Tamil Nadu CM Inaugurates Fintech City & Tower To Push Growth In The State

Chief Minister MK Stalin, on Saturday (June 17), laid the foundation stone for the development of Fintech City and Fintech Tower in Nandambakkam, Tamil Nadu. The state government allocated INR 116 Cr and INR 254 Cr respectively for the projects. 

The government expects the Fintech City to attract an investment of about INR 12,000 Cr and create employment opportunities for 80,000 people. Meanwhile, the Fintech Tower will cover 5.6 Lakh sq ft and is designed to attract INR 1,000 Cr investments and offer jobs for 7,000 people.

According to a Times of India report, Stalin said that the two will offer growth opportunities for the fintech and related sectors. 

Further, the government has announced incentives for the companies investing more than INR 50 Cr in Tamil Nadu.

With an aim to invite fintech investors and business to the state, Stalin addressed the event saying that a new policy titled Fintech Policy 2021 has been framed by the government to make Tamil Nadu a fintech hub by 2025.

For the project, a total of 56 acres of land has been allotted to offer state-of-the-art infrastructure facilities to all the international and national BFSI and fintech businesses. 

The CM also showed confidence that the fintech sector will bring prosperity to the state and pave the way for further development with an integration of both traditional banking and non banking services, and technology.

He said that the online banking system has grown manifold which saw a push during the pandemic. According to him, the fintech businesses operating out of the state are a testimony to Tamil Nadu’s growth in the fintech sector. 

The Indian fintech market has seen rapid changes and growth in a short span. According to Inc42’s State Of Indian Fintech Report Q1 2023, the market opportunity for the Indian fintech ecosystem is $2.1 Tn by 2030. 

To nudge the fintech sector further in the country, earlier this month, RBI released default loss guarantee (DLG) guidelines for the digital lending players, which are expected to boost the fintech players in the country.

Recently, Australian fintech business Pepper Group announced an investment of $150 Mn over next four years to establish a fintech startup in India named Pepper Money. 

In another instance, lending tech startup Indifi Technologies has raised $35 Mn led by funds managed and advised by ICICI Venture.