Women are leading Indian FinTech even though globally, women led FinTech firms lack the support given to their male counterparts.
According to a report by Findexable, a London based FinTech think-tank, and Digital Lenders Association of India (DLAI), India ranks third, only after the US and China, in terms of the total revenue generated by FinTech businesses with one or more senior female executives.
International data shows that 1.5% (16) of 1,032 best-funded private FinTech firms globally are founded solely by women and receive just 1% of the total FinTech venture funding. The FinTech Diversity Radar report reveals that women make up 11% of all board members and 19% of company executives in the industry globally.
Clearly, much more needs to be done to bring up the numbers, but for now, India can celebrate.
Lizzie Chapman, Executive Committee member, DLAI said, “DLAI has always supported diversity and equal opportunity, as evidenced by strong female representation on our executive committee. We believe measurement of the current status of diversity in the sector is the first step to taking more conclusive actions.
We are pleased that India is being recognised as a relatively conducive environment for female FinTech founders, far better than Europe for example
“We are pleased that India is being recognised as a relatively conducive environment for female FinTech founders, far better than Europe for example. As a global industry, we still have a long way to go in making the sector truly diverse and equal opportunity sector and DLAI intends to play a key role in enabling that journey. The best products are often built by the most diverse teams.”
The report found that three of the world’s 10 biggest FinTech firms by revenue (with women founders) are in India, i.e. Gurgaon, Hyderabad and Mumbai. Also, India counts in top three countries of FinTech firms with female executives and fourth in companies led by a female CEO.
Leading the success are companies including Spandana Sphoorty Financial, founded in Hyderabad in 1997 by G Padmaja Reddy, and now the most successful sole female-founded FinTech measured by 2020 revenues and total venture funding.
The list also includes Acko General Insurance, co-founded by Ruchi Deepak in 2016 in Mumbai, which reported annual revenues of US$1.95 billion in 2020 and overall venture funding of US$215 million.
ZestMoney, co-founded by Lizzie Chapman and Priya Sharma, with Ashish Anantharaman in Bengaluru in 2015, and now leading in the B2C space with consumer lending services focused on the needs of women.
Recently, INDwealth, co-founded by Amrita Sirohia, Monika Dua, and Pratiksha Dake, with Ashish Kashyap, in Gurgaon in 2018, provides AI driven PFM and wealth management services.
Other upcoming players striving for the top are innovators such as Capital Tech in the SME sector, and SALT – mysaltapp, offering investment products for women.
While the research paints a disappointing picture of FinTech’s performance at building an industry that reflects the real world, this research should be viewed as a line in the sand. From today all of us – from government to regulators, ecosystems, and financial services firms of all sizes – need to ‘dig in’ (not lean in) to make the case and accelerate the progress of women and diverse teams
India also accounts for 13.5% of revenues of FinTech with one or more senior female executives, after only the USA (50%) and China (29%).
Denise Gee, Co-founder of Findexable, says “While the research paints a disappointing picture of FinTech’s performance at building an industry that reflects the real world, this research should be viewed as a line in the sand. From today all of us – from government to regulators, ecosystems, and financial services firms of all sizes – need to ‘dig in’ (not lean in) to make the case and accelerate the progress of women and diverse teams.”