India has the highest FinTech adoption rate globally of 87% which is significantly higher than the global average rate of 64%. The Fintech segment in India has seen an exponential rise in funding over the last few years, investments worth more than $8 bn have already been witnessed across various stages of investment in 2021.
India is amongst the fastest growing Fintech markets in the world and there are 6,636 FinTech startups in India.
Indian FinTech industry’s market size is $50 Bn in 2021 and is estimated at ~$150 Bn by 2025.
India’s payment landscape over the last decade has developed into the most advanced payment system with regards to digital payments by volume (CAGR 50%) and value (CAGR 6%). The Fintech transaction value size is set to grow from $66 Bn in 2019 to $138 Bn in 2023, at a CAGR of 20%.
The Indian Fintech industry ecosystem sees a wide range of subsegments, including Payments, Lending, Wealth Technology (WealthTech), Personal Finance Management, Insurance Technology (InsurTech), Regulation Technology (RegTech), etc.
Indian fintech market has received $29 bn in funding across 2,084 deals to date (January 2017-July 2022), gaining 14% share of the global funding and Ranked #2 on the deal volume
The Fintech sector in India has seen a funding of $8.53 Bn (in 278 deals) in FY22. As of July 2022, India has 23 Fintech companies, which have gained ‘Unicorn Status’ with a valuation of over $1 Bn.
As of July 2022, India’s Unified Payments Interface (UPI) has seen participation of 338 banks and has recorded 5.9 Bn monthly transactions worth over $130 Bn. UPI recorded over 6.28 bn transactions in July 2022, a new record since the service was launched in July 2016.FinTech is expected to be $1 tn in AUM and $200 bn in revenue by 2030; FinTech funding in India recorded a 3X jump in 2021.
While Payments and Alternative Finance segments constituted more than 90% of the sector’s investment flows in 2015, there has been a major shift towards a more equitable distribution of investment across sectors since to include InsurTechs, WealthTechs, etc.
India has 23 Fintechs which have gained ‘Unicorn Status’. 1/5 Startup Unicorns are from Fintech. India recorded the largest absolute number of real-time transactions in the world; India’s real-time transactions crossed 48 Bn, which is 6.5 times of the combined volume of the world’s leading economies: U.S., Canada, U.K., France and Germany in 2021, resulting in cost savings of ~$12.6 Bn for Indian businesses and consumers in 2021
The digital investment market is set to be worth $14.3 bn by 2025, growing from $6.4 bn in 2021 at a 5-year CAGR of 22.4%.