India's fintech startups grow fivefold in last three years: Report

India's financial sector is growing at a rapid pace as fintech startups have grown by about five times in the past three years, according to a report. The growth has been from 2,100 in 2021 to 10,500 in 2024.

JM Financial said in a report: "At present time, India has 26 fintech unicorns with an estimated combined market value of $90 billion."

India has one decacorn fintech (valuation of over $10 billion) and 25 unicorns, whose valuation ranges between $1 billion to $10 billion and 37 minicorns, with valuations ranging from $100 million to $1 billion.

There are 87 soonircorn fintech startups in the country, with valuations ranging between $60 million to $100 million.

The report said that the estimated combined value of all fintech companies in India is around $125 billion. The estimated income of all these companies in FY23 was around $20 billion. This was 5 per cent of the total revenue of all banks, financial services and insurance (BFSI) companies in the country.

In India's fintech industry, payment and lending companies are getting a large chunk of funding. 85 per cent of the total funding raised by the fintech industry has been raised by these companies. Between 2014 and 2023, Indian fintech startups have raised about $28 billion in 1,486 deals.

JM Financial said in a report: "Rising consumption, penetration and AI will lead to 150 fintech unicorns and $200 billion in fintech revenue by 2030."

Fintech startups in India include merchant payments, wallets, consumer payments, loans, insurance and wealth management companies.

According to the latest report by Boston Consulting Group (BCG) and Z47 (fka Matrix Partners India), the Indian fintech ecosystem is in its “middle journey.” "The ecosystem is poised for further exponential growth, as seen with incumbents that have created over $600 billion in value over the past 3-5 decades," it added.