Snapshot
India - A Global FinTech Superpower
India has the highest FinTech adoption rate Globally.
India is amongst the fastest growing Fintech markets in the world. Currently there are 2,000+ DPIIT-recognized Financial Technology (FinTech) startups in India with this number growing fast.
Indian FinTech industry’s market size is $50 Bn in 2021 and is estimated at ~$150 Bn by 2025.
Fintech sector in India is expected to be $1 Tn in Assets Under Management (AUM) and $200 Bn in revenue by 2023. Payments, Lending & InsurTech stood as the most preferred sectors (2021).
The Indian Fintech industry ecosystem sees a wide range of subsegments, including Payments, Lending, Wealth Technology (Wealth Tech), Personal Finance Management, Insurance Technology (InsurTech), Regulation Technology (RecTech), 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 September 2022, India’s Unified Payments Interface (UPI) has seen participation of 358 banks and has recorded ~6.8 Bn transactions worth over $135 Bn.
- %
CAGR of Fintech market size in 2025
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Growth in number of deals from 2021 H1 as compared to 2018 H1
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CAGR in growth in digital payments transactions from FY19-21
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Highest expected RoI on Fintech projects globally
More than $30 Bn Funding since 2014
Highest Fintech adoption rate globally (87%)
3rd largest FinTech ecosystem globally
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
The Fintech segment in India has seen an exponential rise in funding over the last few years; the sector received funding worth ~$9.8 Bn in 2021, led by the Payments segment (53% share of fintech funding across all fintech verticals in India.)
Equity funding into Indian FinTechs has grown at a CAGR 26% over last 4 years, but more rapidly so from 2020 onwards, fuelled by the post-pandemic impact of high growth via increased digital services adoption. The Indian Fintech growth story continues to hold strong, with ~150 deals/quarter
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.
India records over 23 bn digital payments worth INR 38.3 lakh Cr in Q3,2022
UPI transactions in India witnessed a growth of 650% at the semi-urban and rural stores in India. A growth of nearly 25% and 14% in value and volume, resp, in assisted financial transactions across semi-urban and rural retail counters in the country in 2022.
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%.
India’s digital payments market is at an inflection point and is expected to more than triple from $3 Tn today to $10 Tn by 2026. As a result of this unprecedented growth, digital payments (non-cash) will constitute nearly 65% of all payments by 2026 i.e., 2 out of 3 transactions (by value) will be digital.
The Fintech revolution in India is the culmination of years of effort in laying the groundwork towards developing key enablers through important initiatives:
- Jan Dhan Yojana: Jan Dhan Yojana: The world’s largest financial inclusion initiative, “Jan Dhan Yojna”, has helped in new bank account enrollment of over 450 Mn beneficiaries for direct benefits transfer and accessibility to a host of financial services applications such as remittances, credit, insurance, and pensions enabling FinTech players to build technology products to penetrate the large consumer-base in India.
- Financial Literacy: Some of the recent initiatives towards improving financial literacy in India include setting up the National Centre for Financial Education and implementation of the Centre for Financial Literacy project by the RBI. These steps aim to promote financial education across India for all sections of the population.
- E-RUPI: e-RUPI is a person & purpose specific digital payments instrument to allow for contactless & cashless payment solutions and shall play an important role in making the Direct Benefits Transfer more seamless & effective. The solution is being adopted for cashless payments for Covid-19 vaccination.
- India Stack: IndiaStack is a set of APIs that allows governments, businesses, startups and developers to utilise a unique digital Infrastructure to solve India’s hard problems towards presence-less, paperless, and cashless service delivery. The India Stack has been the driving force behind the accelerated evolution of Fintechs. It is one of the most important digital initiatives undertaken globally, aimed at putting up a public digital infrastructure based on open APIs to promote public and private digital initiatives and has played a catalytic role in India’s digital foundation and evolution.
GROWTH DRIVERS
Volume of Funds
High volume of funding from venture capital, private equity and institutional investors driving innovation in the sector.
India stack
Open API platforms i.e. Aadhar, UPI, Bharat Bill Payments, GSTN
Technological Innovation
Implementation of new business models driven by technologies such as Artificial Intelligence and Machine Learning
Increasing internet & smartphone penetration
India already has the 2nd highest number of smartphone users globally and is the 2nd largest Internet user market. ~1 Bn Internet Users by 2026. The number of households with internet connections with an increase by 46%, reaching 233 Mn households by 2026, compared to 160 Mn in 2021
Favourable Demographics
68% of India’s population is young and 55% of its population is in the age group of 20-59 (working population) in the year 2020 and is estimated to reach 56% of the total population by 2025. By 2030, India will add 140 Mn middle-income and 21 Mn high-income households which will drive the demand and growth of Indian FinTech space.
Financial Inclusion Initiatives
Financial inclusion programmes such as PMJDY, DAY-NRLM, Direct Benefit Transfer, Atal Pension Yojana among others have accelerated the digital revolution and brought more citizens, especially in rural areas, within the ambit of digital financial services

