NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, November 7, 2016

Though IT trade body Nasscom claimed that India has more startups than China last week, the KPMG Fintech100 report for 2016 does not reflect it.

In the top 100 fintech companies shortlisted from across countries, there are only three Indian startups that have made the cut, while China dominates the list with four among the top five and eight in the top 50.

Though fintech is an emerging sector in the Indian startup ecosystem with more than 70 startups coming up in the space this year across payments and lending verticals, they are yet to achieve scale and maturity .

“There are many emerging countries in Asia and Africa which are stepping up their fintech efforts and activities. In the case of India, there have been constraints like lack of technological readiness, open APIs, regulatory support and limited government incentives that are coming in the way of fintech companies scaling up and receiving the large scale investments that would convert them into fintech unicorns,“ said Neha Punater, head of digital strategy, innovation and fin tech at KPMG India.