FinTech in India
India's FinTech sector is growing like crazy. According to a report by the Boston Consulting Group, the sector is currently worth about $50-60 billion and will continue to grow to a valuation of $150-160 billion by 2025. That's a tripling in just five years. The growth of India's FinTech industry is not going unnoticed abroad either. India received over $30 billion in funding in 2,084 FinTech projects over the past five years. This makes it grab a 14% share of global FinTech investments. India's FinTech sector received $8.5 billion in funding in FY22.
Driving the explosive growth of the sector are the numerous Indian start-ups offering innovative technologies to make things like banking, lending, insurance and investing easier, more insightful and accessible. In addition, the incorporation of making online payments has gained momentum with the demonetization measure of 2016 and stringent lockdowns in 2020, which has given an additional boost to the FinTech sector.
Market Statistics
India is one of the fastest growing FinTech markets in the world. Of the more than 2,100 FinTechs that currently exist in India, more than 67 percent were founded in the past 5 years.
The number of online payments has doubled in the past 3 years, from 45 billion transactions in 2019-20 to 92 billion in 2022-23.
The value of all FinTech transactions will grow from $66 billion in 2019 to $322 billion in 2027.
The percentage of Indians with bank accounts has doubled in the past decade, with over 80 percent of India's population having accounts in 2019.
India has the highest adoption rate of FinTech products in the world, as high as 87 percent.
Growth indicators for India's FinTech sector
India has the world's second-largest FinTech sector.
The ecosystem of the Indian FinTech industry already has a wide range of sub-segments, such as payments, loans and insurance, but is rapidly expanding to include things like wealth technology.
India has one of the largest talent pools of highly skilled, technical personnel in the world.
Indian society is digitizing very quickly. By 2022, India had 830 million smartphone users, 40 percent more than in 2020.
The high volume of financing in the sector, from home and abroad, creates room for innovation in the sector.
The Indian government has many ongoing initiatives that encourage the growth of the sector, such as Start-up India and India Stack.
Key players in the FinTech industry in India
National FinTech players in India
Paytm
Billdesk
Cashfree
CoinDCX
Money Tap
Niyo
Yap
International FinTech players in India
Wolters Kluwer
Western Union
AsiaPay
Rush Gold
Volopay
Paypal
Alibaba
Interesting investment opportunities
WealthTech: Online investment advisory service and help with managing finances.
Payments: online payment options such as PayTM.
Lending: Technology and digital solutions to facilitate loan search, application and repayment.
InsureTech: Technological innovations to improve the efficiency of the insurance industry.
SaasTech: Specific SaaS solutions for the FinTech sector.
Do you have a specific question about opportunities for your company in the Indian FinTech market?