DIGITAL & TRENDS

Fintech in India
 Table of Contents

01 Global overview 04 Key players

Number of new fintech unicorns worldwide 2021, by country 03 Leading fintech unicorn startups India H1 FY 2022, by value 21
VC funding in fintech startups worldwide 2021, by country 04 Total volume of UPI-transactions from Paytm Payments Bank India 2020-2021 22
Largest fintech companies worldwide 2021, by market cap 05 Number of P2P transactions using PhonePe from March 2020-March 2021 23
Revenue of MobiKwik FY 2017-2022 24
02 Fintech in India Net profit of Lendingkart in India FY 2019-2021 25

Share of start-up funding value in India 2021, by sector 07

Revenue of fintech market in India 2021 and 2030, by segment 08
Top funded FinTech firms in India 2021, by segment 09
Share of payment systems India FY 2022 10
Number of P2P-NBFCs India 2022, by city 11
Value of equity funding in insturtech India 2016-2021 12

03 Investments
PE/VC investment deals in finance services sector in India 2015-2021 14
Number of investments in fintech in India 2018-H1 2022, by deal count 15
PE/VC investments in fintech India 2013-2021 16
Value of M&A deals in the Fintech sector 2016-2021 17
Number of PE/VC investments in financial services India 2020-2021, by sub-sector 18
PE/VC investment deals in the Fintech sector India 2013-2021 19

1
CHAPTER 01

Global overview
 Number of new fintech unicorns worldwide in 2021, by country
Number of new fintech unicorns worldwide 2021, by country

Number of new unicorns

0 20 40 60 80 100 120

United States 101

United Kingdom 16

India 12

Canada 8

France 6

Germany 4

Brazil 4

Indonesia 3

Netherlands 3

Sweden 2

Singapore 2

China 2

3 Description: The country with the highest number of new fintech unicorns worldwide in 2021 was the United States, with a total of 101 new unicorns. The United Kingdom and India followed, with 16 and 12 new fintech unicorns, respectively. Read more
Note(s): Worldwide; 2021
Source(s): Dealroom.co
 VC funding in fintech startups worldwide in 2021, by country (in billion U.S.
dollars)
VC funding in fintech startups worldwide 2021, by country

VC funding in billion U.S. dollars

0 10 20 30 40 50 60

United States 55

United Kingdom 13

India 9.3

Germany 4.2

Canada 4.2

Brazil 3.8

Singapore 2.6

France 2.4

Sweden 2.1

China 2

Netherlands 1.8

Indonesia 1.4

4 Description: The highest VC funding in fintech startups worldwide in 2021 was in the United States, reaching 55 billion U.S. dollars. The United Kingdom followed, with a VC funding value of 13 billion U.S. dollars. Read more
Note(s): Worldwide; 2021
Source(s): Dealroom.co
 Market capitalization of largest fintech companies worldwide in 2021 (in
billion U.S. dollars)
Largest fintech companies worldwide 2021, by market cap

Market capitalization in billion U.S. dollars

0 50 100 150 200 250 300 350 400 450 500 550

Visa (United States) 477.95

Mastercard (United States) 367.84

Ant Financial (China) 312

Tencent (China) 238.12

Intuit (United States) 156.94

Paypal (United States) 140.1

Stripe (Ireland) 95

Fiserv (United States) 65.72

Adyen (Netherlands) 65.21

Square (United States) 58.78

Klarna (Sweden) 45.6

Coinbase (United States) 44.92

Nubank (Brazil) 41.5

Checkout.com (United Kingdom) 40

Grab (Singapore) 39.6

5 Description: Fintech companies headquartered in the United States and China lead the ranking of largest fintech companies worldwide by market capitalization. In 2021, the largest two were the payment companies Visa and Mastercard, both headquartered in the
United States, with a market capitalization of almost 478 billion and 368 billion U.S. dollars, respectively. Chinese Ant Financial, or Ant Group, ranked third with a market capitalization of 312 billion U.S. dollars. European headquartered [...] Read more
Note(s): Worldwide; 2021 ; The source used various sources to get to this ranking, with numbers sometimes stemming from different dates. The source admits a ranking like this "has its limitations".
Source(s): Google (Google Finance); Various sources (Company reports)
CHAPTER 02

Fintech in India
 Share of start-up funding value in India in 2021, by sector
Share of start-up funding value in India 2021, by sector

Share of funding
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Edtech 15.24%

Fintech 13.36%

D2C 4.72%

SaaS 4.34%

Foodtech 4.07%

E-commerce 3.38%

Logistics 3.3%

Social commerce 2.93%

Healthtech 2.6%

EV 1.61%

Insurance 1.39%

E-commerce roll up 1.38%

Agritech 1.21%

Crypto 1.06%

Gaming 1.04%

7 Description: In 2021, Indian Edtech startups received around 15 percent of the total funding amount. Together with around 13 percent for Fintech startups, these two segments received nearly 30 percent of the total funding during that time period. Read more
Note(s): India; 2021
Source(s): Entrackr
 Revenue of fintech market in India in 2021, with projection for 2030, by
segment (in billion U.S. dollars)
Revenue of fintech market in India 2021 and 2030, by segment

2021 2030
120
105

100
Revenue in billion U.S. dollars

80

60 54

40 36

20
8 8
3 2.37 2.2
0.2 0.4
0
Lending Payments Insurtech Wealth tech Neo-banking

8 Description: In the year 2021, the lending sector of fintech market in India earned a total revenue of eight billion U.S. dollars. This was projected to rise to 105 million dollars in the year 2030. The fintech market in India was undergoing expansion and expected to grow
multiple folds in the next decade. Read more
Note(s): India; 2021
Source(s): Chiratae Ventures; EY
 Funding distribution of FinTech companies in India in 2021, by segment
Top funded FinTech firms in India 2021, by segment

Share of companies
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Payments 44.4%

Lending 15.7%

Wealth Tech 6.4%

Insur Tech 8.4%

Neo-banking 8.6%

Blockchain and Cryptocurency 5.4%

Others 11%

9 Description: In 2021, around payments was the most funded fintech segment with 44 percent share in the sector. It was followed by lending Fin Techs with around 16 percent. Read more
Note(s): India; as of June 2022
Source(s): EY; FCC; PCI; Tracxn Technologies
 Share of payment systems across India in financial year 2022, by volume
Share of payment systems India FY 2022

Share of payment systems volume

0% 10% 20% 30% 40% 50% 60%

BHIM UPI 52%

PPI 7.44%

NACH 4.34%

IMPS 5.27%

NEFT 4.57%

Internet banking 4.41%

Credit card 2.53%

NETC 2.76%

AEPS 1.39%

Mobile banking 1.62%

Closed loop wallet 0.41%

RTGS 0.24%

BHIM Aadhaar 0.03%

USSD 0%

Debit card 4.47%

10 Description: In financial year 2022, the share of Bharat Interface for Money app that uses Unified Payments Interface (BHIM UPI) was the highest compared to other payment systems in India at over 50 percent. UPI is an instant real-time payment system developed by
the National Payments Corporation of India and facilitates inter-bank transactions. Read more
Note(s): India; FY 2022
Source(s): MeitY (India); NPCI; Reserve Bank of India; Various sources (banks)
 Number of peer-to-peer non-banking financial companies (NBFC-P2P) in
India as of January 2022, by city
Number of P2P-NBFCs India 2022, by city

Number of companies
0 2 4 6 8 10 12

Mumbai 11

Hyderabad 4

Bengaluru 4
City

New Delhi 3

Kanpur 1

Chennai 1

11 Description: As of January 2022, the Reserve Bank of India (RBI) had registered 25 non-banking financial companies (NBFC) to run peer-to-peer (P2P) lending platforms. Hosting nine such companies, Mumbai was the P2P-hub of India that year. Read more
Note(s): India; as of January, 2022
Source(s): Reserve Bank of India
 Amount of equity funding in insurtech in India from 2016 to 2021 (in
million U.S. dollars)
Value of equity funding in insturtech India 2016-2021

900
800
800

700
Funding in million US dollars

600

500

400 380
340
290
300

200 150

100
10
0
2016 2017 2018 2019 2020 2021

12 Description: As of 2021, insurtech companies in India received 800 million U.S. dollars in equity funding. The funding has almost doubled in the last two years. Read more
Note(s): India; 2016 to 2021
Source(s): BCG
CHAPTER 03

Investments
 Private equity and venture capital investments deals in the finance
services sector across India from 2015 to 2021
PE/VC investment deals in finance services sector in India 2015-2021

300

250 239

194
200
Number of deals

159
150 140

109
100
73 74

50

0
2015 2016 2017 2018 2019 2020 2021

14 Description: In 2021, India's financial services sector saw 239 private equity and venture capital deals. The number of deals increased compared to the previous year and the financial services sector remains to be a key sector of interest for investors. Read more
Note(s): India; 2015 to 2021
Source(s): EY; VCCEdge
 Number of investments in fintech in India from 2018 to first half of 2022,
by deal count
Number of investments in fintech in India 2018-H1 2022, by deal count

500 474

450
415
400
360
350
Number of investments

300
300

250 224

200

150

100

50

0
2019 2018 2020 2021 2022*

15 Description: As of the first half of 2022, the number of investment deals in the Indian fintech industry were 224. The number of deals increased since 2018 until the year 2020 which saw a dip in investments. However, 2021 experienced a recovery with 474 investment
deals. Read more
Note(s): India; 2018 to 2022; *H1 2022
Source(s): FinTech Global
 Private equity and venture capital investments in the fintech sector in
India from 2013 to 2021 (in million U.S. dollars)
PE/VC investments in fintech India 2013-2021

10,000
9,015
9,000

8,000
Value in million U.S. dollars

7,000

6,000

5,000

4,000

3,000

2,000
1,391
982
1,000 439.2 251.9 347.7
6.1 52.3 83.6
0
2013 2014 2015 2016 2017 2018 2019 2020 2021

16 Description: The fintech sector in India secured private equity and venture capital investments of over nine billion U.S. dollars with about 122 deals in 2021. This was a significant increase from the previous year's value. Read more
Note(s): India; 2013 to 2021
Source(s): EY; Reuters; Venture Intelligence
 Value of mergers and acquisition deals in the Fintech sector in India from
2016 to 2021 (in million U.S. dollars)
Value of M&A deals in the Fintech sector 2016-2021

300

250 242
Value in million U.S. dollars

200 185

150

100

45.9
50 36.4
15
0
0
2016 2017 2018 2019 2020 2021

17 Description: In 2021, mergers and acquisitions or strategic investments in the Fintech sector in India were worth around 242 million U.S. dollars. Majority of this investment of about 122 million U.S. dollars was made by Swiss Re on Paytm Insurtech that year. Read
more
Note(s): India; 2016 to 2021
Source(s): EY; Reuters; Venture Intelligence
 Number of private equity and venture capital investments in financial
services across India in 2020 and 2021, by sub-sector
Number of PE/VC investments in financial services India 2020-2021, by sub-sector

Number of deals

2021 2020

0 20 40 60 80 100 120 140 160 180

159
FinTech
89
19
NBFC
29
15
Micro finance
6
13
HFC
5
12
Insurance
6
11
Others*
5
8
Asset management
2
5
Banks
15

18 Description: In 2021, India's financial services sector saw over 239 private equity and venture capital deals aggregating to more than 11 billion U.S. dollars. Around 156 of these deals were secured by FinTech companies that year. Read more
Note(s): India; 2020 and 2021; *Others includes exchanges, brokerages, advisory services etc. Read more
Source(s): EY; VCCEdge
 Number of private equity and venture capital deals in the Fintech sector in
India from 2013 to 2021
PE/VC investment deals in the Fintech sector India 2013-2021

140

122
120

100
Number of deals

80
68
63
60

40
26
23
19
20
11
6
3
0
2013 2014 2015 2016 2017 2018 2019 2020 2021

19 Description: In 2021, the Fintech sector in India recorded about 122 private equity and venture capital investment deals. Fintech sector had the highest investment deal value that year of about nine billion U.S. dollars. Read more
Note(s): India; 2013 to 2021
Source(s): EY; Reuters; Venture Intelligence
CHAPTER 04

Key players
 Leading fintech unicorn startups in first half of financial year 2022, by
value (in billion U.S. dollars)
Leading fintech unicorn startups India H1 FY 2022, by value

Value in billion U.S. dollars

0 2 4 6 8 10 12 14 16 18

Paytm 16
PhonePe 5.5
BillDesk 4.7
CRED 4
PolicyBazaar 3.5
Digit Insurance 3.5
Pine Labs 3
RazorPay 3
Groww 3
Bharat Pe 2.9
Coinswitch 1.9
Zeta 1.5
CoinDCX 1.1

21 Description: Paytm, the UPI based fintech unicorn company was valued at over 16 billion U.S. dollars as of first half of financial year 2022 in India. Furthermore, Coinswitch, the crypto startup was valued at over 1.9 billion dollars in that time period. Read more
Note(s): India; as of H1 FY 2022
Source(s): California Life Sciences; Times of India
 Total volume of UPI-transactions from Paytm Payments Bank in India from
January 2020 to February 2021 (in millions)
Total volume of UPI-transactions from Paytm Payments Bank India 2020-2021

180 169.25

160 149.32
147.56 145.61
138.93
Volume of transactions in millions

140 132.54

120 115.52
111.45
103.11 100.93 97.69
100
84.36
80 74.64
68.72

60

40

20

0
January February March April 2020 May 2020 June 2020 July 2020 August September October November December January February
2020 2020 2020 2020 2020 2020 2020 2020 2021 2021

22 Description: In February 2021, the Paytm Payments Bank acted as the remitter bank for nearly 150 million UPI-transactions in India. This figure fluctuated over the last one year. The Paytm Payments Bank is one of the new payments banks in India licensed in 2015.
They provide mainly online and mobile payment services and cannot issue credit or loans cards. Read more
Note(s): India; January 2020 to February 2021
Source(s): NPCI
 Number of peer to peer (P2P) transactions using PhonePe from March
2020 to March 2021
Number of P2P transactions using PhonePe from March 2020-March 2021

600
546

500
454 447
417 427
Number of P2P transactions

406
400
337

284 296
300
244
211 220
200 168

100

0
March 2020 April 2020 May 2020 June 2020 July 2020 August September October November December January February March 2021
2020 2020 2020 2020 2020 2021 2021

23 Description: PhonePe is an Indian digital payment service. In March 2021, PhonePe's peer to peer transactions were 546 million. An increase was observed as compared to last year where the number of peer to peer transactions were 211 million. Read more
Note(s): India; March 2020 to March 2021
Source(s): PhonePe
 Revenue of MobiKwik between financial year 2017 and 2022 (in million
Indian rupees)
Revenue of MobiKwik FY 2017-2022

6,000
5,432.19

5,000
Revenue in million Indian rupees

4,000 3,698

3,023
3,000

2,000
1,620

1,000 860
450

0
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

24 Description: The revenue of MobiKwik reached 5.4 billion Indian rupees in fiscal year 2021. This was a significant decrease compared to the previous year. MobiKwik is an Indian-based digital wallet company founded in 2009. Read more
Note(s): India; FY 2017 to FY 2022; consolidated figures
Source(s): MobiKwik
 Net profit of Lendingkart in India in financial year 2019 and 2021 (in
million Indian rupees)
Net profit of Lendingkart in India FY 2019-2021

350

296.91
300
277.2
Net profit in million Indian rupees

250

200 183.19

150

100

50

0
FY 2019 FY 2020 FY 2021

25 Description: In financial year 2021, Indian digital lending company Lendingkart Finance Limited reported a net profit of around 180 billion Indian rupees. This was a decrease compared to the previous year. The Ahmedabad-based NBFC (non-banking financial
company) disbursed loans primarily for small and medium-sized enterprises worth nearly 39 billion rupees that year. Read more
Note(s): India; FY 2019 and FY 2021
Source(s): Website (lendingkart.com)
 Sources

BCG Venture Intelligence

California Life Sciences Website (lendingkart.com)
Centre for Finance, Technology and Entrepreneurship
Chiratae Ventures
Dealroom.co
Entrackr
EY
FCC
FinTech Global
Google (Google Finance)
MeitY (India)
MobiKwik
NPCI
PCI
PhonePe
Reserve Bank of India
Reuters
Times of India
Tracxn Technologies
Various sources (banks)
Various sources (Company reports)
VCCEdge

26