India’s financial technology firms are poised to become three times as valuable in the next five years, reaching a valuation of $150-160 billion by 2025, according to a report.
The report unveiled on Saturday details the findings from the study that Boston Consulting Group (BCG) and FICCI undertook to size the value-creation potential and identify imperatives for India’s fintech growth.
“India is strongly poised to realise a fintech sector valuation of $150-160 billion by 2025, translating to an incremental value-creation potential of approximately $100 billion. It is estimated that to meet this ambition, India’s fintech sector will need investments of $20-25 billion over the next five years,” said the report.
India has more than 2,100 fintech firms, of which 67% have been set up over the last 5 years alone. The valuation of the industry is estimated at $50-60 billion.
The industry’s growth has been undeterred by the pandemic, as it has seen the emergence of three new Unicorns and five new Soonicorns ($500 million+ valuation) since January 2020.
