State Of Indian Fintech Report Q1 2023

The total addressable market for fintech in India is expected to reach $2.1 Tn by 2030, with a compound annual growth rate (CAGR) of 18% from 2022. Since 2014, the sector has attracted more than $25.8 Bn in investments, minting 22 unicorns and 33 soonicorns in the process.

With the onset of a funding winter in 2022, the fintech sector has been hit hard, and both deal value and deal count declined by 40% and 13.5% YoY, respectively. But despite these challenges, the future of fintech in India looks promising.

This report provides an overview of the current state of the fintech sector while focussing on the startups driving innovation and growth. In particular, it highlights India’s rapidly growing B2B lending market, set to disrupt traditional lending models and transform the financial landscape.

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State Of Indian Fintech Report Q1 2023

Quoted & Trusted By

the economist
business insider
cb insights
the huffington post
the economic times
live mint
the times of india

Key Highlights

$2.1 Tn

Estimated Fintech Market Opportunity By 2030

63 Mn

Total Number Of SMBs In India

$2.8 Bn

Total Funding Into B2B Lending Startups (2014-2022)

$4.8 Bn

Total Funding Into Fintech Sector In 2022

Table Of Contents

  • India’s Digital Economy In A Nutshell
  • India’s Fintech Landscape: Key Players
  • India’s Fintech Market Opportunity & Growth Drivers
  • India Vs China Vs The US: A Comparison Of Fintech Startup Ecosystems
  • Fintech Funding Trends YoY (2014-2022)
  • Fintech Funding Trends QoQ (Q1 2022-Q1 2023)
  • Median Ticket Size QoQ (Q1 2022-Q1 2023)
  • Fintech M&A Trends YoY (2015- Q1 2022)
  • Top Fintech Sub-Sectors In 2022
  • Top Fintech Startup Hubs In 2022
  • Notable Fintech Startup Investors In 2022
  • InFocus: B2B Lending Solving The SMB Credit Crunch
  • B2B Lending In India: Market Opportunity & Growth Drivers In SMB Lending
  • How India Stacks Up Against The US & China In SMB Lending:
  • B2B Lending Value Chain: How The Credit Flow Works In India
  • Funding Overview Of B2B & Consumer Lending (2014-2022)
  • Lendingtech Funding Trends QoQ (2014-2022)
  • B2B Lending Type Split: Funding Trends (2014-2022)
  • Stage-Wise Funding Trends In B2B Lending (2014-2022)
  • Financials, Comparative Analysis Of Top 10 Funded Startups In B2B Lending
  • Key Challenges Of Fintech In India


In spite of a 40% fall in funding and a 13.5% drop in deal count YoY in 2022, the fintech sector in India is poised to grow due to the rapid adoption of digital technologies, ease of doing business and the presence of innovative startups, supported by favourable government policies. Within the Indian fintech space, B2B lending is gaining momentum, with a 67% funding CAGR from 2019 to 2022. Currently, there are 60+ active startups in this sub-sector, accounting for 39.4% of the total funding raised by the fintech sector during 2014-2022. Even with a sturdy track record and positive estimates on the cards, the fintech sector, on the whole, is facing many challenges. These include a lack of awareness and financial inclusivity, dwindling consumer trust, scaling hurdles, the rising cost of customer acquisition and finding/retaining talent for seamless operations and continued innovation. However, startups and the Indian government are coming up with dynamic solutions to cope with these issues and ensure the growth and success of the fintech industry across the country.

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