India’s CAGR in the fintech sector grew by 20 per cent, which was higher than that of the US, UK and China, which saw growth of 16 per cent, 15 per cent and 10 per cent respectively. Of fintech union 2022′ report Boston Consulting Group ,bcg) and Matrix Partners India,
With 7,460 fintech companies, India now ranks third behind the US (22,290 fintech companies) and China (8,870).
India’s fintech ecosystem has 23 unicorns (out of a total of 106) and has reached the scale of establishing a strong position in the global financial services market and being the benchmark for innovation, customer inclusion and growth momentum, the report said. .
“Watching an annual payment transaction value of over $800 billion, fintech Have made a strong contribution to the Indian economy, and play a powerful role in the provision of complete financial services to all Indians. We see this collective segment as a mission critical for the $5 trillion Indian economy.”
Several large fintechs started operations in 2008, with Neobank joining recently.
While the number of fintechs grew between 2014 and 2021, funding was low until 2015, after which the sector received a rapid funding boost.
COVID further expanded the payment space, leading to a 210 percent increase in funding between CY 2020 and 2021.
“With increasing funding and valuations, we have seen an acceleration in the rate at which fintechs have become unicorns compared to in the past,” the report said.
The report states that “The game-changing game ahead of us 5 years ahead as the financial services landscape is expected to have many strong actors on the platform, such as large incumbents, niche as well as diverse non-banks, new Aged and matured fintech, aggregator and financial services provider”.
However, it is mentioned that “more than 70 percent of the respondents believe that most fintechs may not be profitable in the next 2-3 years. Although scale is an important driver of profitability, on ‘unit economics’ Early stage attention is a critical orientation requirement”.
The volume of digital investments in the country increased from 4.5 million in 2021 to 9 million in 2022, registering a growth of 100 percent.
The report said that the NeoBanking volume has grown from 2.5 million to 40 lakh, registering a growth of 60 per cent in just one year.