Fund Recs makes a global impact
The recent growth of the fintech sector has placed India second only to the US in terms of fintech funding for the third quarter of 2024. While Q1 2023 still holds the highest funding record at $1.16 billion, Q3 2024 followed closely with $778 million. Such is the growth of the industry that, according to a report by a market intelligence platform, India’s fintech ecosystem continues to solidify its position as a global leader.
This growth is driven by government initiatives such as the Unified Payments Interface (UPI), which processed over 14 billion digital transactions in May 2024 and the JAM Trinity initiative, which integrates Aadhaar, mobile numbers and bank accounts. The allocation of Rs2,600 crore ($309 million) to support fintech start-ups further accelerates the sector’s expansion.
India now ranks fourth in all-time fintech funding, trailing the US, China, and the UK. However, in Q3 2024, India’s ranking jumped to the second place. A major contributor in this regard was DMI Finance, a non-banking finance company, which secured $334 million in September 2024, fuelling the $517 million raised in the alternative lending sector – a 49 per cent increase from Q3 2023 and a 199 per cent rise from Q2 2024.
Close on the heels are international companies looking for entry. Already, Ireland-based fintech company Fund Recs is targeting India as part of its global expansion plans.
Fund Recs specialises in developing and delivering end-to-end solutions to make the data reconciliation and oversight processes seamless, thus helping clients adapt to the constantly changing regulatory environment. With its ISO 27001 and SOC II compliant platform, it ensures the highest levels of data security and transparency across all jurisdictions. The company also stays abreast of compliance requirements by actively engaging with regulatory bodies of Ireland, as well as other jurisdictions.
This includes arranging regular Q&A sessions to keep clients informed of the key regulatory focus areas. Additionally, Fund Recs’ ‘client working group initiative’ has played an important role in fostering co-operation and collaboration that allows clients to share key insights and develop consistent approaches in addressing global regulations such as European Market Infrastructure Regulation (EMIR) and Securities Financing Transactions Regulation (SFTR).
Funds industry
India’s rapidly expanding funds industry presents a great opportunity for Fund Recs. As automation becomes more pivotal to financial processes, the company sees huge potential in helping Indian companies streamline their processes, reduce costs, while meeting all regulatory compliances. “India offers a unique blend of market potential and technical talent,” says Ciaran Walshe, COO, Fund Recs, commenting on the move. “Our aim is to provide financial firms here with cutting-edge tools that not only address regulatory requirements but also drive operational efficiencies”.
Collaboration with local stakeholders, especially regulatory bodies such as SEBI and IFSCA, should be at the core of Fund Recs’s strategy in India. “Strong relationships with Indian clients and regulators are core to that dream,” acknowledges Vickesh Shah, senior sales director, Fund Recs, addressing this issue. “We will continuously be committed to providing automation solutions which make compliance easy while building trust and thereby good long-term relationships”.
The company’s expansion strategy is also supported by Enterprise Ireland, an agency of the Irish government, which has played an integral role in supporting Fund Recs’s entry into the Indian market. From providing market expertise and unique insights to introductions to local market partners, this Enterprise Ireland has played a monumental role in ensuring that Fund Recs is equipped with the resources needed to navigate the Indian market.
Fund Recs’s approach to India also builds off its existing client relationships here, leveraging these connections to establish credibility and further grow their footprint. The company is actively collaborating with local firms to customise solutions that address India-specific challenges. These efforts are strengthened by its ongoing integration of advanced technologies, particularly artificial intelligence (AI), into its core platform.
Fund Recs’s commitment to India reflects its long-term ambition to attain a leading global position in automation and innovative financial solutions. Combining the company’s technological expertise, proactive regulatory engagement, and strategic partnerships, it is well-placed to have a lasting impact on the financial services landscape in India.