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MEDICI Launches India FinTech Report 2020 – 2nd Edition

MEDICI launched India FinTech Report 2020 – 2nd Edition on July 23, 2020, at the Global FinTech Fest. MEDICI’s India FinTech Report 2020 is considered one of the most comprehensive reports on India’s FinTech space, covering all sectors of this high-growth industry. The earlier edition was released in 2019 by the Governor of Maharashtra and was well-received in India as well as globally at banks/FIs, FinTechs, VCs/investors, government departments, policymakers, and industry bodies. This year, we ‘upped the game’ and went even deeper in terms of data, insights, and visual representation. The second edition of this report features over 130 pages of sector-wise company landscape, performance & funding data, and commentary covering 18 months from January 2019 to June 2020. 

You can access the free 22-page executive summary report and grab your copy of the main report here.

MEDICI’s India FinTech Report 2020 features foreword by Mr. Nandan Nilekani, Co-Founder & Non-Executive Chairman at Infosys. He says, “The Indian FinTech ecosystem is known for its innovation and the scale at which it operates. This report is an ideal reference guide for anyone to understand the current drivers of this ecosystem and what it sets out to achieve. Therefore, we must highlight the relevance of the report and the value it provides to various stakeholders such as banks, other financial institutions, startups, investors, educational institutions, students, technologists, and government bodies. It not only covers the existing landscape of the ecosystem but also lays down its future roadmap. Regulators responsible for creating the framework for a robust FinTech policy in India to ensure that India leads the way in innovation globally will find valuable insights in this report.

“I am confident you will enjoy reading this phenomenal reference on India’s FinTech space and make good use of the insights it offers.”

Here are some snippets of the insights featured in the report:

Investments

In 2019, for the first time, India surpassed China in FinTech investments and became the third-highest funded country behind only the US and the UK. Cumulative investments in India’s FinTech space in the last 4.5 years, from January 2016 until June 2020, has crossed $10 billion. 

Total funding in the FinTech sector in India touched $5.4 billion during the last 18 months (January 2019 to June 2020), with digital lending startups leading the race in the number of funding deals. FinTech investments in the first half of the calendar year of 2020 touched $1.47 billion, a 60% increase over the corresponding period in 2019.

Growing Number of FinTech Startups 

The number of FinTech startups in India is now almost 2200, with Bengaluru and Mumbai contributing to nearly 42% of the companies.

The COVID-19 Impact

The COVID-19 pandemic, along with some other factors, created a frenzied interest in equity investing. About 1.2 million new accounts were opened with the Central Depository Services (India) Ltd. in March and April 2020 alone. FinTech companies in this space are seeing signs of growth.

Segment-Wise Coverage

Neobanking, a greenfield sector in India, has witnessed significant growth in the last 18 months (Jan 2019 - Jun 2020). The total funding raised by Indian Neobanks so far amounts to $139.8 million*. This does not include $93 million raised by Razorpay since 2019, a part of which will be used to fund its newly launched Neobanking initiative. There are over 15 Neobanks across consumer and business banking in India currently, some of which will launch for the public in the coming months.

With six in-principle licenses issued and most of the top banks on the verge of operational readiness, Account Aggregation will go mainstream in 2020. This much-awaited, user-consented, data-sharing framework will bring India a step closer to being an open data economy.

Digital payments continued strong growth and spiked during the COVID-19 period. AePS and UPI registered their highest monthly transaction numbers; UPI surpassed 1.3 billion monthly transactions and ₹2 trillion in monthly volume. With respect to digital toll payments, over 17.5 million FASTags were issued, a 128% increase since Nov 2019.

Grab your copy of the report to get a deep-dive analysis on each of the above sections and segments such as Lending, WealthTech, InsurTech, and more: click here!

MEDICI’s India FinTech Report 2020 - 2nd Edition is as comprehensive as it can get. It dives deep into all FinTech segments. This report will offer valuable domain insights into Payments, Lending, WealthTech, and InsurTech, among many others. Within each segment, you will find that in-depth research has been conducted to produce an accurate picture of what is currently happening in these segments by closely studying the trends, innovative business & tech models, inhibitors, and challenges.

Another interesting aspect of this report is the section on what lies beyond banking solutions and emerging, yet largely under-tapped, opportunities in India’s FinTech ecosystem. FinTech, as you know, is leveraged by and has had an impact on more than just payments and other banking processes. ’Beyond Banking,’ accordingly, gives due importance to other verticals such as open banking and financial infrastructure APIs, AgriTech, PropTech, HealthTech, RegTech, blockchain, and cybersecurity as well as what is happening at their intersections with financial services. We have seen the emergence of new players in blockchain, RegTech, and cybersecurity offerings and highlights the scope of more to be done in various categories. 

With India FinTech Report 2020, MEDICI hopes to kick off the conversation for India’s next FinTech growth phase.

Get your copy of the report and read the free executive summary here.

*Updated: 31 July, 2020