India continues to evince considerable interest in the global FinTech narrative. At MEDICI, we have been closely tracking the evolution and growth of the Indian FinTech landscape over the years. Accordingly, an in-depth look at India’s FinTech funding has been presented in the recently published the India FinTech Report (IFR) 2019 by MEDICI, which also includes detailed insights on the market structure and investment cycle of Indian FinTech companies. The report goes on to illustrate how India has emerged as one of the leading FinTech markets globally, highlighting the evolution, growth, funding, major changes, and trends among FinTech companies in the country.
India’s Evolution as a FinTech Nation
The IFR 2019 summarizes FinTech’s evolution in India in four steps:
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Solving for identity in the form of Aadhaar for formalization.
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Getting everyone a bank account or equivalent (PMJDY) to store money.
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Building a scalable platform(s) to move money (IMPS, UPI, etc.). Here, FinTechs are helping.
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Allowing banks and FinTechs, including wealth/insurance/lending players, to access platforms like UPI to innovate.
This framework has led India to a FinTech revolution. Interestingly, with over 2,035 startups and high growth rate in terms of homegrown startups, India is poised for a FinTech revolution.
India FinTech Funding – Analysis
As per the MEDICI database, it was reported that in 2018, there were 165 PE/VC deals amounting to $1.83 billion of funding. Even though the Lending sector had the most number of deals (67), Payments was the most funded segment with $708.94
