Indian fintech sector getting 14% of global fintech funding, says report

23 Aug 2022 , 08:08 AM

According to a recent estimate, the Indian fintech market has received $29 billion in funding across 2,084 agreements so far (January 2017—July 2022), gaining 14% of the worldwide funding and taking the No. 2 rank 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 expanded by 20%, which was higher than that of the US, the UK, and China, which had growth of 16%, 15%, and 10%, respectively.

Having 7,460 fintech companies, India now ranks third in the world behind the US (22,290) and China (8,870).

According to the report, the India fintech ecosystem, which has 23 unicorns out of a total of 106, has grown to the point where it can compete successfully in the international financial services industry and set standards for innovation pace, consumer inclusion, and growth.

With Neobanks being the most recent entrants, other sizable fintechs had begun operating as of 2008.

While the number of fintech companies increased between 2014 and 2021, funding was scarce until 2015, when the industry experienced a sharp increase in funding.

Payments space was further boosted by Covid, which caused funding to increase by 210% between CY 2020 and 2021.

From 4.5 million in 2021 to 9 million in 2022, the volume of digital investments in the nation showed a 100% expansion.

The survey revealed that the volume of neo banking increased concurrently from 2.5 million to 4 million, representing a 60% jump in just one year.