Delhi-based fintech startup BankSathi Technologies has raised $200,000 in a seed funding round from a group of angel investors including Dinesh Godara (founder, TREAD, ex-Unacademy), Rajendra Lora (founder, Freshokartz), Anuj Ahuja and Aditya Talwar (founders, Studybase), and others.
The startup aims at promoting the role of financial advisors in right and impeccable decision making while buying retail loans, credit card and insurance products, through its advisors’ app.
The funding l be utilised on product development, team building, and executing marketing and growth plan.
“We currently have 5000+ advisors across 700 pincodes of India; with a total advisor income of Rs 75 Lakh earned till now. Currently, we have 45 products from 15 financial institutes in our bucket to sell. We are targeting one million advisors, and 150 products of 50+ FIs ready to distribute through BankSathi App by the end of this financial year,” the startup said in a statement.
“In the next three years, the plan is to create five million advisors; and 500 products of 100 FIs available on our platform. We would be raising another round of investment by the middle of this year to achieve our set goals,” the statement added.
BankSathi is focusing majorly on Tier-II and beyond cities as customers are more likely to go for advice in these cities.
Co-founder Jitendra Dhaka said that even after 74 years of independence, thousands of financial institutions, millions of FI branches, India still has a penetration of four percent insurance.
“Most of the Indians believe in taking advice from experts around them, this is the reason 75 percent of retail financial products are sold in India through authorised advisors/agents. India has two million active advisors in the insurance industry and 50 percent of retail assets in India are sold through DSA and connectors, which are again in millions,” Jitendra added.
According to the Co-founder Sandeep Choudhary, “COVID-19 and the lockdown has brought the technology at least five years ahead, and buying behaviour of customers has also changed a lot. This secular shift is going to help BankSathi a lot.”