Number Of Active Fintech Startups In India

4,827

Estimated Fintech Market Opportunity By 2025

$1.3 Tn

Fastest Growing Fintech Subsector In Terms Of Market Opportunity

Insurancetech

Regulatory Uncertainty

India’s overall fintech market opportunity is estimated to be $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025. Of this, lending tech is likely to account for 47% ($616 Bn), followed by insurance tech at 26% ($339 Bn) and digital payments at 16% ($208 Bn). Among these three, insurance tech is the fastest-growing fintech sub-segment in terms of market opportunity, growing at a CAGR of 57%, followed by investment tech (44%) and fintech SaaS (40%).

In 2021, the country’s fintech startups raised around $8 Bn ($7.97 Bn, to be precise) across 280 funding deals, a record high in both cases, while the average investment ticket size stood at $33 Mn. Among the fintech subsectors, lending tech and digital payment startups bagged the most venture capital inflow in 2021. Together, they accounted for 68% of the total funding amount and 44% of the deal count.

State Of Indian Fintech Report, Q1 2022