According to Statista, India has ranked 3rd in the world in terms of the number of FinTech unicorns in 2023. While the US and the UK hold the top two positions, India is said to be securing its place as a key player in the FinTech landscape.
India is said to have close to 20 FinTech unicorns. These include established entities, like Paytm, Zerodha and Billdesk. According to Tracxn, India’s FinTech sector is said to have faced close to a 70% decline in investments in H1 2023. While the sector raised about $4.3 billion in the H1 2022, 2023 saw about $1.4 billion in investments in its first half in India. The decline is said to be primarily attributed to a downturn in early-stage investments, which plummeted by about 80%, compared to the same period in 2022.
Payment platforms, alternative lending and internet-first insurance companies were said to be amongst the top-performing segments in India’s FinTech industry. Bengaluru is said to have emerged as the leading hub for FinTech startups in India. It is said to have raised about $950 million, surpassing places like Mumbai and Jaipur by a significant margin.
Bengaluru was said to have accounted for close to 70% of the total funds raised in the FinTech sector during H1 2023. And what’s the future? India’s FinTech ecosystem may be poised for substantial growth and is expected to generate about $70 billion in annual revenue by FY30. With over 9000 FinTech companies, India is said to have captured close to 15% of Indian startup funding. FinTech companies are said to account for 70% of digital payment transactions.
FinTechs are said to own about 50% of the active broking accounts on the National Stock Exchange. That being said, while FinTechs are capturing a sizable market share, they may face challenges in achieving sustainable profitability, adhering to regulatory standards & ensuring risk and security compliance.