Funding in Indian fintech startups touched $7.8 billion in 2021 and the industry is expected to handle $1 trillion worth assets by 2030, according to a new report by venture capital firm Chiratae Ventures and EY India.
Indian fintech firms are expected to clock $200 billion in revenue by 2030, the report added.
At present, most of the funding has been skewed towards digital payment firms. Of the total $7.8 billion raised by the sector last year, $3.5 billion (roughly 44%) went to fintech payment firms, it said.
As India’s payment landscape evolves, technologies such as near-field communication (NFC) payments, soft point-of-sale (PoS) penetration, and central bank digital currency (CBDC) use cases are expected to drive new innovations in this space, according to the report.
Fintech models are evolving to be ‘pervasive’ across most sectors, and have found applications across segments such as agriculture, supply chain and ecommerce, among others, Chiratae Ventures cofounder and vice chairperson TC Meenakshi Sundaram NSE -0.81 % told ET.
“Financial services are the plumbing infrastructure. Our belief is that fintech will become more and more horizontal, propping up in the intersection of agri-tech, proptech, and B2B supply chain. The regulatory environment for the sector is also developing and we see a lot more openness from the government and regulator towards fintechs to integrate with the economy,” he said.
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