Dubai the ‘natural next market’ for India’s B2B fintechs

Two years ago, all of Safexpayu2019s revenues came from its home market of India.
Today, while India, Asiau2019s third-largest economy, still constitutes the bulk u2013 80% u2013 of the Indian B2B fintech firmu2019s business, the other 20% now comes from contracts in the United Arab Emirates (UAE) and wider Gulf region.
Ravi Gupta, founder and CEO of Safexpay, said the company has recorded close to 400% year-on-year growth in its international business since it ventured into Dubai.Source:- TOI
u201cA miscalculation Indian fintechs make about expanding to Dubai is that the population is too small,u201d Gupta said.
u201cBut we look at Dubai as an opportunity because itu2019s a testbed for populations from across the globe. Itu2019s also a misconception the government does not favor non-local players. On the contrary, Dubai welcomes innovation. We can leverage our innovations built in India here with faster adoption and use the city as a springboard to expand fast.u201d
Mumbai-founded Safexpay provides financial institutions with white label payment gateways, neo-banking solutions, QR Code administration software and Payout API.
Safexpay has earmarked about $10 million for regional expansion, Gupta said.
Fintech will be venturing into Saudi Arabia, the Arab region’s largest economy, Qatar, the worldu2019s richest country per capita, and the oil-rich Sultanate of Oman, this year.
Safexpay is also eyeing other regional markets as it establishes its international headquarters in Dubai where it plans to present global launches for new products including payment through facial recognition.
The global fintech sector is predicted to be valued at $305 billion globally by 2025, according to Research and Markets.
Closer to home, a 2022 report by Dubai International Financial Centre (DIFC), a special economic zone and among the fastest-growing financial centers in the Middle East, Africa and South Asia (MEASA), forecasts the regionu2019s industry will double in value from $135.9 billion in 2021 to $266.9 billion in 2027.
Fintech became the fastest growing sector in DIFC last year, and according to a 2023 Mordor Intelligence report more than 20% of the worldu2019s fintech businesses are based in Dubai.
u201cDubai has proven time and again to be the most opportune hub and launchpad for businesses in the Gulf that look to explore the African continent as well to expand out of India,u201d Gaurav Dhar, a board member of the MENA Fintech Association and CEO of Dubai-based Marshal Fintech Partners, said
u201cLooking at demographic, innovation-friendly regulatory frameworks and the diverse nature of global businesses and residents that operate and live in Dubai, fintechs from India will find themselves most at home to test their technology, house employees and grow their talent pool, prior to moving to any other geography in the Gulf or Africa.u201d
Dhar added that Dubai is at the forefront of business setup infrastructure, providing security of both structure and transparency.
The UAEu2019s long-term Golden Visa residency is also a key attraction for founders from emerging economies.
What do you think about this? Comment below