During his first visit to Maharashtra after the recent Lok Sabha election, Prime Minister Narendra Modi laid the foundation for projects worth Rs 29,396 crore. He announced his vision to make Mumbai the world’s capital in financial technology and Maharashtra a leading state in tourism.
While this announcement spurred public enthusiasm, stakeholders in the fintech ecosystem have a lot to say. Many are drawing comparisons between Bengaluru, known as India’s Silicon Valley and start-up hub, and Mumbai, already the financial capital of India.
Vishal Sharma, co-founder and CEO of AdvaRisk, a fintech start-up backed by ICICI and NABARD and based in Pune, acknowledges that Mumbai is undeniably India’s financial capital and to some extent, its fintech capital as well. He believes that PM Modi’s ambition to make the city the fintech capital of the world could significantly boost fintech start-ups but also comes with its own set of challenges.
Raja Debnath, Managing Director of Veefin Solutions Ltd, an SME listed company based in Mumbai, says that the goal of establishing Mumbai as the global fintech capital is exactly the boost the sector needed.
“With regulatory bodies and financial markets based in Mumbai, building a robust fintech ecosystem is a natural progression. The launch of multiple investment projects for the city will give Mumbai a head start in attracting both established businesses and start-ups within the fintech sector,” he adds.
According to Invest India, the country is amongst the fastest growing fintech markets in the world with a market size of $584 billion in 2022 and estimated to be at $1.5 trillion by 2025 and Mumbai claiming to be at top in the sector. Now while the city holds so much prominence, fintech founders say a “robust infrastructure” lacks.
Mohit Bedi, co-founder and Chief Business Officer of Bengaluru-based Kiwi, a fintech company headquartered in Bangalore which has recently opened office in Mumbai highlights that fintechs need to interact with the RBI, NPCI, banks, and aggregators in Mumbai. However, office space and tech workforce are pricier in Mumbai than Bengaluru. A workstation in Bengaluru with the likes of WeWork would cost around Rs 8,000-10,000 monthly, while in Mumbai’s BKC, it costs Rs 30,000-35,000. Additionally, tech professionals prefer Bengaluru due to its local tech giants and multinational facilities. “To meet the technological demands of the fintech sector and create a confident investment environment, Mumbai must develop robust infrastructure. Beyond these projects, establishing a concrete digital infrastructure, modernising the power grid, and developing robust data centres, coupled with nurturing a culture of innovation, can solidify Mumbai’s position as a premier fintech hub globally.”
Incentivising investments and promoting Mumbai as a talent hub will draw resources, says Raj N, Founder of Zaggle, a B2B SaaS fintech listed player further adding that partnerships and innovation programs will drive collaboration.
There are several challenges, highlights Yashoraj Tyagi, CEO of CASHe, a Mumbai based, AI-driven financial wellness platform as he mentions dealing with complex regulations, attracting top tech and finance talent, ensuring strong digital and physical infrastructure, securing start-up investments, and managing cybersecurity threats are key for development.
If the key challenges are solved, ecosystem stakeholders believe that Mumbai has potential to become a leading fintech hub within 5-10 years.
