NEW DELHI: Indian fintech market has received USD 29 billion in funding across 2,084 deals to date (Jan 2017-July 2022), gaining 14 percent share of the global funding and No 2 spot on the deal volume, a new report reads.

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.

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

"Fintechs, which account for over USD 800 billion in annual payments transaction value, have significantly boosted the Indian economy and are crucial to the delivery of comprehensive financial services to all Indians. For the USD 5 trillion Indian economy, we consider this sector as mission vital "It made mention. 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.

According to the research, "we have seen an acceleration in the rate at which Fintechs have become unicorns vs. the past with increased investment and valuations." "We have a game-changing five years ahead of us," the research stated, "as the financial services ecosystem is likely to feature many strong characters on the stage, like major Incumbents, specialty as well as diversified non-banks, new-age and mature fintechs, aggregators, and Financial Service Providers."

However, it made notice of "In the next two to three years, most Fintechs may not be successful, according to more than 70% of respondents. While scale is a significant factor in determining profitability, early stage attention on "unit economics" is a crucial orientation ".

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.

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