At $29 bn, Indian fintech sector now has 14% global funding share: Report
According to a new analysis, the Indian fintech market has attracted US$ 29 billion in funding across 2,084 agreements to date (January 2017-July 2022), accounting for 14% of worldwide funding and ranking second in terms of deal volume.
According to the 'State of the Fintech Union 2022' report by the Boston Consulting Group (BCG) and Matrix Partners India, India's CAGR in the fintech industry was 20%, which was greater than the US, the UK, and China, which saw CAGRs of 16%, 15%, and 10%, respectively. With 7,460 fintech companies, India has surpassed the United States (22,290 fintech companies) and China (8,870).
According to the report, the India fintech ecosystem has 23 unicorns (out of a total of 106) and has grown to the point where it can build a strong position in the global financial services market and be benchmarked for its speed of innovation, consumer inclusion, and development. Fintech’s have made a significant contribution to the Indian economy, with over US$ 800 billion in annual payments transaction value, and play a significant part in the supply of full-fledged financial services to all Indians. It stated that India’s digital payment mission is vital for the US$ 5 trillion Indian economy. The volume of digital investment in the country increased by 100% from 4.5 million in 2021 to 9 million in 2022.
At the same time, the volume of neo-banking increased from 2.5 million to 4 million, representing a 60% increase in just one year, according to the report.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.