Inc42's State of Indian Fintech Report Q1 2022

© INC42 MEDIA | NOT FOR DISTRIBUTION / 1
InFocus BNPL
Table Of Contents 12 INDIA’S FINTECH ECOSYSTEM: FUNDING TRENDS
Funding Growth Over The Years
Average Ticket Size
3 EXECUTIVE SUMMARY Sectors With Maximum Funding
Stagewise Analysis
4 INDIA’S DIGITAL ECONOMY OUTLOOK
Top Hubs For Fintech Funding
5 INDIA’S STARTUP ECONOMY: A SNAPSHOT Mergers & Acquisitions
6 FINTECH IN INDIA: A SNAPSHOT 23 FINTECH STARTUPS ON THE IPO LADDER
7 INDIA’S FINTECH ECOSYSTEM 2021: KEY HIGHLIGHTS 24 MOST ACTIVE FINTECH INVESTORS IN THE SPOTLIGHT: BNPL
Top 10 Funding
BNPL: An Overview
Top 10 Acquisitions
Key Players
Competitive Landscape
8 INDIA’S FINTECH LANDSCAPE
Market Opportunity
9 FINTECH MARKET OPPORTUNITY IN INDIA Growth Drivers & Market Challenges
Market Size (2021-2025)
34 EARLY STAGE FINTECH STARTUPS MAKING WAVES
Number Of Transacting Users (2021-2025)
Segment-Wise Market Size (2021-2025) 42 INDIA’S FINTECH UNICORNS & SOONICORNS
50 EMERGING TRENDS
Executive Summary
4,827 Number Of Active Fintech Startups In India 61% Internet Penetration In India
$1.3 Tn Estimated Fintech Market Opportunity By 2025 19 Number Of Fintech Unicorns In India
$20 Bn+ Total Funding Raised Between 2014 And 2021 533 Funded Fintech Startups In India
$43 Bn BNPL Market Opportunity In India By 2025 Regulatory Uncertainty Key Market Challenge
Fastest Growing Fintech Subsector In

22 Number Of Fintech Soonicorns In India Insurance Tech
Terms Of Market Opportunity
The Rise Of India’s Digital Economy

The Growing Number Of Internet Subscribers In India
1000
834 Mn+ 61% 931 Mn
Total Number Of Internet Penetration Smartphone Users
825 Internet Subscribers In India In India
In India As Of
Internet Subscribers (In Mn)
750 718 503 Sept 2021

604 450
391 $0.68 4.7 Hours 305 Mn

500 446
392 Per GB Internet Average Hours Spent Users Doing Online
332 314 Cost In India On Mobile Per Day Transactions In
267 276 Per User India
250 220 323
268
175 213
112 115 132 73 Bn $1.7 Tn 337 Mn+

92
0 Total Volume Of UPI Total Value Of UPI Total Number
2014 2015 2016 2017 2018 2019 2020
Transactions As of Transactions As Of Of Rural Internet
Calendar Year Dec.2021 Dec.2021 Subscribers As
Urban Rural Of Sept 2021
Source: TRAI, Statista, App Annie
Fintech Startups That Bagged Biggest Funding Rounds In 2021

Subsector Funding Stage Funding Amount ($ Mn) Notable Participating Investors
Payments Late Stage 985 Fidelity, Invesco, Baron Capital
Payments Late Stage 560 Tiger Global Management, Northern Arc, MAS Financial Services
Payments Late Stage 547 Alpha Wave Global, Tiger Global Management, DST Global
Payments Late Stage 535 Alkeon Capital, Lone Pine Capital, Salesforce Ventures
Investment Tech Late Stage 334 ICONIQ Growth, Sequoia Capital, Tiger Global Management
Crypto Exchange Late Stage 300 Andreessen Horowitz, Coinbase Ventures
Payments Late Stage 250 SoftBank, Sodexo
Lendingtech Growth Stage 283 Insight Partners, Tiger Global Management, Moore Strategic Ventures
Subsector Funding Stage Funding Amount ($ Mn) Notable Participating Investors
Insurtech Late Stage 234 TVS Capital, Faering Capital, A91 Partners
Insurtech Late Stage 225 General Atlantic, Multiples Alternate Asset Management, Munich Re
Lendingtech Growth Stage 215 Barclays, Accel, Sequoia Capital
Fintech SaaS Late Stage 221 Riverwood Capital, Temasek, Emtek Group
Fintech SaaS Growth Stage 159 Spectrum Equity
Source: Inc42 Pus

Note: Only startups funded between Jan- Dec 2021 are taken into consideration
Notable Fintech Acquisitions In 2021

Subsector Company Stage Notable Investors Acquired By
Investment Tech Seed Stage Y Combinator, Soma Capital
Neo-Bank Seed Stage Unicorn India Ventures, PointOne Capital
Fintech SaaS Growth Stage Sequoia Capital, Prime Venture Partners
Fintech SaaS Bootstrapped N/A
Paymnets Late Stage ICICI Ventures, iLabs
Co-operative Bank N/A N/A
Fintech SaaS Growth Stage Vertex Ventures, Prime Venture Partners
Investment Tech Subsidary GAIN Credit
Investment Tech Seed Stage NuVentures, Aravind MJ
Fintech SaaS Seed Stage Y Combinator, Daniel Schryer

India’s Fintech Startup Landscape: Who’s Who In Subsectors

Payments Lendingtech Investment Tech Insurtech Neobanking Fintech SaaS Cryptocurrency
India To Reach A Trillion-Dollar Fintech Market In 2025

The country's fintech market is estimated to grow at a CAGR of 31% during 2021-2025
1500
$1,300
$990
1000
Market Size ($ Bn)
$758
$584
500 $435
0
2022 2023 2024 2025
Neobanking Fintech SaaS Insurtech Investment Tech Lendingtech Payments
Source: Inc42 Plus. Multiple Secondary Sources
Insurance Tech Is The Fastest Growing Fintech Segment In India

The rapid adoption of non-life insurance covering health, education, vehicle and other areas will spearhead the growth of
insurtech for the next three years
Insurtech
Investment Tech
Fintech SaaS
Neobanking
Lendingtech
Payments
0% 20% 40% 60%

Market Size CAGR (2021- 2025)
Fintech Market Opportunity In India To Increase 2.2x In The Next Three Years
Lending Tech to remain the dominant subsector in the Indian fintech market
48 (8.2%) 97 (7.5%)
87 (14.9%) 208 (16.0%)
$584 Bn 270 (46.2%)

$1.3 Tn 616 (47.4%)
2022 2025
165 (28.3%) 339 (26.1%)
Lendingtech Payments Insurtech Neobanking Lendingtech Insurtech Payments Neobanking

Investment Tech Fintech SaaS Investment Tech Fintech SaaS

$8 Bn Raised Across 280 Fintech Funding Deals In 2021
Compared to 2020, the funding amount and deal count surged surged 3.7x and 2x respectively
2014 2015 2016 2017 2018 2019 2020 2021
Source: Inc42 Plus

Note: Funding data for 2021 up to 29 December 2021
Average Ticket Size Of Fintech Investments Hit Record High In 2021

40
$31Mn $33Mn
Average Ticket Size Of Investments ($ Mn)
30
$25Mn
$23.6Mn
20
$19.6Mn
10 $13Mn
$9.7Mn
$5.7Mn
0
2014 2016 2018 2020
Source: Inc42 Plus

Digital Payment Startups Received Maximum Funding In 2021

Pine Labs, BharatPe, CRED and Razorpay were among the top-funded payment startups
Fintech SaaS
3.5% 3.7 Payments
Neobanking 0.267 48.1%
5.3%
0.406
$7.9 Bn
Insurtech Fintech Funding
0.822
10.7%
Investment Tech Lendingtech

1
1.5 19.5%
19.5%
Source: Inc42 Plus

Most Favoured Fintech Segment In 2021

New-age consumer lending products like BNPL and payday loans fuelled investor interest in Lendingtech startups
Lendingtech
Others 86
7.5% 30.7%
23
Fintech SaaS
8.2% 24 Investment Tech
280
19.3%
Funding Deals
Neobanking
3.7 54
8.6%
Insurtech 34
38
12.1% Payments
13.6%
Growth Stage Funding In Fintech Surged 5x In 2021

Between 2020 and 2021, growth stage funding saw the maximum uptick, followed by bridge (3.8x), seed stage (3.7x) and late
stage funding (3.1x)
Fintech Funding Deals Across All Stages Doubled In 2021

The number of funding deals across seed stage startups saw the biggest jump at 2.5x between 2020 and 2021, followed by a
2x rise in late stage deals
Top Startup Hubs For Fintech Funding In 2021

Bengaluru was the top destination for fintech deals and funding; compared to the previous year, the city’s fintech startups
recorded a 163% jump in capital inflow in 2021
Indian Fintech Startups Recorded The Highest Number Of M&As In 2021

30
As digital payment companies and neobanks required full-stack fintech solutions,

the need for technological capabilities and convergence drove the M&A Deal Count activity in 2021
20
M&A Count
10
0
2015 2016 2017 2018 2019 2020 2021
Year
Note: Only M&A deals recorded in our database are taken into account.
Indian Fintech Startups: Listed & Potential IPO In 2022

Headquarters Public Listing Status Current Valuation
Mumbai Listed $464 Mn
Delhi NCR 2022 $1 Bn
Bengaluru 2022 $650 Mn
Delhi NCR Listed $8.7 Bn
Delhi NCR 2022 $5 to $7 Bn
Delhi NCR Listed $5.6 Bn
Source: Inc42 Plus, NSE

Note: Market capitalisation for Paytm, Policy Bazaar and Fino Payments Bank are as on 19 Jan. 2022
Paytm Is The Worst Performing Publicly Listed Fintech Startup In India

Shares of One97 Communications, Paytm's parent company, dipped 23%, from INR 1,304 on December 20, 2021, to INR 1,002 on
January 19, 2022
20%
10%
% Change Daily Closing Price
0%
-10%
-20%
-30%
Dec 27 Jan 27 Jan 10 Jan 17
Paytm Fino Payments Bank PolicyBazaar
Paytm’s Market Capitalisation Eroded At A Weekly Average Of -4.5%

From its IPO month (Nov. 27, 2021) to Jan. 19, 2022, Paytm lost 44% (or $6.7 Bn) of its market cap
20
15
Market Capitalisation ($ Bn)
10
0
20 Nov 2021 27 Nov 2021 4 Dec 2021 11 Dec 2021 18 Dec 2021 25 Dec 2021 1 Jan 2022 8 Jan 2022 15 Jan 2022 19 Jan 2022
Source: CompaniesMarketCap, Inc42 Plus
Share Prices Of All Three Public Indian Startups Has Seen A Downward
Trend Since Their IPOs
20%
Startup IPO Price Current % Change In Share

Price (LTP) Price Since IPO
0%
% Change In Share Price Since IPO
980 999 2%
-20%
577 402 -30%
-40%
2150 1042 -52%
-60%
Policy Bazaar Fino Paytm
Source: Inc42 Plus, NSE
Note: Current Price (LTP) is the closing stock price on 18th Jan. 2022
Most Active Indian Fintech Investors In 2021

No. Of Deals Notable Bets No. Of Deals Notable Bets
6 Indiagold, Jupiter, Open 5 Bimaplan, Defy, Stack Finance
15 Scripbox, Zolve, Uni 4 LoanKuber, Siply
13 ShopSe, M2P Fintech, BharatPe 5 BharatPe, Cred, Slicepay
13 inai, Khatabook, M2P Fintech 5 Fello, GalaxyCard, HomeCapital
5 Slicepay, Smallcase, Zolve 5 Leap Finance, Turtlemint
4 Indifi, Vayana Network 5 BharatX, LoanKuber, Siply
5 Cred, Refyne, Zolve 6 Acko, Bimape, Uni
4 Indifi, Niro 4 Cred, Pine Labs
9 Uni, Fampay, Zeni 8 Eduvanz Financing, Klub, SlicePay
5 GramCover, Indifi, M2P Fintech 7 M2P Fintech, Riskcovry, Indifi
4 Bimape, Grip Invest, inai 10 CoinSwitch, Cred, Fi, Groww

No. Of Deals Notable Bets
28 Razorpay, Smallcase, Khatabook, Jupiter
4 Stack Finance, Inai, Volopay
4 Clear, FloBiz, Zeni
17 Slice, Cred, BharatPe, Groww
7 Bimape, Bimaplan, Fleek
4 Akudo, App Jar, Khatabook
21 Vested Finance, HomeCapital, Junio
3 Dezerv, FloBiz
10 Karbon Card, Akudo, Bimaplan
Note: This is not a ranking, the organisation name is arranged in alphabetical order and only deals recorded in our dataset are taken into consideration.
BNPL In India: Sector Snapshot
Funded Startups 20+
Funding Raised To Date $590 Mn+
Key players
Key Investors
Market Size $43.3 Bn

Key BNPL Players In India

Maximum Credit Limit Maximum Credit Limit
Pay Later Upto 60K Upto 60K

What Is BNPL?
Upto 25 lakhs Upto 10 lakhs Buy now pay later
(BNPL) is an instant
N/A N/A micro-credit offered to
consumers to make
Pay Later Upto 70K Upto 20K retail purchases online
and offline.
Upto 1 lakh Upto 10 lakh
Upto 6 lakhs
Upto 30K
Upto 2 lakhs
Upto 25K
BNPL: Competitive Landscape In India

Registered NBFC Physical Card Maximum Credit Limit Select Lending Partners
Pay Later No No Upto 60K Capital Float
No No Upto 25 lakhs Muthoot Finance, Fullerton India, AEFPL
No No N/A N/A
Pay Later No No Upto 70K N/A
Yes No Upto 1 lakh PayU Finance India
No No Upto 30K Bajaj Finance, Aditya Birla, DMI Finance.
No No Upto 25K N/A

Registered NBFC Physical Card Maximum Credit Limit Select Lending Partners
No No Upto 60K Clix Capital
No Yes Upto 10 lakhs State Bank of Mauritius (SBM)
No No N/A N/A
No No Upto 20K N/A
No Yes Upto 10 lakh DMI Finance, Quadrillion Finance, Northern Arc Capital
No Yes Upto 6 lakhs RBL Bank, SBM Bank
No No Upto 2 lakhs Tata Capital, Catholic Syrian Bank (CSB), SBM

BNPL: Indian Startup Landscape

Total Funding Headquarters Notable Investors
$4.7 Mn Mumbai Pravega Ventures, Z5 Capital
$72 Mn Bengaluru Valar Ventures, Franklin Templeton, Green Visor Capital
$88.5 Mn Bengaluru Accel, General Catalyst, Lightspeed India
$118 Mn Bengaluru Alteria Capital, Quona Capital, PayU
Product of BharatPe Delhi NCR Sequoia Capital, Tiger Global, BEENEXT
Pay Later Product by Flipkart Bengaluru Walmart, SoftBank, GIC
Product by Paytm Delhi NCR SoftBank
Product by PayU The Netherlands PayU
$16 Mn Mumbai Pravega Ventures, Blue Ashva Capital, ICICI Bank
Product by MobiKwik Delhi NCR Sequoia Capital, InnoVen Capital, Trifecta Capital
$291 Mn Bengaluru Insight Partners, Tiger Global, Das Capital

BNPL Market Opportunity To Exceed $40 Bn By 2025

The share of BNPL-triggered payments in the digital commerce and mobile PoS space is expected to rise from 3-4% in 2021 to
21-22% by 2025
50.0
11x Growth
40.0
BNPL Market Size ($ Bn)
30.0
20.0
10.0
0.0
2021 2022 2023 2024 2025
Source: Inc42 Plus, Other Secondary Sources

Note: The total addressable market (TAM) for BNPL is calculated as the % penetration of the combined addressable market for digital commerce and mobile-pos payments
Key Insights: BNPL Market In India

Growth Drivers:
Physical Card + Digital

As BNPL startups like Slice, Uni Cards and others facilitate digital payments and physical cards, the merchant network in this space will grow beyond the realm of digital
commerce and reach the traditional retail point of sale.
Wide Credit Enabler Ecosystem

Most BNPL players in India are not registered lenders with the central bank. But that has not stopped them from emerging as account aggregators for existing banks and
NBFCs. Some notable lenders backing the BNPL format include Capital Float, DMI Finance, SBM and others.
High Investor Confidence

So far, several BNPL startups have been launched in India, and more than $590 Mn has been invested in the space. Notable growth and early stage investors such as Tiger
Global, Alteria Capital and ICICI Bank have already invested in at least one Indian BNPL company. The current boom also indicates multibagger exits from this sector.
Growing Consumer Internet Market

India is home to more than 834 Mn internet subscribers and 845 Mn+ smartphone users. High-speed internet and good-quality smartphones are also accessible in rural
India. Hence, rural internet subscribers have grown to 337 Mn in 2021, a 3.7x rise from 92 Mn in 2014.
Market Challenges:
Growing Competition
The addressable BNPL market in India is estimated to reach $43 Bn+ by 2025. As of now, the domestic market is already ruled by a plethora of tech giants such as Paytm
(Paytm Postpaid), Ola (Ola Money Postpaid), BharatPe (PostPe), Flipkart (Flipkart Pay Later) and others. With the competition getting more intense, it will result in higher
customer acquisition costs (CAC) in the coming years, hampering active players' profitability/operating efficiency.
Uncertain Regulatory Framework
The RBI working group is still finalising the regulatory framework for all digital lending operators in India. Also, the laws regarding financial data storage/sharing and
recurring payments have seen drastic changes, creating a bubble of regulatory uncertainty in the overall fintech market, including the digital lending space.
DIGITA (Digital India Trust Agency)
The RBI working group has proposed setting up a nodal agency called DIGITA to supervise all digital lending apps in India. The agency will also check and validate software
updates, patches and publisher certificate forgeries. Besides, DIGITA will issue basic digital guidelines that all digital lending companies must follow.
30 Early Stage Indian Fintech Startups Making Waves
Akudo Arthan Finance

Akudo provides a prepaid debit card for teens for online and offline Arthan Finance is a lending tech company providing loans to SMBs in
payments. This also helps young people manage their expenses and non-metro cities.
savings.
SUBSECTOR TOTAL FUNDING ($ MN) FOUNDING YEAR HQ SUBSECTOR TOTAL FUNDING ($ MN) FOUNDING YEAR HQ
Neobank $4 Mn 2020 Bengaluru Lendingtech $2.4 Mn 2018 Mumbai
NOTABLE INVESTORS NOTABLE INVESTORS
Y Combinator, JAFCO Asia, Incubate Fund India, AET Fund Michael & Susan Dell Foundation, Sunil Gulati, Ajit Ranade
Vested Bueno Finance

Vested Finance enables retail investors from India to buy US stocks and Bueno Finance is a neobank that offers digital lending solutions to
ETFs. It also claims to offer zero-brokerage, fractional ownership of US blue-collar workers in India and improves their credit history.
stocks.
Investmenttech $4 Mn 2018 Berkely, CA Lendingtech $3 Mn 2019 California
Moving Capital, Ovo Fund, TenOneTen Ventures, Inflection Point Ventures Goat Capital, JAM Fund, Olive Tree Capital, Good Water Capital, Kunal Shah
Clinikk Defy.club
Clinikk is an insurance tech startup that offers affordable 360-degree Defy Club is a cryptocurrency-focussed startup offering investment and
healthcare insurance packages. portfolio management services.
Insurancetech $4 Mn 2016 Bengaluru Investmenttech $6 Mn 2021 Bengaluru
MassMutual Ventures, Kunal Shah, Anjali Bansal, Rohit M.A. Michael & Susan Dell Foundation, Sunil Gulati, Ajit Ranade
DGV EduFund
DGV is a neobank that offers an array of banking services for dairy EduFund enables parents to plan/borrow/invest funds for future education
enterprises in India. expenses of their children.
Neobank $3 Mn 2019 Investmenttech/
Bengaluru $1.3 Mn 2020 Ahemdabad
Lendingtech
Info Edge Ventures, Omnivore Anchorage Capital Partners, ViewTrade Securities

Even Stack
Even is an insurance tech startup whose healthcare plan covers doctor Stack is an investment tech startup that offers DIY portfolio builders for
consultation and diagnostics. The plan covers a user’s medical expenses beginners in the stock market.
from day 1.
Insurancetech $5 Mn 2020 Bengaluru Investmenttech $5 Mn 2019 Bengaluru
Khosla Ventures, Founders Fund, Lachy Groom, Nikesh Arora, Kunal Shah Y Combinator, Harvard Management, Goodwater Capital, Soma Capital
Vital Gosats
Insurance tech startup Vital offers a healthcare plan that covers doctor GoStats is a rewards payment platform that enables users to earn bitcoin
consultation, diagnostics and pharmacy bills. when shopping online.
Insurancetech $3 Mn 2020 Delhi NCR Payments $700K 2020 Bengaluru
BLinC Invest, Venture Catalysts, Survam Partners Alphabit Fund, Fulgur Ventures, Stacks Accelerator, SBX Capital
HappyCredit Hypto
HappyCredit is a rewards payment platform that enables users to earn Hypto is a fintech SaaS startup that provides integrable APIs to facilitate
cashbacks/coupons on purchases made using credit cards or the UPI. financial services such as payment aggregation, lending and payment
collection.
Payments $670K 2019 Bengaluru Fintech SaaS $3 Mn 2018 Chennai
Goodwater Capital, MyAsiaVC, Kunal Shah Amrish Rau, Jitendra Gupta
Inai Ippopay
Inai is an Indian fintech SaaS startup that offers a no-code global payment Ippopay is a digital payment solution provider that offers payment
stack for accepting digital payments. aggregation and neobanking API stacks.
Fintech SaaS $4 Mn 2021 London Fintech SaaS $2.4 Mn 2020 Chennai
Paua Ventures, 9Unicorns, Uncommon Capital, Soma Capita Blume Ventures, Coinbase Ventures, Better Capital
Junio FEGO
Junio provides a prepaid debit card for teenagers to help with online and FEGO is a fintech SaaS startup which solves use cases across user/data
offline payments. It also helps teens manage their expenses and savings. connectivity, transactional intelligence and behavioural insights.
Neobank $3 Mn 2020 Delhi NCR Fintech SaaS $149K 2020 Chennai
Kunal Shah, Ashneer Grover,Amit Lakhotia Eximius Ventures, Speciale Invest, 3one4 Capital, First Cheque
Niro OneAssure
Niro provides embedded consumer lending solutions. Consumer businesses OneAssure is a full-stack digital health insurance platform.
can launch credit products by embedding Niro’s platform.
Lendigtech $4 Mn 2021 Bengaluru Insurancetech $675K 2019 Bengaluru
Elevar Equity, Kunal Shah, Nitin Gupta, Bala Parthasarathy Arun Venkatachalam, Amit Midha, Dalvir Suni
Pazcare Revfin
Pazcare offers insurance packages for employees. Revfin provides commercial EV loans to underserved segments, claiming to
rely less on numbers and more on a psychometric and biometric
assessment.
Insurancetech $4 Mn 2020 Bengaluru Lendingtech $4 Mn 2018 Delhi NCR
BEENEXT, 3One4 Capital, Kunal Shah, Zishaan Hayath, Ashneer Grover Dheeraj Jain, Let's Venture Angel Fund, Anuraag Jaipuria, Ruchirans Jaipuria
Rulezero Ruptok
Rule Zero is an all-in-one equity management platform for cap table Ruptok provides gold loan at one's doorstep at the lowest interest rate.
management and caters to startups and other businesses.
Fintech SaaS $4 Mn 2019 Bengaluru Lendingtech $5 Mn 2020 Delhi NCR
The Treasury,Valiant Capital,YourNest Venture Capital,Blume Founders Fund Manuvel Malabar Jewellers
Siply SSA Finserv

Siply is a micro-savings app, helping the underserved save and invest as SSA Finserv is a digital-first non-banking financial company that provides
low as INR 1. B2B loans.
Investmenttech $4 Mn 2020 Bengaluru Lendingtech $3 Mn 2019 Mumbai
LetsVenture, AngelList India, Founder Room Circle, Kunal Shah, Beerud Sheth Blue Ashva Capital
Threedots TradeX
threedots is an online social investing platform for stock market trading. It TradeX is a prediction market platform, enabling people to trade on
also features a forum for market insights and offers financial news updates. opinions across topics and get rewarded based on real-life outcome.
Investmenttech $4 Mn 2021 Bengaluru Investmenttech $946K 2021 Delhi NCR
Kalaari Capital, Better Capital, iSeed Soma Capital, TDV Partners, Rajesh Sawhney
Pantera Capital, Arrington XRP Capital, CMS Holdings, LedgerPrime
Transak WealthDesk
Transak is a fiat-to-crypto payment gateway that streamlines buying and WealthDesk allows users to invest in stock and ETF portfolios called the
selling of cryptocurrency, allowing mainstream users and businesses to WealthBaskets, created by SEBI-registered professionals.
access crypto and blockchain.
Fintech SaaS $3 Mn 2019 London Investmenttech $3 Mn 2016 Mumbai
Consensys, The Lao, IOSG, Lunex, Koji Capital Mathew Cyriac

India’s Fintech Unicorns
Cred Bengaluru Payments & Investment Tech

fastest Indian fintech startup to reach has the highest number of fintech subsectors have the highest fintech
$1 Bn+ valuation in just 30 months. unicorns in India. unicorns in India
$52 Bn+ $10 Bn+

Combined Valuation Of Indian Fintech Combined Funding Amount Of Indian
Startups Fintech Startups
Founded In Time Taken To Become Unicorn (Years) Headquarters Segments Valuation (In $ Bn)
2016 5 Mumbai Insurtech 1.1
2018 3 Delhi NCR Payments 2.9
2000 18 Mumbai Payments 2
2011 10 Chennai Fintech SaaS 1.4
2018 3 Mumbai Investment Tech 1.1
2017 4 Bengaluru Investment Tech 1.9
2018 3 Bengaluru Payments 2.2
2016 5 Bengaluru Insurtech 3.5
2016 5 Bengaluru Investment Tech 1

Founded In Time Taken To Become Unicorn (Years) Headquarters Segments Valuation (In $ Bn)
2015 6 Delhi NCR Lendingtech 1.5
1998 22 Delhi-NCR Payments 3.5
2008 10 Delhi NCR Insurtech 1.5
2014 6 Bengaluru Payments 3
2016 5 Bengaluru Lendingtech 1
2010 10 Bengaluru Investment Tech 2

Together, Payments & Investment Tech Account For 68% Of The Fintech
Unicorns In India
Fintech SaaS
5.3% 9 Payments
1
47.4%
Lendingtech
2
10.5% 19 Fintech
Unicorns
Insurtech
3
15.8%
Investment Tech
4
21.1%
India’s Fintech Soonicorns

Founded In Sub Sector Headquarters Total Funding (in $ Mn) Notable Investors
2008 Lending Chennai 115 Sequoia Capital India, Amazon Inc, Eight Roads Ventures India
2013 Lending Bengaluru 201 Amazon, Creation Investments Capital Management, Elevation Capital
2011 Fintech SaaS Bengaluru 140 Composite Capital Management, Elevation Capital, Founders Fund
2020 Fintech SaaS Chennai 91 Sequoia Capital India
2015 Lending Mumbai 260 Accel, Barclays Investment Bank, East West Bank
2019 Neobanking Bengaluru 75 B Capital Group, Hillhouse Capital Group, Ribbit Capital
2006 Payments Delhi NCR 58 Bharat Petroleum Corp, Blackstone, ICICI

2016 Lending Mumbai 254 Anshu Jain, Franklin Templeton India, Bhupinder Singh
2018 Investment Tech Delhi NCR 143 Dragoneer Investment Group, Steadview Capital, Tiger Global
2019 Neobanking Mumbai 157 Global Founders Capital, Hummingbird Ventures, Matrix Partners India
2018 Fintech SaaS Bengaluru 187 B Capital Group, Moore Strategic Ventures, Surge, Tribe Capital
2015 Lending Mumbai 48 Sicreva capital, Endiya Partners, VentureEast
2014 Lending Ahmedabad 257 India Quotient, FMO, Alteria Capital, Bertelsmann India Investments,
2011 Payments Mumbai 105 Matrix Partners India, Axis Bank, Falcon Edge Capital
2018 Lending Bengaluru 582 Gaja Capital, International Finance Corporation, Anand Rao, Shweta Mani
2019 Payments Pune 121 QED Investors, Oceanview Capital Partners, Sequoia Capital
2017 Neobanking Bengaluru 203 3One4 Capital, Amrish Rau, BEENEXT
2006 Fintech SaaS Mumbai 41 Kleiner Perkins, Lightbox, Mayfield Fund
2018 Investment Tech Bengaluru N/A Paytm, One97
2015 Lending Bengaluru 173 Accel, Sequoia Capital, GGV Capital
2011 Fintech SaaS Hyderabad 163 Spectrum Equity
2015 Lending Bengaluru 103 Alteria Capital, Goldman Sachs, PayU

Lending Tech In India Is likely To See Maximum Number Of Fintech

Unicorns
Investment Tech
9.1%
9
Lendingtech
2
40.9%
Neobanking
13.6% 22 Fintech
3
Soonicorns
Payments
13.6%
3 5 Fintech SaaS
22.7%
Emerging Trends: Fintech In India
Neobanking
Neobanks in India currently work as a layer2 fintech solution sitting on top of existing legacy banks. But with fintech firm BharatPe tying up with Centrum Finance (an NBFC) to
acquire PMC Bank and the UK-based fintech firm Revolut entering India, a full-fledged digital bank as an alternative to traditional banking may soon emerge in India
Investment Tech
As of 2019, only 3% of the Indian population participated in the national stock market compared to 55% in the US. In FY21, the estimated value of total equity in the Indian
stock market was $990 Bn, and the same is likely to increase 2.3x to $2.2 Tn in FY26. A combination of growing awareness and rising demand regarding financial securities
and a vast addressable market portray investment tech as a lucrative business opportunity in India.
Insurancetech
Among other fintech sub sectors, insurance tech is the fastest in terms of market size. From $87 Bn (2022) to $339 Bn (2025), the addressable market is estimated to surge
4x. The rapid adoption of non-life insurance covering health, education, vehicle and other areas will spearhead the growth of insurtech for the next three years
Fintech SaaS
The Covid-19 pandemic has accelerated the adoption of digital financial products and services among India's SMBs, driving the demand for fintech SaaS solutions such as
app-based accounting & bookkeeping, no-code payment aggregation and equity cap table management. The market size for fintech SaaS in India is expected to see a 2.7x
surge in the next three years, from $4.6 Bn in 2022 to $12.6 Bn in 2025.
Market Consolidation
Many established fintech startups in India are eyeing IPOs this year, including MobiKwik, Navi Technologies and Pine Labs. Understandably, the greater a company's market
share, the better the chance of a successful IPO, which helps raise investor confidence. In fact, a substantial market share is one of the critical indicators that analysts use
to determine a company's competitive position. Hence, a rush of M&A deals is on the cards. Moreover, the requirement of full-stack solutions to capture potential customers
and new markets at the earliest will also send these top players on a shopping spree.
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Inc42's State of Indian Fintech Report Q1 2022

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Table Of Contents 12 INDIA’S FINTECH ECOSYSTEM: FUNDING TRENDS

Funding Growth Over The Years

Average Ticket Size

3 EXECUTIVE SUMMARY Sectors With Maximum Funding

5 INDIA’S STARTUP ECONOMY: A SNAPSHOT Mergers & Acquisitions

6 FINTECH IN INDIA: A SNAPSHOT 23 FINTECH STARTUPS ON THE IPO LADDER

Segment-Wise Market Size (2021-2025) 42 INDIA’S FINTECH UNICORNS & SOONICORNS

Fastest Growing Fintech Subsector In

The Rise Of India’s Digital Economy

750 718 503 Sept 2021

391 $0.68 4.7 Hours 305 Mn

112 115 132 73 Bn $1.7 Tn 337 Mn+

Fintech Startups That Bagged Biggest Funding Rounds In 2021

Payments Late Stage 985 Fidelity, Invesco, Baron Capital

Crypto Exchange Late Stage 300 Andreessen Horowitz, Coinbase Ventures

Payments Late Stage 250 SoftBank, Sodexo

Subsector Funding Stage Funding Amount ($ Mn) Notable Participating Investors

Lendingtech Growth Stage 215 Barclays, Accel, Sequoia Capital

Fintech SaaS Growth Stage 159 Spectrum Equity

Source: Inc42 Pus

Notable Fintech Acquisitions In 2021

Investment Tech Seed Stage Y Combinator, Soma Capital

Neo-Bank Seed Stage Unicorn India Ventures, PointOne Capital

Fintech SaaS Growth Stage Sequoia Capital, Prime Venture Partners

Fintech SaaS Bootstrapped N/A

Paymnets Late Stage ICICI Ventures, iLabs

Co-operative Bank N/A N/A

Fintech SaaS Growth Stage Vertex Ventures, Prime Venture Partners

Investment Tech Subsidary GAIN Credit

Investment Tech Seed Stage NuVentures, Aravind MJ

Fintech SaaS Seed Stage Y Combinator, Daniel Schryer

India’s Fintech Startup Landscape: Who’s Who In Subsectors

India To Reach A Trillion-Dollar Fintech Market In 2025

Insurance Tech Is The Fastest Growing Fintech Segment In India

0% 20% 40% 60%

87 (14.9%) 208 (16.0%)

$584 Bn 270 (46.2%)

165 (28.3%) 339 (26.1%)

Lendingtech Payments Insurtech Neobanking Lendingtech Insurtech Payments Neobanking

Source: Inc42 Plus. Multiple Secondary Sources

$8 Bn Raised Across 280 Fintech Funding Deals In 2021

2014 2015 2016 2017 2018 2019 2020 2021

Source: Inc42 Plus

Average Ticket Size Of Fintech Investments Hit Record High In 2021

Source: Inc42 Plus

Digital Payment Startups Received Maximum Funding In 2021

Investment Tech Lendingtech

Source: Inc42 Plus

Most Favoured Fintech Segment In 2021

Growth Stage Funding In Fintech Surged 5x In 2021

Fintech Funding Deals Across All Stages Doubled In 2021

Top Startup Hubs For Fintech Funding In 2021

Indian Fintech Startups Recorded The Highest Number Of M&As In 2021

As digital payment companies and neobanks required full-stack fintech solutions,

Indian Fintech Startups: Listed & Potential IPO In 2022

Mumbai Listed $464 Mn

Delhi NCR 2022 $1 Bn

Bengaluru 2022 $650 Mn

Delhi NCR Listed $8.7 Bn

Delhi NCR 2022 $5 to $7 Bn

Delhi NCR Listed $5.6 Bn

Source: Inc42 Plus, NSE