India home to 26 fintech unicorns with a combined market value of $90 bn

India's fintech industry continues to flourish, solidifying its position as a global leader. With a combined market value of $90 billion, India boasts 26 fintech unicorns, including one decacorn, shows data analysed by JM Financial.

Source: Ministry of Finance , Tracxn, State of the Fintech Union 2023 BCG Note: 1) Valuation of $10Bn or higher 2) Valuation $1Bn or higher but less than $10Bn 3) Company that has the potential to turn into a Unicorn in the next 3 years (Valuation $1

Key Highlights:

• Rapid Growth: The number of registered fintech startups in India has grown by approximately five times in the past three years, from 2,100 in 2021 to 10,200 in 2024.
• Global Leadership: India ranks third globally in terms of the number of fintech unicorns, trailing only the United States and China.
• Decacorn Presence: India has one decacorn (a company valued at over $10 billion) in its fintech sector.
• Unicorn and Minicorn Landscape: The country has 25 unicorns (valued between $1 billion and $10 billion) and 37 minicorns (valued between $100 million and $1 billion).
• Soonicorns: There are 87 soonicorns (companies with a valuation between $60 million and $100 million) in the Indian fintech space.
• Combined Valuation: The combined valuation of Indian fintech companies is estimated to be $125 billion.
• Revenue Generation: The combined revenues of all fintech companies in India were estimated to be $20 billion as of FY23.
• Dominant Sectors: Payments and lending have been the most funded sectors in the Indian fintech industry, accounting for 85% of the capital raised.

Snapshots of Unicorns and Soonicorns in the Fintech ecosystem

 

Between 2014 & 2023, Fintech startups have cumulatively raised $28 billion+ in 1,486 deals

IPO Success: The fintech sector has witnessed significant exits through several initial public offerings (IPOs). A total of 20 fintech companies have gone public in the past two decades.

Revenue Generation: The fintech industry contributed approximately $20 billion in revenues in FY23, representing around 5% of the total revenues generated by all banking, financial services, and insurance (BFSI) companies in India.

Mergers and Acquisitions: The fintech sector has witnessed a flurry of mergers and acquisitions, with a combined value exceeding $4 billion in the past decade.

Dominant Sectors: Payments and lending have emerged as the most funded sectors within the Indian fintech industry, capturing the lion's share of capital raised.

Diverse Business Models: The fintech landscape in India is characterized by a wide range of business models, including merchant payments, wallets, consumer payments, lending, insurance, and wealth management.

JM Financial believes rising consumption, penetration & AI will lead to 150 Fintech Unicorns & $200 billion in Fintech revenue by 2030