CA Manish Mishra explores the Savings Technology landscape in India

The Emerging Landscape of Savings Technology in India

In recent years, the Indian financial landscape has witnessed a significant shift towards savings technology, as investors increasingly turn their attention to startups in the savings segment. This article explores the evolving business models in the savings technology sector, the types of savings technologies emerging, regulatory requirements, and offers a SWOT analysis of this burgeoning industry. Additionally, we provide a detailed list of the top 10 investments in the Banking, Financial Services, and Insurance (BFSI) sector in India.

The Business Model of Savings Technology

Savings technology, often referred to as “Savings Tech,” focuses on leveraging innovative digital solutions to provide better savings and investment opportunities to a wide range of consumers. The key aspects of the business model in this sector include:

  1. Access to Investment Portfolios: savings technology startups aim to bridge the gap between Indians’ propensity to save and their limited exposure to investment portfolios. They offer accessible investment options to individuals at various income levels.
  2. Technology-Enabled Financial Planning: These startups utilize technology to provide users with data-driven financial planning and advice. This approach ensures that individuals can make informed decisions about their savings and investments.
  3. Diverse Portfolio Options: savings technology companies emphasize the importance of diversified portfolios to balance risk and returns. They offer a range of investment options tailored to customers’ risk appetites and profiles.
  4. Innovation in Investment Products: Startups in this sector often introduce innovative investment products that capture market segments not adequately served by traditional financial institutions. Examples include gold-linked products, micro-savings platforms, and fractional ownership.

Types of Savings Technologies

savings technology encompasses various subsectors, each addressing specific aspects of savings and investments:

  1. Digital Gold Investments: Startups like Augmont, Jar, milliGOLD, and IndiaGold offer digital gold investment options, allowing users to invest in the precious metal conveniently and digitally.
  2. Micro-Savings Platforms: Platforms like Siply enable underserved populations to inculcate savings behavior with minimal investments, sometimes as low as ₹1.
  3. Theme-Based Investment Portfolios: Companies like Smallcase enable investments in portfolios of stocks or exchange-traded funds (ETFs) that track specific themes, strategies, or objectives.
  4. Debt Instruments: Startups like Wint Wealth facilitate retail investors’ access to debt instruments (bonds) with low minimum investment requirements, bridging the gap between low-risk and high-risk investment options.
  5. Round-Up Investing: Apps like Jar and Deciml offer spare change/round-up investing, where users can invest accumulated amounts in mutual funds, US stocks, or digital gold.
  6. Save Now, Buy Later (SNBL): SNBL startups incentivize saving for significant expenses without the risk of accumulating debt associated with “Buy Now, Pay Later” models.

Regulatory Requirements

For savings technology startups to succeed and gain the trust of investors, they must adhere to regulatory requirements. Key considerations include:

  1. Compliance with Financial Regulations: Startups must comply with existing financial regulations to ensure the safety and security of investors’ funds.
  2. Regulator Confidence: Gaining the confidence of financial regulators is crucial. Demonstrating a commitment to regulatory compliance and investor protection is vital for long-term success.
  3. Transparency: Startups should prioritize transparency in their operations, investment products, and fee structures to build trust with customers.
  4. Data Security: With the handling of sensitive financial information, data security is paramount. Implementing robust security measures is essential.

SWOT Analysis of Savings Technology


  1. Growing Market: India’s savings technology market is expanding rapidly, with increasing investor interest and demand for innovative savings solutions.
  2. Diverse Investment Products: savings technology startups offer a wide range of investment products, catering to various customer preferences and risk profiles.
  3. Financial Inclusion: Micro-savings platforms and low-cost investment options are promoting financial inclusion by reaching underserved populations.


  1. Regulatory Challenges: Navigating complex financial regulations and gaining regulatory approval can be challenging and time-consuming.
  2. Trust Building: Establishing trust among investors, especially in a competitive market, is a significant hurdle for new startups.


  1. Untapped Market: The penetration of savings and investment products in India is relatively low, leaving ample room for growth and innovation.
  2. Innovation: Startups have the opportunity to introduce unique and tailored investment products that cater to specific investment goals and demographics.


  1. Competition: As the savings technology sector gains traction, competition among startups and established financial institutions may intensify.
  2. Regulatory Changes: Changes in financial regulations could impact the operating environment and product offerings of savings technology startups.

Top 10 Investments in BFSI Companies

Here is a list of the top 10 investments in the BFSI sector in India, showcasing the growing interest of investors in financial services and technology:

  1. Poonawalla Housing Finance: TPG Capital invested $472 million (₹3,900 crore) in December 2022.
  2. Hinduja Leyland Finance: Elara Capital and others invested $111 million (₹910 crore) in October 2022.
  3. KFin Tech Investor Services: IIFL VC, ICICI Prudential, and others invested $85 million (₹675 crore) in December 2022.
  4. Lentra AI: Citi Ventures, Susquehanna International Group, and Bessemer invested $60 million (₹489 crore) in November 2022.
  5. NeoGrowth: FMO and others invested $36 million (₹300 crore) in December 2022.
  6. KreditBee: MUFG Innovation Partners, Mirae Asset Global Investments, and others invested $20 million (₹162 crore) in December 2022.
  7. Zype Credit Management App: Xponentia Capital and others invested $18 million (₹148 crore) in December 2022.
  8. Pillow Crypto Platform: Jump Capital, Quona Capital, and others invested $18 million (₹148 crore) in October 2022.
  9. Juno Neo Bank: ParaFi Capital and others invested $18 million (₹148 crore) in October 2022.
  10. Drivetrain: VH Capital, Jungle Ventures, and others invested $15 million (₹125 crore) in October 2022.

savings technology is rapidly reshaping the Indian financial landscape, offering diverse investment opportunities, fostering financial inclusion, and catering to the evolving needs of investors. While startups in this sector face regulatory challenges and the need to build trust, the opportunities for growth and innovation are substantial. With increasing investments in BFSI and fintech companies, India’s savings technology industry is poised for significant growth in the coming years, contributing to the nation’s evolving financial ecosystem.

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