Lately when Bengaluru primarily based fintech startup Setu raised $15 million in a Sequence A funding spherical, it known as for some cheer within the startup ecosystem attempting to come back to phrases with the COVID-19 disaster.
Setu’s Sequence A was led by Falcon Edge and Lightspeed Enterprise Companions US, together with current traders Lightspeed India Companions, and Bharat Inclusion Seed Fund.
In his Medium submit, Co-founder Nikhil Kumar acknowledged that this Sequence A funding will probably be used to proceed strengthening the startup’s staff, roll out a set of recent merchandise, and enhance its know-how infrastructure.
Final April, the startup had raised $3.5 million in a seed spherical, which was led by Lightspeed India Companions with participation from Bharat Inclusion Seed Fund.
On this dialog with YourStory Founder and CEO Shradha Sharma, Setu Co-founder Sahil Kini talks about how this can herald a brand new API fintech play the place sachetisation of banking providers will probably be on supply for any product to plug and play.
Watch the interview right here
Over a billion folks in India want entry to sachetised services and products. Nonetheless, owing to excessive distribution and working prices, present monetary establishments and banks aren’t in a position to ship such services or products.
Setu is fixing this downside by adopting a modular, API-driven, and partner-led distribution strategy powered by a scalable know-how structure.
Based on Sahil, the concept is to make monetary providers easy for anybody who wants it. He says the corporate named the startup ‘Setu’ as it’s a Sanskrit phrase for bridge, and the startup is a bridge between completely different entities to verify the knowledge is flowing. Sahil says,
“We’re an API infrastructure firm. We’re within the enterprise of connecting. API is brief for Utility Programming Interface – which is a elaborate means of claiming it’s a connection between two software program; like a plug and a socket, a request and a response.”
An IIT-Madras alumni, Sahil surmises the evolution of economic providers in India:
“We noticed a giant shift in monetary providers. Earlier, you needed to go to a department to make any transactions. Within the final 10 years, the monetary providers firms have come to your cellphone the place they supply web banking, cellular banking and many others. And the following shift we’re seeing is thru the API financial system the place the consumer gained’t should go to the financial institution’s app however the financial institution/monetary providers is coming to whichever app the consumer is utilizing.”
The startup says that the API gateways at the moment take a very long time as a result of it’s not nearly the usage of know-how, it’s additionally about navigating throughout the monetary providers to achieve the correct particular person. The API improvement is outsourced by banks to outdoors distributors for whom the shoppers are banks, not the financial institution’s prospects.
Sahil says Setu is just not solely a know-how firm, however is cross-functional. Their integration includes regulation, consumer design, monetary product design, and know-how, to supply a seamless integration expertise.
Setu is at the moment a staff of 30 folks and is planning to double its staff measurement in a 12 months’s time. The Bengaluru-based startup can be trying to open an workplace in Mumbai quickly.
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