The FinTech Startup Ecosystem

FinTech sector has seen explosive growth in India and has turned India into a leading FinTech startup
ecosystem in the world. The sector could be boosted further through interventions by the State
Governments and UT Administrations. Here are some sector insights,

FinTech Sector Snapshot

3,100+ startups recognized by DPIIT in the FinTech
sector. 43% of these startups have at least 1 woman
director.
The maximum number of startups are in the
Validation stage (35%), followed by Early-Traction
and Ideation stages.
India is the 3rd largest fintech ecosystem and
ranked 1st for real-time payment startups globally.
UPI recorded the highest-ever volume of
transactions in April 2023 of 8.8 Bn.
Indian FinTech industry’s market size was $ 50 Bn
in 2021 and is estimated at ~$ 150 Bn by 2025.

There has been a 42% increase in the number of
FinTech startups that are DPIIT recognised in FY
2022-23 as compared to FY 2021-22.
The top states with FinTech solutions are
Maharashtra, Karnataka, Delhi, Uttar Pradesh, and
Gujarat.
The startups are spread across 36 states and UTs,
creating 38,400+ jobs. 33% of the FinTech startups
belong to Tier 2 and 3 cities in India.
A few Fintech unicorns in India include Paytm,
CoinSwitch Kuber, Zerodha, Groww, Cred, etc.
Indian fintechs were the 2nd most funded startup
sector in India in 2022.
India has the highest global FinTech adoption rate
at 87% compared to the global average of 64%
The total number of unique institutional investors
in Indian fintech almost doubled between 2021 and
2022, rising from 535 to 1019 respectively.
Regulatory initiatives include India Stack, JAM
Trinity, Financial Inclusion Initiatives,
introduction of UPI123Pay and UPI Lite, RBI
Payments Vision 2025, etc.

To further promote and support the fintech sector, Indian State governments and UT
Administrations may focus on these areas

Invest in Skill Sector Focused Regulatory International Financial Inclusion

Infratructure Development Incentives Clarity Collaborations Initiatives

Examples of Best Practices

Maharashtra Karnataka Gujarat

First state in India to create a Fintech Out of 23 fintech unicorns, 12 are from Bengaluru. The state GIFT City is joint initiative of the GOI and the
policy to support the sector with a vision government plans to set up a centre of excellence for fintech startups Government of Gujarat focused on developing
to make Mumbai a Global Fintech Hub. & actively working to create a Fintech Regulatory Support framework. India's financial services and fintech ecosystem.

The Indian fintech startup ecosystem is poised for remarkable growth, driven by innovation, investments, and supportive policies. With the right
strategies and government backing, India can continue to lead the fintech revolution, benefiting both businesses and consumers alike.

Startup India