Consumer lending is a $720 Billion Market | Evolution of the Fintech Ecosystem in India | Ep16 The India Opportunity: Akshay Sarma, Axio
Fintech is not dead, it's the biggest opportunity in India. We deep-dive into how to navigate the regulatory environment and how should founders work with the RBI and SEBI.
Hello everyone, welcome to The India Opportunity Podcast where you get a front-row seat to people building India’s future. We talk about unlocking the potential of the country with founders, investors, creators, and successful leaders from different fields to bring you real-life stories and behind-the-scenes of what it takes to be at the forefront of building the India Story.
The 16th episode of The India Opportunity Podcast is out now! You can watch it on Youtube or listen to it on Spotify or Apple Podcasts.
Our guest today is Akshay Sarma, who’s leading Axio as its CFO and has been instrumental in its growth over the last 9 years. Axio is one of the largest fintech companies in India that offers digital loans in the form of pay later, personal credit and money management services through its NBFC. They have raised over $140Mn dollars from some of the best investors including Peak XV, Elevation Capital, and Amazon. Akshay has been with Axio for the last 9 years, where he joined when the company was still called Capital Float. Prior to joining Axio, he spent 7 years on the trading floor at Deutsche Bank. He won the BusinessWorld’s CFO 40 under 40 and has an MBA from Cambridge Business School. I’m excited to deep dive with Akshay into the fintech landscape in the country today, and learn more about his journey of building Axio. We will talk about everything from public markets to regulatory changes in the fintech ecosystem and how they affect founders building in the space. For anyone building or investing in the fintech space, this episode captures a lot of deep insights!
Takeaways
The fintech ecosystem in India offers opportunities in both MSME lending and retail lending.
Setting sustainable growth targets within a company is important, balancing investor expectations with long-term viability.
Banks and NBFCs have been supportive partners in the fintech industry, providing guidance and collaboration.
Company culture and a strong team contribute to the success and evolution of a company.
The pandemic presented challenges, but also opportunities for growth and learning.
The relationship between fintech companies and regulators is evolving, with regulations adapting to the changing landscape.
Fintech companies have the potential to innovate and address inefficiencies in the financial system.
Lending plays can benefit from obtaining an NBFC license, but it depends on the core value proposition of the company.
“Fintech is not dead”, and there are still many opportunities for growth and impact in the industry. Understand the problem you're solving and be clear about your intentions.
Transparency and honesty are crucial to avoid corporate governance issues.
Focus on traditional metrics that align with your business and build a strong foundation before seeking funding.
Angel investing is a high-risk, high-reward venture, and investors should be prepared to lose their investment.
Profitability and cost of funds play a significant role in determining margins in the fintech industry.
Chapters
00:00 Introduction and Journey at Axio
03:58 The Landscape of the Fintech Ecosystem
08:04 Balancing Growth Targets and Investor Expectations
12:27 Partnerships with Banks and NBFCs
16:14 Company Culture and Evolution
21:19 Challenges and Opportunities During the Pandemic
25:07 The Relationship Between Fintech Companies and Regulators
29:07 The Future of Fintech and Innovation
41:12 Understanding the Problem and Intentions in Fintech
46:47 Transparency and Avoiding Corporate Governance Issues
53:07 The Frenzy Around SME IPOs and Risk Appetite
59:08 The High-Risk, High-Reward Nature of Angel Investing
01:07:53 Building a Strong Foundation Before Seeking Funding
01:14:02 The Importance of Profitability and Cost of Funds in Determining Margins
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Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered financial advice. Viewers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.