Viewpoint: India’s fintech future looks bright, but it needs to find its raison d’être
By Piyush Singh
There is no doubt India’s fintech market is on fire. The last decade has seen high levels of fund infusion into the Indian market, and despite a drop in overall volumes in 2018, five of the top 10 fundraisings ever took place last year. The growth of the fintech market is aided by several macroeconomic factors such as India’s booming economic growth, large population, abundance of technical know-how and the entrepreneurial drive of digitally savvy young technocrats, and according to NASSCOM things will continue to look up – with our fintech market potentially touching US$ 2.4 billion by 2020.
Yet there is more room for growth. The market in India is still small; far more deals are being done in China, and for far higher valuations. Last year alone, venture capital investments into Chinese fintechs were more than 10 times larger than those in India, with 75 percent more deals.
Photo courtesy of Simone McCourtie.