India's FinTech market is rated as the third highest in the world

India is amongst the fastest growing Fintech markets in the world. There are more than 2,100+ FinTechs existing in India today, over 67% have been setup in the last 5 years. The Fintech segment in India has seen an exponential rise in funding over the last few years. India has seen tremendous growth on the Digital Payments front, clocking a monthly volume of over 5.7 Billion transactions worth ~$2 Trillion (Total Digital Payments) in September ’21. India has over 18 Fintechs which have gained ‘Unicorn Status’ in the year 2021. Adoption of the internet in rural areas is also expected to complement the rise of technology startups.

FinTech companies operating in mobile payments, insurance, blockchain, stock trading and digital lending will grow further and capitalise on internet penetration. The Fintech revolution in India is the culmination of years of effort in laying the groundwork towards developing key enablers through important initiatives including Jan Dhan Yojana, Financial Literacy, E-RUPI and the India Stack, a set of APIs that allows governments, businesses, startups and developers to utilise a unique digital Infrastructure to solve India’s hard problems towards presence-less, paperless, and cashless service delivery.

The India Stack has been the driving force behind the accelerated evolution of Fintechs. It is one of the most important digital initiatives undertaken globally, aimed at putting up a public digital infrastructure based on open APIs to promote public and private digital initiatives and has played a catalytic role in India’s digital foundation and evolution. The Indian FinTech market currently stands as the third largest FinTech ecosystem in the world behind the US and China. However, India still remains an untapped market due to lower penetration of financial services.

The overall size of the Indian financial services sector in 2021 is estimated at $500 billion, of which, the FinTech market comprises $31 billion, according to a report by BLinC Insights. In the next five years, the FinTech sector is expected to grow with a compound annual growth rate of 22%. Going forward, 15 FinTechs are set to join the Unicorn club in 2022.