Indian fintech companies are raising funds to launch super apps targeting niche areas

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In recent years, the Indian fintech industry evolved significantly. With technological advancement spread across all fintech verticals, start-ups are raising funds to target niche areas to increase their market share. Moreover, as the usage of mobile wallets for day-to-day transactions increased significantly in the last six to eight quarters, start-ups are raising funds to launch their products and services in this segment. Notably, with increasing mobile penetration, it is expected that the trend of launching super apps for niche areas will grow over the next four to six quarters in India.

In February 2022, Indian fintech firm RapiPay raised US$15 million in funds in a pre-Series A round for launching its super app, NYE. With this super app, the company forays into the business-to-consumer (B2C) segment. The new app will help consumers to manage multiple bank accounts as well as transactions through a single login.

Initially, the company entered the market with B2B products, including banking services such as cash withdrawal and deposits, micro-ATMs, point-of-sale devices, insurance, and utility payments for rural merchants. However, with this super app, the fintech's retail network of six million merchants will be benefitted from operating bank accounts accepting payments to offer 'Buy Now, Pay Later' solutions.

Similarly, in January 2022, NuCash, a digital fintech start-up, had announced the launch of a financial super app for students. The company plans to invest around US$2 million to offer banking solutions for the students. With around 40 million students facing problems with savings, investments, and accessing loans, the start-up is targeting to capture these demographics through the super app.

Notably, the super app features zero-balance for accounts, one-tap access for financial assistance together with customer care support for digital and mobile-first customers. Moreover, the super app will make the complex financial offerings easier for these students and help them to be financially independent. With these unique offerings, the company is likely to capture a significant market share in the country from a medium to long-term perspective.

To know more and gain a deeper understanding of the prepaid card market in India, click here.