India’s fintech sector grows fivefold in three years with rise the of Decacorn, Unicorns, and Minicorns: Report

India rises to global fintech powerhouse with 26 Unicorns and rapid growth in startups

According to a report by JM Financial, India’s financial sector is growing at a rapid pace as fintech startups have grown by about five times in the past three years. The growth has been from 2,100 in 2021 to 10,500 in 2024.

The report says, “At present time, India has 26 fintech unicorns with an estimated combined market value of $90 billion.”

India’s fintech landscape continues to flourish, boasting one decacorn fintech company valued at over $10 billion, 25 unicorns with valuations ranging from $1 billion to $10 billion, and 37 minicorns valued between $100 million and $1 billion. Additionally, there are 87 soonicorn fintech startups, with valuations between $60 million and $100 million.

According to the latest report by Boston Consulting Group (BCG) and Z47 (formerly Matrix Partners India), the total estimated value of all fintech companies in India is approximately $125 billion. For the fiscal year 2023, these companies collectively earned around $20 billion, accounting for 5 percent of the total revenue generated by the country’s banking, financial services, and insurance (BFSI) sectors.

The report highlights that payment and lending companies dominate the fintech sector, with these segments securing 85 percent of the total funding raised. Between 2014 and 2023, Indian fintech startups attracted about $28 billion through 1,486 deals.

JM Financial’s report anticipates significant growth in the sector, projecting 150 fintech unicorns and a $200 billion revenue milestone by 2030, driven by rising consumption, increased market penetration, and advancements in artificial intelligence (AI).

The Indian fintech ecosystem, which includes diverse segments such as merchant payments, digital wallets, consumer payments, loans, insurance, and wealth management, is described as being in its “middle journey.” The report underscores that the sector is poised for exponential growth, drawing parallels with the substantial value created by incumbents over the past 3-5 decades.

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