Payment wallets next big M&A opportunity: VCCircle’s Nita Kapoor

1 month ago

Investments in Indian startups are likely to rise in 2017 from last year while payment wallets will be the next big opportunity for mergers and acquisitions (M&A), said Nita Kapoor, head, India – new ventures, News Corp, at the News Corp VCCircle Startup Summit 2017 in Mumbai on Thursday.

“Wallets will have short lives. Wallets will merge into investments, saving accounts. Somebody will buy wallets. Don’t be surprised if you see wallets merged with banks,” she said, while addressing a gathering of eminent investors, entrepreneurs and investment bankers.

India recorded about 1,005 startup funding deals in 2016, and the number is likely to rise to 1,300-1,500 this year on the back of availability of more capital and strong interest in fintech and healthtech segments. Also, 48 new investments funds have been launched by existing as well as new investors with $2.9 billion in pocket, indicating availability of huge dry powder for investments.

Referring to the government’s decision in November last year to scrap old high-value notes to fight corruption and push India toward a less-cash economy, Kapoor said it was too soon to say if the move was a boon or bane. “It has to be a combination of cashless and cash. We cannot change overnight,” she said.  

Summing up 2016, Kapoor said more than 30 top executives exited their firms and over 7,000 layoffs happened across 18 companies. “We will see a lot more people movement. If you have good talent, look after them,” she said.

Kapoor predicted that M&A will be an interesting space in 2017. “MSMEs and investors are looking at how to get M&As going. Some of these investors are global, they network with each other and they want exits,” she said.

Like this report? Sign up for our daily newsletter to get our top reports.


View Comments
Fin-tech sees sharp funding slowdown, but there's a silver lining: KPMG

Fin-tech sees sharp funding slowdown, but there’s a silver lining: KPMG

Arti Singh 4 weeks ago
Venture capital (VC) investments in India’s fin-tech sector nosedived to a mere $216 million in 2016, a far cry from the previous year’s $1.6 billion,...
France’s Ingenico to acquire PE-backed payments firm TechProcess

France’s Ingenico to acquire PE-backed payments firm TechProcess

Dearton Thomas Hector 2 months ago
French e-payments firm Ingenico Group has agreed to buy Mumbai-based TechProcess Payment Services Ltd, the companies said on Tuesday, as Indian fin-tech companies continue to...
PayU to widen fintech play, bets on cross-border payments, offline business

PayU to widen fintech play, bets on cross-border payments, offline business

Arti Singh 4 weeks ago
Naspers-owned payments gateway PayU India is betting big on the fintech space in India. While its primary focus will be on payments, particularly cross-border payments,...
No Comments

Payment wallets next big M&A opportunity: VCCircle’s Nita Kapoor

Powered by WordPress.com VIP