India's fintech sector is experiencing a remarkable transformation, solidifying its position as a global leader. According to data analyzed by JM Financial, the Indian fintech market has surged to a market value of US$ 90 billion and boasts an impressive portfolio of 26 fintech unicorns, including one decacorn. This growth underscores India's rising prominence in the global fintech landscape.

Over the past three years, the fintech startup ecosystem in India has expanded dramatically. The number of registered fintech startups has grown fivefold, from 2,100 in 2021 to 10,200 in 2024. This exponential increase highlights the sector's dynamic growth and the increasing interest in fintech innovations across the country.

India now ranks third globally in terms of the number of fintech unicorns, trailing only behind the United States and China. The sector's valuation is comprised of 25 unicorns valued between US$ 1 billion and US$ 10 billion, 37 minicorns valued between US$ 100 million and US$ 1 billion, and 87 soonicorns valued between US$ 60 million and US$ 100 million. The combined valuation of these companies is estimated at US$ 125 billion, reflecting the sector's robust financial health.

In terms of revenue, fintechs contributed approximately US$ 20 billion in FY23, representing about 5% of the total revenues from all BFSI (Banking, Financial Services, and Insurance) companies in India. This significant contribution highlights the sector's growing impact on the Indian financial ecosystem.

The Indian fintech landscape is predominantly driven by the payments and lending sectors, which attract a staggering 85% of the capital raised. From 2014 to 2023, fintech startups secured over US$ 28 billion through 1,486 deals, underscoring the sector's attractiveness to investors. Additionally, the industry has witnessed substantial exits, with 20 fintech companies going public over the past two decades.

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Mergers and acquisitions have also been a major feature of the fintech sector, with deals exceeding US$ 4 billion in the past decade. The diverse business models within the sector range from merchant payments and wallets to lending, insurance, and wealth management. This diversity reflects the sector's adaptability and its potential to cater to various financial needs and preferences.

Looking towards the future, JM Financial projects that rising consumption, increased penetration, and advancements in artificial intelligence (AI) could propel the sector to new heights. By 2030, India is expected to have 150 fintech unicorns and achieve US$ 2.38 billion (Rs. 200 billion) in fintech revenue. This projection signifies continued growth and the sector's potential to drive significant economic value.

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