Press Release

India Fintech market expected to expand at CAGR of 31% up to 2025: ASSOCHAM PwC Report

India Fintech market expected to expand at CAGR of 31% up to 2025: ASSOCHAM PwC Report

New Delhi, 15th June 2022: India's Fintech is poised to grow at compound annual growth rate (CAGR) of 31% up to 2025 and this growth has also fuelled the Fintech focused need in the Indian talent pool. Indian Fintechs raised funding worth USD 10.6 billion in 2021.   
The global fintech industry has maintained significant momentum and seen considerable expansion. According to the ASSOCHAM PwC Report, rising consumer demand, innovative business models, technologies, and cost-effective services have resulted in the industry growing steadily. The report, titled, 'The Changing Face of Financial Services: Growth of Fintech in India', is jointly conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) with PwC.  
''The Fintech has the potential to transform the financial landscape, strengthen the efficiency of financial institutions and provide consumers with a variety of financial products at competitive prices,” says Mr Deepak Sood, Secretary General, ASSOCHAM. 
The Indian Fintech Story have enabled doors for more Fintech unicorns that are not even a decade old. The Unique Identification Authority of India (UIDAI) launched in 2009 has introduced a new set of infrastructure to enable Indian Fintech ecosystem. This included API Products, UPI, Aadhar, e-KYC, Digi Locker as public infra.  
The pandemic's digital adoption has undoubtedly played a significant role in the shift to digital payments with a seamless customer experience. It served as a tipping point for the widespread adoption of Fintech products. The number of new demat accounts increased by around 63 percent in FY22 compared to FY21. 
The pandemic has quickened the digitisation of various parts of the financial services value chain and the Fintech-SAAS segment has been developing innovative solutions like app-based bookkeeping and zero-code payment solution to aid this change. The Fintech-SAAS segment is expected to grow from a market size of USD 4.6 billion in 2022 to USD 12.6 billion in 2025, according to the report. 
According to the joint study, Fintech has emerged as one of the India's fastest growing sectors and garnered increasing interest from all the possible stakeholders both within and outside the country.  
MSMEs are a major area of focus as the sector has been traditionally underserved by financial companies with over 80% of 63.4 million MSMEs in India lacking access to formal lending channels. Apart from innovations in business models such as embedded finance, the environmental, social and governance (ESG) aspect is poised to be a key promoter of sectoral growth.  
Financial literacy is the major challenge with only 27% of Indian population being financially literate. The regulatory bodies are working to make the environment more transparent and empower end customers. With large volumes of sensitive data being generated, ensuring data privacy and security has become a major task for the regulator.  
The report provides an overview as well as an outlook on funding, innovations, consumer trends, business models and regulatory developments across various segments in Fintech.  
The India International Fintech Festival's fintech startups and organisations were recognised by the ASSOCHAM National Council of Fintech. Spice Money and Quinte Financial Technologies have won the ASSOCHAM Awards for Fintech and Digital Payments 2022, Excellence in Business Growth for the category (Early-Stage Fintech Startups). Airtel Payments Bank and Flexiloans won the category Excellence in Business Growth (Established Fintech Startups). Xoxoday and Mobikwik won the category Excellence in Business Growth (Incumbents). Zolve and Valocity India LLP have won the award for Excellence in Innovation/ Technology (Early-Stage Fintech Startup). Paytm Money won for Excellence in Innovation/ Technology (Established Fintech Startup) and Perfios Software Solutions, CCAvenue won for Excellence in Innovation/ Technology (Incumbents). 
Award for Excellence in Ecosystem Enhancement (Early-stage FinTech Start-ups) won by Association for emerging technologies, Decentro Tech. Award for Excellence in Ecosystem Enhancement (Established FinTech Start-ups) bagged by Signzy, Online PSB Loans. Award for Excellence in Ecosystem Enhancement (Incumbents) received by JusPay.  
Flexiloan, Juspay, and Decentro Tech received the Special Jury Award for Fintech and Digital Payments.