Fintech Startups Saw 500% Growth In Last 10 Years, Raised Over $31 Bn Funding: PM Modi

SUMMARY

Indian fintech startups witnessed a staggering 500% growth in the last 10 years, with the homegrown fintech ecosystem attracting investments of more than $31 Bn, PM Modi said

In its bid to boost the fintech sector, the Centre is making all necessary changes at the policy level, the PM said, citing examples like the abolition of Angel Tax and implementation of the Digital Personal Data Protection Act

India's fast-growing fintech market is expected to become a $2.1 Tn opportunity by 2030, according to Inc42 data

Indian fintech startups witnessed a staggering 500% growth in the last 10 years, with the homegrown fintech ecosystem attracting investments of more than $31 Bn, Prime Minister Narendra Modi said today (August 30).

Addressing the Global Fintech Fest 2024, PM Modi said, “In the last 10 years, the (fintech) industry has received a record investment of more than 31 Bn along with witnessing a startup growth of 500%.”

The Prime Minister also hailed India’s Unified Payments Interface (UPI), saying it is a great example of India’s fintech success, with the country now accounting for more than half of the global digital transactions.

“Services such as remote healthcare services, digital education and skill learning would not be possible without fintech. India’s fintech revolution is playing a big role in improving the dignity of life and quality of life,” PM Modi said.

While the world is facing the “dangers of a parallel economy,” the Indian fintech ecosystem has played a crucial role in “denting such a system” and introduced transparency, he added.

In its bid to boost the fintech sector, the Centre is making all necessary changes at the policy level, the PM said, citing examples like the abolition of Angel Tax, implementation of the Digital Personal Data Protection Act, along with a $1 Bn funding to encourage research & development in the space.

Additionally, the Centre is working on advanced technologies and regulatory frameworks to strengthen financial markets, the Prime Minister said.

With cyber fraud cases on the rise in the country, Modi urged the regulators to boost digital literacy to ensure cyber fraud does not inhibit the growth of the homegrown fintech ecosystem.

“I am confident that India’s Fintech ecosystem will enhance the ease of living of the entire world. Our best is yet to come”, Modi said.

The Prime Minister’s remarks come at a time when the country’s fintech market continues to grow at a rapid pace. According to Inc42 data, India has over 24 fintech unicorns, and 36 soonicorns.

These startups are trying to grab a pie of the country’s fast-growing fintech market which is expected to become a $2.1 Tn opportunity by 2030.

The Economic Survey 2023-24 also said that India aims to become a “fintech nation” by piggybacking on the country’s digital public infrastructure (DPI).