Payment Revolution in India

TMW has successfully raised an investment as a part of its equity financing round

The Background The Indian Fintech market is expected to reach a total of USD 31 bn by the year 2020. It is currently the third largest fintech ecosystem in the world with an inbound investment of over USD 6 bn in the last 3-4 years. The digital payments segment alone reaches a transaction volume of over USD 65 bn. The fintech adoption rate in India grew at 87% in 2019, compared to the global adoption growth rate of 64%. The awareness stems from a combination of the central government’s decision to decrease the amount of paper currency in circulation through a demonetisation drive in 2016 as well as the shift of traditional banks, insurance providers and wealth managers to digitally accessible and technology-forward services.

The Deal TMW, India’s leading B2B2C fintech solutions provider has successfully raised an investment as a part of its equity financing round from Exponentia Ventures. This investment will enable TMW to execute its contracted B2B2C partnerships, develop its corporate product and technology and establish itself as the go to corporate and personal solutions in India. IEG India Corporate Finance under the leadership of Managing Director Mihir Kapoor has acted as an exclusive financial advisor to TMW.

The Client Founded in 2015, TMW is a financial technology firm providing end payment solutions to its users. It is India’s First “Smart Spend” Account and hybrid banking platform that provides an unique 2 in 1 personal and corporate platform. It has a built in spend analyser & spend manager that functions with integrated loyalty points on every transaction.

The Perspective With the increase in internet penetration in the economy, Indian consumers are constantly demanding high-end technologies - offered on one single platform. TMW solves this by allowing the consumer to make personal as well as corporate transactions through a single application which is linked to the TMW bank account, thereby negating the need for intermediary charges and transfers. TMW adopts a B2B2C approach that focuses on the 42 million+ small and medium enterprises in the country, resulting in a high customer retention rate and low customer acquisition cost. The idea is that the corporate route increases the commitment of the consumer and allows TMW to retain its customer base better than other players that rely exclusively on cashbacks and freebies. IEG – India Managing Director, Mihir Kapoor, underlines this by explaining: “TMW has established itself as a revolutionary model in the B2B2C fintech segment and is well on its way to achieve market leadership”.