Updated: December 13, 2021 7:49:34 pm
The word FinTech, which combines Finance and Technology, is used to describe a new mechanism that seeks to improve and automate financial services. It is effectively transforming customer-oriented technologies that are disrupting traditional financial services.
Razorpay recently hosted 4th edition of it’s annual flagship event, FTX, which is regarded as India’s most awaited FinTech event. It provides the world’s FinTech Executives a platform to come together and discuss their strategies & vision to shape the future of digital finance.
With a focus on creating actionable inspiration and real-world partnerships, the conference agenda included several stages of talks by global industry leaders, masterclass sessions, hackathon – all centered around a fully catered networking area.
About the session
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The CEO & Co-Founder of Razorpay, Harshil Mathur hosted one of the most lively sessions of the event, “Future Of FinTech IPOs”, with keynote speakers – Nithin Kamath (Founder & CEO, Zerodha) and Yashish Dahiya (Chairman & CEO, PB FinTech).
In the session, Harshil discussed how IPOs have been received by the Indian markets in the past few years, and the increased demand & perception of investors. Nithin added that the old school circuit in the stock market has missed out on the start-up market.
The discussion focused on establishing a strong customer relation, saving time and inspiring entrepreneurs. The speakers and the attendees had the vision of helping the budding businesses to grow and understand the hoops of the market.
In the second section, Yashish talked about how the private equity investors want the companies to invest in going public. “It is good for the entire industry if an insurance provider goes public. It brings credibility to the whole sector. If you are going public, in some ways you have to be able to guide people and PB FinTech has done that quite well.”, he added.
The conversation concluded that the most important aspect in the business is predictability before going to the markets.
“Till you have predictability in the business and you have a commitment to your investors to go public, timing does not matter. IPOs during bullish markets is preferable. However, it is difficult to go public in a bearish market because people are not willing to buy because the decision to buy keeps getting postponed. So no business can bet on the right time.” Nithin concluded.
New Age Companies
In the next segment, the speakers talked about how companies like Zomato have changed the image of new age companies. They exchanged views on Zomato being the first non-pedigree non profit making company going public.
The discussion covered how a public company have a lot more diligence to follow than a private company, how profitability gets talked about, and how going public can be a wrong decision.
Yashish concluded that one way to cope with the stress of being the founder of a public company is to understand that we can’t give profit to people all the time. Sometimes prices may drop, sometimes they will rise, we can control only so much.
The attendees got a deliberated reasoning and a checklist of risks tangled with going public.
“If you go down to zero as a public company, then there is no coming back. What we are striving for as a business goal is to empower people to invest and make it easier for them. The core team is really excited to solve that problem, which is a complicated problem.” added Nithin.
Blockchain & AI
As the most influential commodities are data and knowledge, technology is required to make them more manageable through science. Similarly in the FinTech sector, AI and BlockChain are bringing innovations and enabling the users to have a better usage of financial data. To this, Nithin added. “If there is one potential disruptor for regulated businesses in trading then it is crypto because it can function in unregulated space and money tends to flow towards that”.
Predictability is key
Fintech as a sector is at an inflection point with industry synergies rewriting the nuances of financial services backed by technology. This has translated well into fintech startups gunning for listing. With the growing attraction of customers towards a piece of the IPO pie, it is imperative for founders to know the various objectives before taking the leap. Affinity towards startup driven IPOs is on the rise is consensus that the session came to even as the Indian market continues to be volatile. Handling the pressure of volatility while having the option to not depend on single investors to raise capital is the choice that founders need to make when launching their company. The power packed session came to an end with the speakers debating on how to handle the pressure of going public, to which Yashish concluded by repeating the motto he ran his company on – by keeping customer centricity as core and running a business that can be predictable to elicit trust.
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