A Survey of the Indian Fintech Scene
Peter Johnson- Jan 6, 2024
- 7 min read
Investment levels, deal volumes, and Fintech strength have placed Indian Fintech as third in the global ranking of growth. It can also be stated that India is one of the fastest-growing Fintech markets in the world, and this can be seen from the facts and figures.
The ecosystem has demonstrated impressive durability as it progresses to a key “middle phase” of its expansion path.
When looking at the total number of financial technology (fintech) unicorns around the world, India has the third largest amount with 23 Fin-tech unicorns, while the US and the UK maintained their top two positions.
A host of elements resulted in the remarkable growth of the Fintech sector. The Digital Lending Guidelines provided by the Reserve Bank of India making certain of customer security and openness, to Fair Lending Practices and implemented interest rate limits — it was about creating the business to be more secure and conscientious.
Fintech in India is developing at a fast rate, making it clear that there are significant disparities in the nation. Despite India having the most bank accounts across the world, the mean balance per account is still inadequate.
India boasts an expansive banking system, having 137 banks, 120,000 branches, $1.35 trillion in deposits, and $900 billion in outstanding credit. Remarkably, the sector has been exhibiting growth twice as fast as the population, doubling in size every five to six years.
The Indian government's initiatives like "Digital India" and significant events such as demonetisation in 2016 and the pandemic in 2020 have been the catalysts for the fintech revolution in the country. This has resulted in a CAGR of 45% growth for digital payment transactions, from 2,071 crores in FY 2017-18 to 13,462 crore in FY 2022-23 (MoS Finance).
In spite of apprehension regarding the prospect of economic turbulence in 2023, we still demonstrate the shifting nature of our economy when evaluating indicators on a per capita basis. The pandemic has hastened the digital transformation of the fintech sector, resulting in its success.
There has been an obvious increase in India's utilization of financial technology, or fintech. Fintech companies have transformed the supplying of financial services, contesting long-established financial approaches and altering the Indian financial ecosystem. 535 institutional investors put forth sizable investments in Indian fintech startups in 2021, a figure that nearly doubled to 1,019 in 2022.
In 2022, the fintech market in India experienced significant expansion and rose to become the country’s second-most supported startup sector. Technology is used extensively by fintech companies to offer innovative financial solutions and services.
Today, leading fintech companies such as Razorpay and Slice are revolutionizing digital finance, particularly among the younger working population.
By 2023, Slice had revolutionized the online space with the introduction of a groundbreaking credit scheme which included EMI shopping without charges, improved credit card approvals and rapid personal loans. This novel setup became a hit with the tech-savvy younger generation of Indians, allowing them to have smooth digital banking experiences.
Their slogan conveys it all.
Be at ease with finances.
It can be stated that the government's dedication to digital initiatives, as well as their diligence in streamlining regulations and boosting cybersecurity, ensures a promising future for the industry. India is proving to be a prime exemplar of innovation and transformation in the financial services industry.
It is expected that the rapidly growing Indian FinTech industry will be generating $200 billion in revenue and $1 trillion in AUM by 2030. The government, relevant regulators, a strong VC environment, abundant demographic advantages, the widespread use of FinTech, and the easy availability of talent and technology to entrepreneurs are some of the main elements that have been contributing to and forming the Indian fin-tech landscape.
Let us take a thorough look at the trends that have been influential in this dramatic increase.
The pandemic has led to a surge in the usage of digital tech. People have started to make digital payments, buy investment products, get virtual insurance, and so on, completely immersing themselves in the digital world. The impact has not only been felt by the individual consumer.
The popularity of FinTech services among MSMEs (micro, small, and medium-sized businesses) is increasing. These enterprises have different requirements compared to consumers and large organizations, so they represent a special customer base.
The rapid progress of a payments ecosystem is made possible by the increased acceptance of technology and innovation, thus enabling a range of safe, secure, creative, and effective payment methods to become available. can help propel medical research and development.
AI can facilitate progress in medical research and development.
On this voyage, AI is becoming the main driver of financial incorporation. By studying past client activity and understanding their changing inclinations, AI offers banks and other monetary foundations a chance to give personalized financial services.
An illustration of the increasing uptake of AI is the rising application of virtual assistants run by AI to offer tailored proposals and respond to customer inquiries continuously.
You must be familiar with Eva, the AI chatbot and virtual assistant produced by HDFC Bank. Senseforth AI Research created Eva which is able to handle full conversations.
So far, there have been over 5,30,000 separate people engaging with it, and over 1.2 million conversations have concluded as a result! Truly outstanding.
The use of AI solutions by financial institutions in their full range of products and services will facilitate the attainment of financial inclusion objectives in a shorter time frame as they are able to cater to a wide variety of customers with specialized options.
Super Apps, also known as all-in-one apps, are applications that provide a variety of services, typically ranging from entertainment to finance. These apps allow users to access a range of products or services in one location.
Super Apps, which are sometimes referred to as all-in-one apps, are applications that provide multiple services, typically covering a broad range of categories such as entertainment and finance. These apps allow customers to conveniently access a variety of products or services from one single location.
An umbrella software termed a super-app provides a comprehensive range of services meeting users’ requirements and tasks through one platform or interface. To attract people and afford a broad variety of activities and features, the apps usually contain a database of external services inside an individual system. The utilization of large datasets is integral to this process.
What customers are asking for is for fintech apps to facilitate a marketplace where they can trade, invest in insurance, and access digital currencies and various other items and services.
Paytm is a classic example of a successful finance-oriented super app that provides a unified service. It is the go-to solution for everyday finance tasks such as online shopping, bill payments, mobile recharging, and money transfers, so it is not surprising that the company's operating income rose 61% YoY to ₹7,990 Cr in FY23.
India's high number of mobile internet users has had a substantial effect on the necessity for digital financial services. By 2023, the nation had become a main global fintech superpower, with the third highest count of fintech firms.
The three highest rated Indian Fintech companies are: 1) Paytm, 2) Razorpay, and 3) Nykaa.
One of India's pioneering and widely known mobile payment and financial services firms is Paytm. As of 2023, its worth is estimated to be at $25 billion. The company's name speaks for itself & simply states "pay via mobile". It is capable of providing banking, lending, insurance and payment services for both consumer and enterprise purposes.
The company offers a variety of online services, such as mobile recharges, utility bill payments, and booking for travel, movies, and events. It also allows customers to make in-store payments at grocery stores, restaurants, parking lots, pharmacies, and educational institutions using their Paytm QR Code. Additionally, customers can benefit from loan disbursement services and assistance for small businesses on the platform. is a digital payments platform that facilitates hassle-free online payment transactions
PhonePe is a platform that simplifies online payment transactions by providing a convenient way to pay.
PhonePe was the pioneer in crossing the billion-transaction mark and was among the original to be launched on the Unified Payments Interface (UPI).
Users of the app can take advantage of services such as sending and receiving money, checking bank balances, making POS payments, buying gold, and executing various activities like mobile recharges and utility bill payments. Indian retailers make plentiful use of the app, enabling their customers to do online shopping, order takeout, and arrange transportation, among other things.
As of 2023, its worth is estimated to be $12 billion. is an Indian payment gateway
Razorpay is an Indian-based payment gateway.
Introduced in 2014, Razorpay has emerged as a leading company in the world of online payments in India. Boasting a simple, secure, and economical way to accept and process digital payments, it is on par with other fintech companies such as Mobikwik and Ola Money, giving customers a vast array of payment selections, including debit and credit cards, UPI, net banking, and various digital wallets.
Razorpay stands out from the rest due to its comprehensive system of invoicing and collecting payments, designed specifically for businesses. Further, it is endeavouring to create its own NeoBank, an exclusively web-based financial institution.
Following the completion of its most recent round of funding, Series F, Razorpay is now valued at $7.5 billion, solidifying its status as one of the most rapidly expanding Indian Fintech unicorns!
India is set to experience a major Fintech revolution, in which technology companies, banks, and regulators will collaborate to drive innovation. Research suggests that the market size could be up to $150 billion by 2025.
Firms can envisage further progress in Fintech in the coming days, encompassing widespread use of AI, blockchain-supported secure dealings, novel types of currency (for instance, crypto and virtual money), and so on.
There have been huge predictions regarding the FinTech market for the upcoming ten years, and this has placed a spotlight on advancements in digital finance.
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