Unlisted private internet companies in India have raised over $2 billion in the first quarter of 2017. Out of this over $100 million has been raised by fintech companies alone. There has been a sharp rise in investment attracted by startups compared to the $2.7 billion, which they raised in the year 2016. Majority of this amount was raised y Flipkart and Ola who took steep cuts in their valuations. Snapdeal is also on track to raise another round of funding which can easily push this figure to over $2.5 to $3 billion.
The fintech companies which raised funding were – Freecharge, Ccavenues, Truebalance and Credit Mantri. The Govt’s step to demonetize old notes of Rs 500 and Rs 1,000 proved to be a blessing for many fintech companies which provide payment solutions. This move has pushed crores of new customers towards these fintech companies, which eventually increased their revenue. To handle the high number of transactions and customers, more employees were hired by these fintech companies. Not only these fintech companies, even other companies like PayTM Mall, Shopclues, Amazon that are online first too saw an uptick in business and stepped up their hiring. Internet companies had to hire much in advance to what they had anticipated and hence the flurry of funding rounds that happened in the first quarter.
Prime Minister Narendra Modi’s various policies are creating lot of employment for various startups and with a focus on a digital and a cashless economy, many young graduates and post graduates trained in this field are benefitting and shall continue to benefit.