On March 13, 2021, the FICCI and BCG had unveiled their study in a report which highlighted the potential of India’s Finance Technology (FinTech) industry with considerations of its growth factor.
The Boston Consulting Group (BCG) and the Federation of Indian Chambers of Commerce and Industry (FICCI) have revealed their report named ‘'India FinTech: A USD 100 Billion Opportunity’ with detailed study and findings related to Indian FinTech market. “The Indian FinTech industry has been expanding on a fast pace. The key players of the industry are re-defining the business models across various segments of this industry, aiding the improvements in delivering the service and operating towards digital transformation. For FICCI, this is a transparent field to be focused on and through various initiatives, we will promote this industry continually, both in India as well as abroad.” revealed the report. Furthermore, BCS added that the Indian FinTech industry will need an investments in the range of US$ 20-25 billion by 2025, to reach the actual potential of this industry.
Currently, the Indian FinTech industry has over 2,100 FinTechs operating in the country, from which about 67% have been established in last five years. Contemporarily, the market value of Indian FinTech industry stands at US$ 50 -60 billion. The extension of this industry was unaffected by the COVID-19 epidemic. In fact, since January 2020, three new FinTech start-ups have reached a valuation of US$ 1 billion and about five new FinTech start-ups have achieved a market valuation of US$ 500 million.
This strong growth of Indian FinTech industry can be traced in its adequacy of tech professional, multiple capital flows, increasing consumer demands, and commissioned framework of policies. Owing to these factors, the Indian FinTech industry is poised to witness a lucrative growth over the next five years.