India's fintech sector to mint 150 unicorns by 2030: Report
What's the story
India's financial technology (fintech) sector is set to witness a significant surge, with an estimated 150 unicorns emerging by 2030. These start-ups are predicted to have a combined valuation of $500 billion, according to a report by JM Financial and Beams Fintech Fund. The report also forecasts that the combined revenue of Indian fintech firms, will skyrocket to $260 billion by the end of this decade, a significant increase from the current $20 billion.
Industry growth
Payments industry to spearhead boom
The payments industry, bolstered by the success of the Unified Payments Interface (UPI), is tipped to drive India's fintech boom. The report projects that transaction values could touch around $11 trillion by 2030. Additionally, the number of UPI QR codes is tipped to rise from 202 million in 2022 to 317 million by the end of 2024, while point-of-sale (PoS) terminals are predicted to increase to 8.6 million.
Sector expansion
Lending, insurtech, wealthtech sectors to see substantial growth
The report predicts that the lending book size will grow 6.6 times to $300 billion in the next five to six years. The gross written premium in insurtech is expected to reach $15 billion, while assets managed by wealthtech platforms could quadruple to $237 billion. These projections highlight the potential for substantial growth across various fintech sectors in India.
Global ranking
India ranks 4th globally in fintech unicorns
Presently, India is home to 26 fintech unicorns, including one decacorn, with a collective value of $90 billion. This places India fourth globally behind the US, China, and the UK in terms of the number of such unicorns. Notable Indian fintech unicorns include venture-funded firms like PhonePe, Razorpay, Cred, Slice, Acko and privately-held Zerodha among others.
Start-up boom
Fintech start-ups in India have seen exponential growth
The number of registered fintech start-ups in India has seen nearly fivefold growth over the past three years, rising from 2,100 in 2021 to 10,200 in 2024. Between 2014-2023, Indian fintechs collectively raised more than $28 billion across 1,486 deals, with $4.3 billion raised through initial public offerings (IPOs). Major fintech exits via IPOs include Paytm, Policybazaar, AngelOne, Newgen CMS Tracxn and KFin Technologies.