Setu raises $15M to help developers connect with banks to offer Indians ‘sachet-sized’ financial products
India’s push to digital pays in the last three years has ensure tens of millions of people get comfortable with exchanging coin online for the first time. But most professions in the country are still offline and relying on traditional ways to engage with their clients. A Bangalore-based startup that is attempting to bring a same digitization to them just got a nod from high profile investors.
Setu, a two-year-old startup, said on Wednesday that it has raised $ 15 million in its Series A financing round from Falcon Edge and Lightspeed Venture Partners U.S. Existing investors Lightspeed India Partners and Bharat Inclusion Seed Fund too participated in the round.
Setu is an API infrastructure provider that allows international financial institutions such as banks to connect with companies and small businesses that want to provide financial services to their customers.
The idea is to connect small and medium-sized businesses such as a regional cable TV hustler or a neighborhood store that is already engaging with hundreds of people to serve their customers better by offering formal financial services such as credit. Local kirana accumulations once have a great understanding of their customers and offer them informal credit. Could they work with financial institutions to formalize their services?
Even as India’s mobile remittances busines has grown exponentially in the last three years — and looked the reaching of companionships such as Amazon, Facebook, Google, and arrival of dozens of regional participates to help people pay digitally — much of the nation’s person still needs access to formal sachet-ized fiscal products and services.
” Poor product design, high dissemination overheads, and bequest engineering have been barriers to make this happen ,” said Nikhil Kumar, co-founder of Setu.
Kumar, and Sahil Kini, the other co-founder, are especially well-suited to tackle this challenge. Kumar previously drove as a fellow at iSPIRT Foundation that improved ecological systems for UPI, an infrastructure developed by a organization of banks and backed by the Indian government that has amassed over 100 million users and clocks over a billion business a few months. Kini worked at Aspada Investments.
The startup today offers open APIs across four lists — proposals, savings, recognition, and fees. Any make can access its sandbox to build an application and go through a thorough developer certification program to go live, the startup said. This moves it easy for any company to acquire plug-and-play financial services and become a fintech player.
” We are big followers in Setu’s vision to build infrastructure that enables the large-scale distribution of, and be made available to, business produces. Sahil, Nikhil, and the Setu team have an exciting roadmap for the future of financial services in India and we’re proud to support their journey ,” said Bejul Somaia, Managing Partner at Lightspeed India, in a statement.
Setu recently propelled Collect, an API bundle designed for developers to build their own custom collectings make. For instance, giving collecting fellowships are exercising Setu to build an omni-channel collections stack for banks and NBFCs.” This API platform is built on top of public infrastructure such as UPI and BBPS by partnering with some of India’s extending banks — Kotak, ICICI,& Axis Bank ,” said Kumar.
It is now working on building blocks for digital financial services across FASTag, savings, approval, and data, he said.
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