India’s fintech companies are at the precipice of significant value-creation of $100 billion over the next five years, a report jointly undertaken by industry body Ficci and Boston Consulting Group revealed.

The survey also said that 39 per cent of Indian fintechs surveyed have presence outside India and 73 per cent are actively considering international expansion opportunities.

South-East Asia was the most sought-after destination for international expansion, followed by North America, the report showed.

Several Indian fintechs are well-positioned to establish a global footprint owing to their transplantable business models and proven track record of success, it added.

“To actualize this potential, the industry would require investments to the tune of $20-25 billion till 2025. Consequently, the number of Indian FinTech Unicorns will more than double over the next few years,” Prateek Roongta, Managing Director and Partner, Boston Consulting Group India said.

India’s fintech industry has over 2100 companies of which 67 per cent have been set up over the last five years.

The total valuation of the industry is estimated at $50-60 billion. According to the report, the industry’s growth has been undeterred by the pandemic, as it has seen the emergence of three new Unicorns and five new Soonicorns ($500 million-plus valuation) since January 2020.

The strong growth in the fintech industry is due to India’s deep-rooted customer demand, diverse capital flows, strong tech talent and enabling policy frameworks, a Ficci release said.

Over the next five years, India’s fintech industry is expected to continue its strong upward trajectory.