India emerges as Asia’s biggest destination for fintech deals

A recent research report released by RBSA Advisors has revealed that India has emerged as Asia’s biggest destination for financial technology (fintech) deals, leaving behind China in the quarter ended June 2020. With around 33 deals valued at US$ 647.5 million, India has the highest investment in the fintech segment compared to China’s US$ 284.9 million during the quarter ended June 30, 2020.

Total investments in India’s fintech sector crossed the US$ 10 billion mark over the last 4.5 years from FY 2016 to H1 of 2020).

“Amid COVID-19, India has seen a 60% increase in fintech investments to US$ 1467 million in H1 2020 compared to the US$ 919 million for the same period last year,” the leading valuation, investment banking and transaction advisory firm said in a statement.

Bengaluru and Mumbai remain the top two headquartered cities for fintech companies.

“While the fintech industry is still in its early adoption stage, we believe it is well-positioned to witness long-term growth in the coming years. The changes will be more focused on digital lending (alternative finance) and open banking”, RBSA Advisors MD and CEO, Mr. Rajeev Shah, said.

Out of total 21 unicorns in India, around one-third are fintech companies, Paytm being the highest valued unicorn, at US$ 16 billion.

The fintech market in India was valued at Rs. 1,920 billion (US$ 26.45 billion) in 2019 and is expected to reach Rs. 6,207 billion (US$ 85.52 billion) by 2025, expanding at a compound annual growth rate (CAGR) of about 22% during the 2020-2025 period.


Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


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