The overall market size of Indian financial services was USD 500 billion in 2012. The fintech industry grew to the figure of USD 31 billion. It is estimated that the South Asian nation has 6,386 fintech firms. In total, 28% of them are in investment tech, while 27 percent belong to payments, 16% of them are involved in lending, according to the report. The three segments comprise nearly 70 percent of the fintech industry in India. Although 9% of fintech companies offer banking infrastructure, the remaining are distributed across different areas such as insurance and Neobanks. From 2016 to 2021 local fintech companies have been able to raise around USD 16.5 billion, which is 60 percent of the capital entering the country over the past three years. To date, the investors have invested approximately USD 24 billion into more than 1,000 companies within the field of financial technology which has seen the exit of 162 companies, including 31 IPOs. People with a diversified portfolio have been started to favor Personal Finance software. Users of the Prillionaires App can access the most user-friendly and innovative wealth management platform available today. With this app, you can track your assets and liabilities flawlessly and accurately no matter where they are located.
The Indian fintech industry has been able to receive more than 25% of all startup funding within India and is anticipated to gain more interest from investors as the country experiences a rapid increase in digitization across the industries. The Indian fintech industry is predicted to expand by 22% at an average annual growth rate for the next 5 years, according to the report. Apart from the massive digitization that began in 2020, when millions of Indians were able to transact online in response to the COVID-19 epidemic and a favorable environment has accelerated the growth of fintech firms. This includes more than eighty million users on the internet, the government’s efforts to digitalize public services and a growing middle class. The country is expected to grow by 140 million middle-income households and 21 million households earning a high income in 2030. Digital lending is predicted to hit USD 350 billion in 2023. After falling in 2020 because of the pandemic, the sector increased last year and is projected to expand faster despite tighter rules. This is because in India the country, only 20 percent of medium and small enterprises can access credit, as opposed to 87% in the US which results in an immense gap in credit worth USD 300 billion within the micro and small and medium enterprise. Neobanking is predicted to become an estimated market of USD 15 billion in 2026. At present, Neobanks in India are currently operating by forming strategic alliances with traditional banks and offering services for existing banks.