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Sector Overview

India has one of the top five start-up ecosystems in the world and over the years, India has become one of the world’s leading countries in FinTech adoption. FinTech industry in India is strongly positioned to realize a total industry valuation of USD 150-160 billion over the next five years, creating an incremental value of USD 100 billion. A significant amount of value creation will happen as more than 50 new FinTechs will enter the USD 100 million+ valuation club. To realize this potential, India would require USD 20-25 billion of investments over the next five years.

The strength of India’s FinTech landscape is evident from the diversity of its FinTech base. While Payments and Alternative Finance segment constituted more than 90 percent of India’s investment flows in 2015, there has been a shift towards a more equitable distribution of investment across sectors since. In 2020, FinTech SaaS and InsureTechs saw total investments of USD 145 million and USD 215 million respectively, reflecting a 4-5x growth over.

Indian start-ups are well on their way to stamping their presence in international markets. Companies like Ola, Oyo, Zomato and InMobi, having acquired significant scale and established their track record in India, have expanded to new geographies. Several FinTech companies are now following suit. These include B2B SaaS providers, Payment Platforms, Marketplaces and B2C players. An increasing number of Indian FinTechs are now actively considering international expansion. A large majority of these companies have significant potential to successfully take their products and services to new markets.

The growth of the FinTech sector in India can be attributed to an enabling regulatory framework and the tremendous support offered by Government of India.

The Union Budget for the financial year 2021-22, has detailed setting up of a "world-class" FinTech Hub at GIFT City in a bid to bolster innovation in the FinTech industry. The proposed framework by IFSCA is expected to provide an ecosystem for capital raising and listing by FinTech and other start-up companies.

FICCI, through it FinTech Committee, works with industry members from across segments to highlight to the policy makers the emerging requirements of this fast growing sector. We also create opportunities for Indian FinTechs to forge fruitful partnerships with Indian Financial Institutions such as Banks, Insurance Companies, NBFCs etc as well as engage with FinTech Ecosystem partners in other parts of the world for peer learning.