Bengaluru based Fintech startup Gumption Labs has won first rank for a 3 months program for Fintech ventures conducted by Village Capital in collaboration with PayPal and BlackRock and thereby received USD 50,000 in confirmed investment from Village Capital. The program ended yesterday. Gumption Labs is India’s first artificial intelligence (AI) based algorithmic platform that automates the investments options.
“We are going to use the funds from Village Capital to expand our team and operation to handle the increasing number of users of our platform”, said Anuraag Saboo, co-founder & CEO, Gumption Labs. Anuraag is a first rank holder from IIT Chennai & IIM Bangalore alumnus.
Started in 2010, Gumption Labs monitors and re-balances financial investments using artificial algorithms through — Traders Cockpit and Fund Expert – two of its signature products. This is the third big recognition for the startup which is growing by leaps and bounds.
In October 2016, it was selected by Barclays Mumbai Rise accelerator programme focussed on Fintech startups. It was among top 8 finalist at Thomson Reuters Fintech Innovation Challenge in November and was selected among hundreds of Fintech startups across India.
Fintech has exploded in India in the last two years,- the sector is projected to grow at 22 %, with USD $1.25 billion invested in Indian fintech startups in 2015 alone. In parallel, the Government of India has prioritized financial inclusion through initiatives such as Aadhaar, small finance banks, payment banks, and pension, savings and bank account schemes for the unorganized workforce, children, and the unbanked.
As a result, bank account penetration in India now stands at 53%, up from 35% in 2012.Yet almost 60% of these accounts show negligible or no transactions and only 7 – 8% of small businesses in the country have access to credit, either institutional or non-institutional.
Significant gaps remain in the following:
• Distribution of services to underserved demographics and areas;
• Effective credit mechanisms and financial protection for SMBs and the agricultural sector;
• Streamlined processes for government and private sector payments;
• Social security and wealth creation mechanisms for low-wealth communities.
Village Capital, in collaboration with PayPal and BlackRock, and with local support from the DBS Foundation, hosted a 3-month business training program for early-stage Fintech ventures from across India that are addressing these challenges. The program supported selected entrepreneurs through an award-winning program curriculum, 1:1 mentorship from sector leaders, and tailored engagement with potential strategic partners and investors. The program was 12 days of in-person work, taking place across three workshops spanning the course of three months.
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