Sameer Mathur's Journey on Surviving Downturns and Bootstrapping a Fintech Giant
Sameer Mathur left HP, went to MIT, and built ROINet, a ₹350 Cr revenue fintech. Learn his secrets to scaling & leadership!
The Indian startup landscape often celebrates young founders straight out of college. But what about those who take the leap later in life, armed with years of corporate experience? Meet Sameer Mathur, the Managing Director of ROINet Solution, who traded his Country Manager role at Hewlett Packard for the unpredictable world of entrepreneurship, building a fintech powerhouse focused on financial inclusion.
This isn't just another startup story. It's a masterclass in leveraging experience, building resilience, and scaling impact in the heart of Bharat. Sameer recently shared his incredible journey on the Founder Thesis podcast, revealing the numbers, strategies, and hard-won lessons behind ROINet's success.
Check out the video of the conversation here or read on for insights.
The Accidental Entrepreneur: Corporate Life to MIT & a Financial Inclusion Spark 💡
After nearly 15 years in the corporate world, culminating as Country Manager for HP's PC and Printing business in India, Sameer felt the itch for something new around 2009-2010. A plan to move to an HP global role in the US led him to pursue an MBA at the prestigious MIT Sloan School of Management.
However, fate intervened. The HP global role vanished as the new product line faltered. Serendipitously, an academic project at MIT on financial inclusion in developing countries sparked an idea. At the time, a staggering 60-70% of Indians lacked access to basic banking services. The government and RBI were promoting the Business Correspondent (BC) model to bridge this gap.
"It seemed like a good problem to get into... the opportunity also seemed pretty, pretty impressive."
Teaming up with a colleague, and securing an initial investor (after insisting on a fixed salary, a practical need after his MBA expenses ), Sameer co-founded his first venture, FIA Technology Services, in 2011.
FIA: Early Success, Valuable Lessons & a Tough Decision
FIA focused on the BC model, primarily partnering with Public Sector Banks (PSUs).
What is the Business Correspondent Model? 🤔
Banks struggle to justify opening branches in India's 6.5 lakh villages (only 50,000 had branches then).
BCs act as mini-banks, setting up service points (often leveraging existing Kirana stores) at a fraction of the cost.
They earn commissions from banks per transaction (deposits, withdrawals, money transfers).
Kirana partners earn extra income (an average of ₹8,000-₹10,000/month via ROINet, top earners hitting ₹100,000/month ) and gain customer footfall.
FIA achieved operational break-even remarkably quickly, within 8-9 months. However, strategic disagreements on vision, culture, and investment priorities emerged between the partners. In 2014, Sameer made the difficult decision to exit FIA.
ROINet: Rebuilding, Pivoting & Scaling 🚀
Undeterred, Sameer founded ROINet Solutions in May 2015. Leveraging the credibility and relationships built at FIA, ROINet initially operated in the same space but soon pivoted.
Key Strategic Shifts:
Focus on Private Sector Banks: While PSU banks offer brand trust, private banks allowed for much faster scaling due to fewer restrictions on setting up points. Today, only 5,000 of ROINet's 70,000 points are PSU-linked.
Becoming Product-Heavy: Moving beyond basic banking to offer a suite of financial and non-financial products through their network.
Building a Robust Tech Platform: Creating a seamless web and mobile platform connecting partners, banks, and various service providers via a single wallet.
Bootstrapped for the first three years, ROINet faced tough times and working capital constraints.
"It was like walking on broken glass, you know, every day. There were days you weren't even sure you'll see the next week or the next month."
In 2017, a crucial funding round led by a high-profile Singapore-based investor (former DBS CEO, current Chairman of Singapore Stock Exchange) provided the fuel for rapid expansion across India. From just 6,000-7,000 points pre-funding, ROINet scaled dramatically.
The ₹350 Crore Engine: Powering Bharat's Financial Needs 📈
Today, ROINet boasts impressive numbers:
Revenue: Closing the year at ₹350 Crores.
Network: 70,000+ active Business Correspondent points.
Reach: 4 Crore end customers served.
Team: 500+ employees, including a 250-strong field sales force.
Product Mix: Non-payment services (travel, insurance, etc.) contribute 30-35% of revenue and growing.
Network Earnings: Distributes ~75% of bank commissions back to its retail and distribution partners.
ROINet has diversified aggressively beyond basic banking:
Travel: Direct tie-ups with IRCTC and airline aggregators.
Insurance: Eyeing a direct broking license. PayNearby is a strong player here.
Wealth Management: SEBI license acquired for selling mutual funds and securities. Mutual fund penetration in B30 towns (beyond top 30) is growing fast, now accounting for 20-25% of total AUM.
Lending: Partnering with NBFCs for working capital loans to partners and planning its own NBFC for scaling this and offering loans against mutual funds.
Credit Cards: Aggregating cards from all major banks and pioneering Securitized Cards (cards against FDs) to help customers build CIBIL scores.
"(Securitized cards) could have a very solid socioeconomic benefit... How can you grow the country if today 30% of population is still having to go to a money lender at 3% a month or 4% a month?"
Managing this vast network requires robust systems:
Training: Strong engine with regional teams and an LMS delivering content in local languages.
Authorization: Aadhaar-based biometric authentication secures transactions.
Trust: The "power of the social network" on the ground minimizes fraud, alongside company checks. CSPs typically hit peak performance in 9-12 months as local trust builds.
Leadership Lessons from a Seasoned Founder 🧑🏫
Sameer credits ROINet's position among the top 3-4 players in the BC space (despite less funding than some peers) to key principles:
The Core Team is Everything: Spend time getting the initial founding team right. Look for complementary skills (like his co-founder, a solid tech guy ).
Hiring Right (Learning from Mistakes):
Beware of candidates solely focused on money/valuation.
Ensure team members have some financial stability to weather startup storms.
Find people with shared values and a long-term, professional approach (no shortcuts!).
The Power of a Supportive Board: Choose investors who are partners, especially during tough times.
Resilience Through Downturns: Startups will face tough times. Having a committed team willing to make sacrifices and a supportive board is crucial.
The Road Ahead: Opportunity in Bharat Fintech 🇮🇳
While UPI is growing, Sameer believes the assisted model will remain crucial in rural India for years due to factors like digital literacy and access to formal credit.
He sees immense, untapped opportunities for entrepreneurs in the financial inclusion space.
"You look at insurance, you look at lending, you look at the wealth management piece, you look at credit cards, especially for this space, it's all in a very nascent stage. The canvas is pretty large. It's a great space to innovate."
Sameer Mathur's journey with ROINet is a powerful testament that entrepreneurial success can come at any age. It highlights the immense potential in serving Bharat's needs, the importance of building sustainably, and the enduring value of experience, resilience, and strong partnerships.
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