India's financial technology companies 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.
"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," says the report.
India's dynamic FinTech industry has over 2,100 FinTechs of which 67 per cent have been set up over the last 5 years alone. The total valuation of the industry is estimated at $50-60 billion.
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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 mn+ valuation) since January 2020.
Prateek Roongta, Managing Director and Partner, Boston Consulting Group India said, "We believe India's FinTechs are at the precipice of significant value-creation of $100 billion over the next five years."
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