According to the report ‘India FinTech: A USD 100 Bn Opportunity’ released by Boston Consulting Group (BCG) & Federation of Indian Chambers of Commerce & Industry (FICCI), India’s Fintech Sector is expected to reach a valuation of USD 150-160 Billion by 2025.
- The USD 150-160 Billion valuation will help in translating to an incremental value-creation potential of about USD 100 Billion.
- In order to meet the USD 150-160 Billion valuation by 2025, India’s fintech sector will need investments of up to USD 20-25 Billion over the next five years (2021-25).
- The report also states that by 2025 the number of Indian fintech firms with Unicorn status (billion-dollar-valuation firms) will double.
Performance of India’s Fintechs
- In the last five years (2016-2020), Indian fintech companies have also raised about USD 10 Billion from investors all over the world raising the Fintech sector’s total valuation to ~ USD 50-60 Billion.
- At present, there are 2, 100 fintech firms in India out of which 67% have been set up in the past five years (2016-20).
- To date, 8 Fintech companies have reached the Unicorn status (billion-dollar-valuation) in India and around 44 firms are valued at over USD 100 Million as of date.
- Three new unicorns (Pine Labs, Razorpay and Digit Insurance) & 5 new ‘Soonicorns’ (about to become unicorns) have been created since January 2020.
Acceleration of digitisation
- The report states that COVID-19 has accelerated the pace of digitisation across categories.
- Unified Payments Interface (UPI) values have increased more than 3 times compared to pre-pandemic values.
- Similar acceleration has also been seen in online broking, where the share of active clients with fintech discount brokers (Zerodha, Upstox, 5paisa) grew from 43 per cent to 57 per cent in the same timeframe.
Recent Related News:
i.July 24, 2020, The 1st edition of the world’s largest Global Fintech Fest (GFF) was held virtually, it was organized by the Payments Council of India (PCI) and Fintech Convergence Council (FCC) at National Payments Corporation of India (NPCI) under the theme “Fintech: With and Beyond COVID”.
About Boston Consulting Group (BCG):
CEO – Rich Lesser
Chairman & MD of Asia-Pacific region – Neeraj Aggarwal
Headquarters – Boston, USA
President – Uday Shankar
Headquarters – New Delhi