The subscription model of selling goods or services is taking off quickly as millenials look for quicker and more convenient ways to shop for their goods online.
Why head down to the shops every month to pick up your razors or food or … just about anything, when you can buy it online without leaving your house. And you can probably get it cheaper as well.
The funding received by fintech startups reflects the trend: Zuora build the APIs for subscription services to condense their payments into one platform. It raised $115 million in Q1 2015 to take total funding to an estimated $250 million since it was founded in 2007.
Providing online financial management has also proved lucrative for Financialforce whose $110 million in funding weighs in at second place on our list. The company offer a comprehensive list of services to make financial management for businesses easier.
More niche services have also raised a large amount of funding, such as Oportun and Freecharge.
Oportun provide loans specifically to the Hispanic community, and Freecharge is taking advantage of India’s burgeoning mobile phone industry – estimated, based on subscribers, to be the second biggest and fastest growing telecoms market in world – by providing a quick and easy top-up service for mobile phone users.
International money movers gained more than $150 million in funding as TransferWise, which received some of its backing from Richard Branson, and WorldRemit which also operates in the space, raised $100m and $58m respectively.
Betterment, which raised $60m in February, is trying to rebrand and simplify financial investment. Whilst previously, the idea of investing your money in a stock portfolio might have seemed intimidating and complex, Betterment is trying to provide a simpler and friendlier service.
The funding received by fintech startups looks to increase as tech engineers improve online financial transactions.