India Fintech Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indian Fintech Market is segmented by type (Digital Payments, Personal Finance, and Alternative Lending) and by Application (E-commerce, Utilities, Travel, and Other Applications).

Market Snapshot

Study Period: 2016 - 2026
Base Year: 2021
CAGR: 12 %

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Market Overview

  • The Indian Fintech market is estimated to record a CAGR of approximately 12% during the forecast period.
  • The Indian Fintech industry has shown huge growth over the past few years. India is gradually becoming a hub for many Fintech startups, the prominent names in the list are Paytm, Pine labs, PayU, and Faircent. SoftBank has been actively investing in many potential fintech startups. India has secured the second position in the world with the largest fintech startups following the United States in 2018 (over 1,300 Startups were added between 201 to 2018 period). Government initiative toward promoting digitization of financial systems and cashless economy has been helpful in shifting consumer focus toward digital alternatives for financial transactions and services.
  • The adoption of Fintech, worldwide, grew at a rate of 64% in 2019, and in emerging markets, like China and India, the growth rate is at 87%. Funding from a diverse set of domestic and international stakeholders also contributed to the growth in digital payments. The rise of digital commerce, innovation in payments technology using AI, blockchain, the Internet of Things (IoT), and real-time payments and the introduction of mobile point of sale (POS) devices have also contributed to growth. 80 % of the banking activities at top banks in the country run on digital channels, the country also has its own remittance programs that include FXNetworks, InstaReM, and Remitly. Many of these companies launch innovation labs, partnering with fintech firms to develop Proof of Concept (POC) and to roll out products. Reserve Bank of India helps finance startups with loans for technology, while government approved new banking licenses and increased the FDI limit in the insurtech sector.

Scope of the Report

This report aims to provide a detailed analysis of the Indian Fintech market. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Also, it analyses the key players and the competitive landscape in the Indian Fintech market.

Digital Payments
Alternative Lending
Personal Finance

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Key Market Trends

Increase in Mobile Banking Payments

Digital payments are rapidly growing across India. The increase in digital payments and wallets triggered after demonetization and continued to run the payments landscape in the country. India is one of the largest markets in the world for mobile phones. Government initiative for cashless economy boost the digital payments in the country. This exponential growth of the digital payment sector is driven by multiple factors, including convenience to pay, the ever-growing smartphone penetration, rise of non-banking payment institutions (payments bank, digital wallets, etc.), progressive regulatory policies, and increasing consumer readiness to the digital payment platform. Another key driver of digital payments is positive policy framework changes and government initiatives, like the launch of new payments systems, like - UPI, Aadhar linked electronic payments, and improvement of the digital infrastructure.


Increase in Fintech Deals in Indian Startups:

The number of Fintech deals has been increased in the country. In the second quarter of 2019, India witnessed 23 deals and China 15 deals in the same period. Some of the large Indian Fintech deals in 2019 are payment firm Razor Pay raised USD 75 million in June by Sequoia and Ribbit Capital and a digital insurance startup Acko raised USD 65 million from Binny Bansal (Co-Founder of Flipkart), SAIF Partners, and others. Investors have invested more than USD 13.3 billion in Fintech companies since 2014 in India. In 2019, ZestMoney, a consumer lending startup raised USD million from Goldman Sachs and their existing investors are Naspers Fintech, Quona Capital, and Flourish. The business-to-business (B2B) fintech space attracted USD 657 million, surpassing the USD 617 million flowing into business-to-consumer (B2C) fintech startups so far in 2019. 11 Fintech startups raised around USD 365 million in July 2019 that puts the total investments coming into this sector at USD 1.16 billion, almost equaling the entire year’s Fintech funding at USD 1.4 billion in 2018.


Competitive Landscape

The report covers the major players operating in the Indian Fintech market. The Indian Fintech market is fragmented, due to the increase in the number of startups in the Fintech market. Fintech startups, funded by global investors, are actively participating in the market competition and giving challenges for established market players in India. Government initiatives toward a cashless economy, smartphone penetration, and many other factors drive the market.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Application

      1. 5.1.1 E-Commerce

      2. 5.1.2 Utilities

      3. 5.1.3 Travel

    2. 5.2 Type

      1. 5.2.1 Digital Payments

      2. 5.2.2 Alternative Lending

      3. 5.2.3 Personal Finance


    1. 6.1 Vendor Market Share

    2. 6.2 Mergers and Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 Paytm

      2. 6.3.2 MobiKwik

      3. 6.3.3 Policy Bazaar

      4. 6.3.4 PayU

      5. 6.3.5 Kissht

      6. 6.3.6 Shubh Loans

      7. 6.3.7 Lending Kart

      8. 6.3.8 Phonepe

      9. 6.3.9 Faircent

      10. 6.3.10 ET money

    4. *List Not Exhaustive

  8. 8. APPENDIX

**Subject to Availability

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Frequently Asked Questions

The India Fintech Market market is studied from 2016 - 2026.

The India Fintech Market is growing at a CAGR of 12% over the next 5 years.

Paytm, MobiKwik, Policy Bazaar, PayU, Kissht are the major companies operating in India Fintech Market.

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