New Delhi, March 13 (SocialNews.XYZ) The Federation of Indian Chambers of Commerce & Industry (FICCI) and Boston Consulting Group (BCG) on Saturday unveiled 'India FinTech: A USD 100 Billion Opportunity' report. The report details the findings from the study that BCG and FICCI undertook to size the value-creation potential and identify imperatives for India's FinTech growth.
Dilip Chenoy, Secretary General, FICCI said, "The FinTech industry in India has been growing at a fast clip. FinTech players are redefining the business models across different segments of financial services industry, helping improve service delivery and contributing to digital financial inclusion. This is a clear area of focus for us in FICCI and through our multiple initiatives, we will continue to promote this industry both in India and abroad."
India's dynamic FinTech industry has 2100+ FinTechs of which 67% have been set up over the last 5 years alone. The total valuation of the industry is estimated at $50-$60 billion. The industry's growth has been undeterred by the pandemic, as it has seen the emergence of 3 new Unicorns and 5 new Soonicorns (USD 500Mn+ valuation) since January 2020.
The Fintech industry's strong growth is due to India's deep-rooted customer demand, diverse capital flows, strong tech talent and enabling policy framework. Over the next 5 years, India's FinTech industry is expected to continue its strong upward trajectory.
Prateek Roongta, Managing Director and Partner, Boston Consulting Group India said, "We believe India's FinTechs are at the precipice of significant value-creation of USD 100 billion over the next five years. To actualize this potential, the industry would require investments to the tune of USD 20-25 billion till 2025. Consequently, the number of Indian FinTech Unicorns will more than double over the next few years."
Ruchin Goyal, Managing Director & Senior Partner, Boston Consulting Group India said, "The landscape will be defined by FinTechs that pursue their strategic play with deep, relentless discipline. Tomorrow's FinTech winners are expected to 'master the core' -- by innovating on product, user-experience or through deep-tech capabilities. India will also see the emergence of ecosystem orchestrators and multinational FinTechs, as it evolves into a global FinTech powerhouse."
Another theme covered in this report is internationalization of Indian FinTechs. To develop a close understanding of the FinTech industry's multinational ambitions, BCG and FICCI conducted the BCG-FICCI FinTech survey 2021. The survey reveals that 39% of Indian FinTechs surveyed have a presence outside India and 73% of FinTechs surveyed are actively considering international expansion opportunities. South-East Asia was the most sought-after destination for international expansion, followed by North America.
Several Indian FinTechs are well-positioned to establish a global footprint owing to their transplantable business models and proven track record of success. To ensure that Indian FinTechs achieve their potential, all stakeholders -- FinTechs, Financial Institutions and policymakers -- have a role to play. The imperatives for stakeholders have been identified in the report.
Source: IANS
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