World's leading fintech ecosystems revealed. Where does India stand? (2024)

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World's leading fintech ecosystems revealed. Where does India stand? ›

India is among the leading fintech ecosystems in the world, with as many as 17 fintech 'unicorns

India has ranked third among the countries with the most financial technology (fintech) unicorns in the world in 2023, with the US and UK retaining the top two positions globally.

India is amongst the fastest growing Fintech markets in the world. Indian FinTech industry's market size is $50 Bn in 2021 and is estimated at ~$150 Bn by 2025.

India is one of the fastest-growing fintech markets in the world. Home to thousands of companies using technology to automate and enhance banking, lending, accounting and investing, the country's fintech market is expected to be worth $1 trillion by 2030.

It's no secret that the United States has the best fintech ecosystem in the world, with the United Kingdom and Singapore trailing closely behind.

Some of the well-known fintech companies in India include Paytm, PhonePe, Razorpay, Policybazaar, Zerodha, CRED, Pine Labs, and Lendingkart, among others.

Recent economic surveys from 2020 and 2021 also indicate increased fintech usage across all banking functions, facilitating data-driven lending decisions, efficient processing, and reduced operating costs, all contributing to India's journey towards a $5 trillion economy.

Fintech, which refers to the use of technology in the financial services industry, has rapidly evolved in India due to high smartphone penetration and the government's push towards digitalisation.

Fintech firms are playing a significant role in bridging financial inclusion and gender gaps in India by making financial services more accessible, affordable, and user-friendly, thereby helping to empower women and other underserved groups.

Funding among Indian fintech startups surged 59 per cent quarter-on-quarter (Q-o-Q) to $551 million in the first quarter (Q1) of calendar year (CY) 2024, up from $346 million in the previous quarter, according to a report by market intelligence platform Tracxn.

How big is the finance industry in India? ›

Total revenue in the Finance market is projected to reach US$9.34m in 2022. Total revenue is expected to show an annual growth rate (CAGR 2022-2027) of 14.02%, resulting in a projected market volume of US$19.55m by 2027.

Alternatively, fintech valuation can be derived through an AUM multiple, which factors in the total value of assets managed by the startup. In India's fintech landscape of 2024, AUM multiples typically range from 2-4x, providing investors with a benchmark for assessing the intrinsic value of a startup's asset base.

In India, notable profitable companies in the fintech sector include Zerodha, a stock brokerage platform, Billdesk, a fintech firm, and Paytm, among others. Fintech giants like Zerodha, Razorpay, Pine Labs, Paytm, Billdesk, and others have also achieved profitability.

In 2022, the UK city overtook San Francisco and New York as the world's biggest centre for fintech investment, attracting £7.8bn (US$9.69bn) in fintech investment for 2022 – more significant than the US$7.8bn raised for New York fintechs and US$7.4bn raised for those in San Francisco.

In 2021, the FinTech market in India rapidly expanded to a size of $50 billion and is forecasted to reach an impressive $150 billion by 2025.

Unicorns worldwide: India ranks third with 67 unicorns, US has 703, China has 340 - BusinessToday.

With Fintech adoption rate at 87% against the global average of 64%, India has emerged as one of the largest digital markets in the world. Fintech Sector has huge potential in India, supported by an enabling policy and digital infrastructure framework.