The Indian fintech ecosystem is expected to have 150 unicorns with a combined valuation of $500 billion by 2030, said a report by investment banking firm JM Financial and fintech-focused VC firm Beams Fintech Fund on Tuesday. Backed by rising consumption and AI penetration, the fintech revenue will grow up to $260 billion by 2030 from $20 billion in 2023, the report said.
With 26 fintech unicorns, India currently has the fourth highest count of fintech companies valued at $1 billion or above while the US has 170 fintech unicorns, China has 38 and the UK has 37. In terms of startup count, India has the third-highest number of registered fintechs globally. The country currently has 10,200 fintech companies vis-a-vis around 3,600 in China, around 31,500 in the US and approximately 12,500 in the UK.
Within the fintech space, most of its segments are expected to grow sustainably in the next five to six years. The report noted 6.6x growth in lending book size from $45 billion to $300 billion, 4x growth in gross written premium (GWP) in insurance from $4 billion to $15 billion and 4x growth in assets under management (AUM) in wealthtech segment from $35 billion to $237 billion.
The payments industry, on the other hand, is likely to process $11 trillion in transaction value by FY30 from $4 trillion estimated in FY25. This includes UPI, credit cards, debit cards, prepaid instruments and toll payments.
Speaking on the future of the fintech sector in India, Sagar Agarvwal, Co-founder and Managing Partner, Beams Fintech Fund said positive dialogue between regulators and fintech companies is on the rise, while the transition of experienced bankers into fintech is helping stabilize and refine the sector’s strategic thinking.
“As banks increasingly collaborate with fintechs, and as fintechs secure necessary licenses, the industry is becoming more robust in terms of compliance. Key areas such as payments, lending, insurance, wealth, neo banks, and financial infrastructure are all poised to benefit from the ongoing digitization of the country and the financialization of spending, investing, and saving,” said Agarvwal.
Between 2014 and 2023, Indian fintech startups have cumulatively raised over $28 billion in 1,486 deals while $4.3 billion has been raised by fintechs via IPOs. Key fintech exits via IPO so far have been Paytm, AngelOne, Tracxn, CMS, Policybazaar, etc.
“The sector has come of age over the last 15 years, presenting an opportunity for more than 65 companies to go public over the next seven years, positioning India as one of the largest listed fintech markets globally,” said Agarvwal.