India’s fintech industry set to boom in next 5 years: Report

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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.</p>
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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.</p>
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South-East Asia was the most sought-after destination for international expansion, followed by North America, the report showed.</p>
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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.</p>
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“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.</p>
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India’s fintech industry has over 2100 companies of which 67 per cent have been set up over the last five years.</p>
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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.</p>
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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.</p>
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Over the next five years, India’s fintech industry is expected to continue its strong upward trajectory.</p>