The Way Forward for Fintechs

“WHY BUILD IT, WHEN YOU CAN BUY IT?”

- BY RAJA DEBNATH CHAIRPERSON, CO-FOUNDER & CEO AT VEEFIN GROUP

In the ever-more-competitive race to the top, fintechs in India, like their global counterparts, are increasingly looking at the power boost of acquisitions. The market research firm Tracxn, in a 2024 report, ranked India third globally in terms of funding received in the FinTech segment - and this, despite a decline from the 2023 - a testament to the sector's growing importance as a growth driver.

SURGE OF ACQUISITIONS

1. BUY. GROW. SCALE. Building a product vis-à-vis acquiring a ready-off-the-shelf one sets fintechs on the highway to scaling operations, and its customer base

2. NEW FRONTIERS Acquiring a company that is well-established in a geography/market with boots on the ground, a local network, etc. is yet another route fintechs have been on to break new ground

3. PEOPLE ARE PARAMOUNT Acquiring a company, brings with it the talent that has got it to a place where they were good enough to be acquired - and it's this talent that will help the parent company go places