500 FinTech 500 Kulfi 500 Startups India

500 Startups launches two new funds

On Tuesday, 500 Startups announced the formation of two new funds: 500 FinTech – a vertical fund focused on the financial industry – and 500 Kulfi – a fund focused on early-stage investments on the Indian subcontinent. Each fund will control around $25M. These funds join the 3 main funds and 8 microfunds controlled by 500 Startups, which manage around $200M.

500-bills 500 Startups launches two new funds

According to the announcement, the launch of 500 FinTech is the result of 6 years of investments in the industry. After these 6 years of involvement, 500 Startups will be looking to invest in companies that provide: “Financial Services For the Rest of Us.”1 These investments will be driven by a few key trends and developments:

  • Financial Institutions are still not serving millennials, minorities, women, and emerging markets effectively
  • Technology (especially smartphones) will slash the cost of delivering financial services to billions of underserved consumers and businesses
  • Traditional financial institutions are not innovating fast enough to meet changing customer demands2

500 FinTech is a natural extension of the new FinTech accelerator program, which will host around 20 companies a year. 500 FInTech will be managed by 500 Partner Sheel Mohno (pictured above).

Pankaj-Jain 500 Startups launches two new funds

While 500 FinTech, as the name implies, is 100% focused on the financial industry, 500 Kulfi will be sector agnostic. That said, according to the announcement of the fund, 500 Kulfi will pay close attention to “FinTech, EdTech, Health & Wellness, Data Analytics, Content and SaaS/SMB,” startups. 3 Again, this is really a natural extension of 500 Startups activities. Since 2011, the firm has invested in over 50 companies in India. 500 Kulfi will be managed by 500 partner, Pankaj Jain (pictured above).

  1. Sheel Mohnot, 500 Startups announcements, “500 Startups Announces $25M FinTech Fund,” 23 February 2016  
  2. Ibid  
  3. Pankaj Jain, 500 Startups announcements, “500 Startups Announces 500 Kulfi: $25M India Fund,” 23 February 2016