash Vora Trushna Rathod
Associate, Varanium Venture Debt Content, Varanium Capital
5+ years of experience in content writing
Associated with Varanium Capital for a
Strong social media and marketing
year
background
Previously Worked at Mumbai Angels.
Associated with Varanium Capital for a
Qualified CA from the Institute of
year.
Chartered Accountants of India and
Graduated from Ruia School of Business
Bachelor in Financial Markets - N.M.
Management
College of Commerce and Economics,
Cleared CFA Level 3
Disclaimer

This document has been prepared for your information and does not constitute any offer or commitment to transact with Varanium Capital Advisors Private Limited
(“Varanium’). For material used in this document, Varanium has relied upon external sources as well as in-house developed information. Reasonable care has been
taken to prepare this document. However, Varanium does not accept any legal liability for accuracy, completeness, and/or usefulness of any information in this
document. All opinion expressed in this document by Varanium constitutes its judgement in relation to the matters that are subject of such material as at the date of
publication, all of which are subject to change without notice. Varanium is not obliged to update this document in any form.

The opinion or expression made by Varanium in this document, should not in any manner, be construed as a solicitation or endorsement of any offer for purchase or
sale of any financial transaction, commodities, products of any financial instrument referred therein.

This material is strictly confidential and privileged to the recipient. No part of this material may be duplicated or copied in whole or in part in any form and or
redistributed without the prior written consent of Varanium. The contents of this document may be subject to change without any prior notice or intimation to the
recipient.
About Varanium Group
Varanium Capital is a global boutique investment advisory firm that
offers asset management solutions to HNIs and institutional clients in
India and abroad through a basket of customized investment
products across a wide spectrum of traditional and alternate asset
classes. Varanium Capital manages ~ USD 1 Billion in Assets Under
Management (“AUM”).

Our products include offshore structured fixed income, portfolio

management services (domestic public listed equities), fintech
focused venture capital fund, venture debt fund and hospitality fund.

About Varanium NexGen Fund

Varanium NexGen Fund is a SEBI registered CAT-1 AIF, focused on
early-stage fintech start-ups based out of India. We are India’s first
fintech-focused Venture Capital fund. We invest across Seed to
Series A stage.