Fintech
Fintech Farm raises $32 million for business expansion in India
Based in the UK Fintech farma startup that provides technology to mid-sized banks in developing markets to build digital tools, has raised $32 million in Series B funding.
The capital comes from an initial Series B round, led by London-based venture capital firm Nordstar, and a Series B extension round led by London Stock Exchange-listed Bank of Georgia. The company previously raised a $7.4 million round in 2022 led by Flyer One Ventures and Solid with participation from TA Ventures, Jiji, u.ventures and AVentures Capital.
Building banks for emerging markets
Fintech Farm, launched in 2020, works with mid-sized banks in emerging markets that are looking to build neobank apps but lack digital know-how. The startup differentiates itself from other Banking-as-a-Service (BaaS) operators, as it focuses on providing operational support rather than regulatory or infrastructure services.
Startup officials said they have technology they call “a neobank in a box,” which covers everything needed to build a large, profitable digital bank. The main features it offers users are reminiscent of many of those offered by neobanks in Europe: debit and credit cards, Buy Now, Pay Later, equity investments; the standard products you would expect from a retail bank.
Fintech Farm has so far launched in Azerbaijan, where it has partnered with a local bank to create an app-based offering for more than 1 million users, it says. In Vietnam, you partnered with the country’s Orient Commercial Joint Stock Bank to create Liobank. Fintech Farm is compensated by the banks it collaborates with based on the performance linked to the number of customers and the revenues they generate for their customers.
The company is currently directing its efforts towards developing a fintech solution in India, with the aim of improving consumers’ access to credit. Highlighting the significant adoption of India’s digital payment system, Unified Payments Interface, the startup finds it more feasible to partner with local banks in providing lending services.