Fintech infrastructure is crucial for creating seamless financial experiences. After completing studies at Berkeley, a career began in enterprise integration, focusing on connecting complex systems like ERP and supply chain platforms, enhancing user experiences. This early exposure highlighted the significance and often unnoticed beauty of infrastructure. The end user may not see it, but their experience heavily relies on what supports it.
As fintech investments progressed with Better Capital, the notion of an independent infrastructure layer essential for enabling user experiences became evident. For India to foster a new wave of financial services aimed at hundreds of millions of smartphone users, the complexities underneath had to be addressed. This involved understanding how fintechs interact with banks, product management, compliance with regulations, the movement of money, and the reliability of these interconnected systems.
This understanding led to a focus on fintech infrastructure investing. A critical question emerged: what foundational infrastructure is essential for the emergence of new financial experiences? From neobanking and cutting-edge credit cards to app-based lending and wealth management, there is invariably an intricate infrastructure layer that facilitates these products.
The investment strategy based on this thesis has proven effective. M2P, an early investment, has become a significant player in the Indian fintech scene, powering many of the leading financial experiences while also expanding into various international markets. Similarly, Upswing is developing the underlying structure for some of the rapidly growing investment and wealth management fintechs, allowing features like fixed deposits and bonds to be conveniently integrated into consumer platforms.
Hyperface has also achieved impressive feats in card infrastructure, enabling brands and financial institutions to create and manage fully integrated credit card solutions more easily than before. These examples reflect just a portion of the diverse investments made in the financial infrastructure space over the years.
The past six to seven years have confirmed a vital insight: many of the most impactful companies in financial services function one layer beneath the consumer experience. The complexity and regulatory demands of certain products magnify the value of such infrastructure. Remarkably, infrastructure designed to meet the challenges of India’s market is increasingly adaptable for use globally.
What remains particularly exciting is the potential for this thesis to evolve; as financial services grow more digital, integrated, personalised, and reliant on software and AI, the significance of the underlying infrastructure will continue to rise. Emerging consumer experiences will demand innovative infrastructure solutions, which will enable previously unimagined financial experiences.
Over recent years, the seeds of this evolution have been sown in India. There is strong potential for the development of substantial financial infrastructure companies, many of which are likely to extend their impact beyond India’s borders.
This article is part of a five-part series by Vaibhav Domkundwar, examining the vital fintech infrastructure layer that supports contemporary financial experiences. Investments in M2P, Upswing, and Hyperface underscore the thesis that substantial opportunities frequently lie beneath the immediate consumer-facing offerings. The series will delve into further microtrends and lessons in the upcoming articles.