India remained the top fintech destination in Asia after the country attracted nearly $647 million investment across 33 fintech deals during the quarter, ending 30 June 2020. Investment activities in the Chinese fintech sector reached $285 million during the same period.
According to a report published by RBSA Advisors, in the last 4.5 years, total investments in India’s fintech sector crossed $10 billion. The country attracted $1.46 billion in fintech investments during the first half of 2020, which is a 60% jump compared to $919 million for the same period in 2019.
“Out of the total of 21 unicorns in India, nearly 33% are FinTech companies, Paytm being the highest valued unicorn, at $16 billion. The FinTech market in India was valued at INR 1,920 Billion in 2019 and is expected to reach INR 6,207 Billion by 2025, expanding at a compound annual growth rate (CAGR) of 22.7% during the 2020-2025 period. While the FinTech industry is still in its early adoption stage, we believe it is well-positioned to witness long-term growth in the coming years. The changes will be more focused on digital lending (alternative finance) and open banking. FinTech growth will ultimately create outsized opportunities for firms and help empower them in the digital age,” the official report states.
India’s Growing Fintech Sector
BharatPe, India’s leading fintech startup, recently raised nearly $108 million in Series D funding from several investors. The sector is growing exponentially in the country amid the COVID-19 crisis and a major shift towards a cashless society.
“FinTech has been known for their coming of age technology owning towards offering the most convenient and flexible options for consumers. It is not surprising that going forward, financial services will offer a customized and local offering to their customers using data analytics. The more and more advances in technology financial services adapt to upgrade their strategies, more growth in this sector is foreseen. This is just the beginning of a huge FinTech market in the upcoming decade,” RBSA Advisors mentioned in the report.