The Indian fintech ecosystem, valued at over US$ 100 billion, is projected to generate 2-3 times this value in the next decade, according to a study by BCG and Z47. As of July 2024, India ranks among the top three global fintech destinations with 12,370 firms, marking a 12% increase since 2019. The sector, which generated US$ 25 billion in revenue by 2023, includes 24 unicorns and has seen a 3.5-fold rise in minicorns, unicorns, and soonicorns in the last four years.
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The Indian fintech ecosystem has generated more than US$ 100 billion in value over the last decade and is on track to generate 2-3x that value in the next decade, according to research by global consulting firm BCG and investment firm Z47 (previously Matrix Partners India).
As of July 2024, India, one of the top three fintech destinations in the world, has 12,370 fintech firms, a 12% increase since 2019, and had secured US$ 26 billion in the previous five years.
The ecosystem, which will generate US$ 25 billion in revenue by 2023, presently boasts 24 unicorns, compared to 28 fintech unicorns in the UK, 131 in the USA, and 22 in China. Furthermore, the number of fintech minicorns (private market valuations of more than US$ 1 million) has increased by 3.5 times in the last four years, as has the number of unicorns (US$ 1 billion valuation) and soonicorns (closer to unicorn status).
Speaking on the study State of the Fintech Union 2024, Yashraj Erande Global Leader, Fintech India Leader, Financial Institutions, BCG stated that the (fintech) ecosystem has matured tremendously, with over 35 fintechs valued at more than US$ 500 million, up from only 13 in 2020.
According to the report, the next phase of growth for Indian fintechs will come from rural and semi-urban areas that are currently underserved. Serving rural and semi-urban areas would necessitate a physical model, with fintech leveraging “feet-on-the-street” distribution and offline distributors enhancing operations with technology, according to the BCG report.
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