7 Emerging Startups in Fintech Space

Fintech is one of the most exciting sectors of the innovation economy. We are seeing a financial revolution as a result of tremendous technological advancements and the pandemic’s drive for more cashless transactions. It is no surprise that

• Out of 907 unicorns, 187 unicorns are in fintech space (20%)
• 6 out of 12 most valued startups are in the fintech space
• Stripe is the 3rd most valuable startup in the world

Source: CB Insights

In 2021 (till date), 3,829 companies raised more than $105.8 billion in funding, compared to $44 billion raised by 2,959 companies in 2020. Furthermore, the median deal size is $5 million with a median post-money valuation of $50 million (Deal size in 2020 was $3.10 million with a median post-money valuation of $21.18 million). Check out deal counts and capital-raised statistics over the last 10 years.

Some of the top companies in the fintech space are:

Source: Pitchbook

Since fintech is such a vast field, it is impossible to cover everything in a single article. I’ll be concentrating on several developing fintech areas that are transforming the financial sectors:

1. BNPL (Buy Now Pay Later)?— Customers pay by installments over time (Estimated market size?- $20.40 billion by 2028)
2. Digital Remittance-Remit money from one country to another seamlessly (Estimated market size?— $42 billion by 2028)
3. B2B payment-The global B2B payment market is?$38 trillion opportunities. The share of cheque payment is reduced to 42 percent.
4. Credit Score-Alternative Credit Scoring is growing rapidly as technology enables the inclusion of subprime consumers

Today, I would like to share some emerging startups in the fintech space on the above-mentioned sub-themes.

1. Plentina (www.plentina.com)

Plentina, founded in 2019, enables consumer lending (BNPL) in emerging economies based on prior retail purchase history and mobile behavioral data. The company launched its product in the Philippines (population of 108 million with 2% credit card penetration) and is gearing up for the next launch in Vietnam. Plentina has raised?$5.7 million?in seed funding so far, including $2.2 million in November 2021.

Read the full article: 7 Emerging Startups in Fintech Space