Disruptions make way for success in the Indian Fintech market

Financial services have had huge number of disruptions in the past three years and the phase is yet to settle down. This phase of disruptions has been channelized by the rising number of technology companies and startup-vogue driven innovations. Lending and payments have introduced a new dimension to the Fintech market of India.

Indian Fintech Industry is reportedly set to reach a whopping size of $2.4 Bn by 2020. With more and more startups doing the rounds in the Fintech market bigger players seem to fall in the trend of making big investments. According to a recent study that calculated the phenomenal rise (in the period between 2014 to 2016) of the Indian startups in relation to the Fintech market here are a few important summations:

Paytm has reportedly been active in funding, a massive 38.5% of the total Fintech funding in 2014 – 2016. 37 (which is huge according to industry experts) market related subsector funding has taken place in the phase between 2014 – 2016. Highest monthly profit with $25.71Mn deals and funding activities taking place in August, 2016.
248 investors (completely new born) who have had prominent reach and presence in the Fintech market during this phase. A whopping figure – 76 Fintech deals have taken place in 2016, which is a huge rise from the November – December 2015 phase. A two-fold rise in the market size by 2020.

Numerous collaborations between large-sized companies and startups have been possible. Existing players have been forced to invest big money to expand their services and range of product offerings in the market.

With the true advent digital India BFSI sector has seen expansion. The Fintech market has set up new-age prospects for consumers and business houses. Collaborations and new product launches have set up competitions.

Inc42 has provided few financial reports that indicate the changing trend in the Indian Fintech funding:

Fintech has reportedly brought with itself $1.77 Bn  worth of business in India  in 2014. Several start-ups have become household names in India. There are various big ticket funding that are in the pipeline. Average Fintech funding ticket sizes have been estimated to stand at about $9.82 Mn in the phase between 2014  – 2015.

There are potential big ticket funding to come up in the near future. Mumbai has witnessed the birth and growth of major changes in the Indian financial environment. With start-ups such as InCred, Mswipe and Citrus Pay, Mumbai has seen a momentum in the Fintech marketplace.

With all the financial new waves, shocks, disruptions and storms taking place in the present times, Fintech has been enjoying its new found space, recognition and expansion. Demonetization in India has only been a fodder to the massive rise of Fintech. The future path seems a lot more promising than the previous ones. BFSI sector seems to enjoy the new found warmth and renewed vigour with its Fintech arm positioning itself zealously.

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