With 7,460 fintech companies, India is now third behind the US (22,290 fintech companies) and China (8,870).
The Indian fintech ecosystem has 23 unicorns (out of 106 in total) and has reached a scale to gain a strong foothold in the global financial services market and to be benchmarked for its speed of innovation, customer inclusion and growth. the report.
“With an annual payment transaction value of more than $800 billion,
Many large fintechs have been active since 2008, with Neobanks as recent entrants.
While the number of fintechs scaled up between 2014 and 2021, funding was low until 2015, after which the sector received a rapid funding boost.
Covid has further expanded the payment space, leading to a 210 percent spike in funding between CY 2020 and 2021.
“With rising funding and valuations, we have seen an acceleration in the speed at which fintechs have become unicorns versus the past,” the report said.
The report said that “we have five years ahead of us to change a game as the financial services landscape is expected to have many strong players on the podium, such as large incumbents, both niche and diversified non-banks, new -age and mature fintechs. , aggregators and financial services firms”.
However, it stated that “more than 70 percent of respondents believe that most Fintechs may not be profitable in the next 2-3 years.
The volume of digital investments in the country grew from 4.5 million in 2021 to 9 million in 2022, growing 100 percent.
The volume of neobanking rose from 2.5 million to 4 million at the same time, reporting 60 percent growth in just one year, the report said.
ALSO SEE :
RBI Financial Inclusion Index – here’s what it means and why it matters
Big actors take a big chunk of Bollywood profits, but will recent flops lead to content and revenue correction?