India’s fintech scene has exploded, with more than 11,000 new companies joining the market over the last ten years and raising close to $200 billion in total capital. But the new money is clustering at a few big players, a fresh report from Beams Fintech Fund and Alvarez & Marsal notes.
The sector sits at a turning point, thanks to India’s growing digital public infrastructure and new regulations that open doors for fresh ideas. Infrastructures such as UPI, Aadhaar and the Account Aggregator network make it easy for anyone to use digital payments, which in turn sparks rapid innovation. At the same time, companies that own large data sets, have strong compliance systems and wide distribution networks are rising to dominate the market.
Lending is the hottest segment. It has attracted about 38 % of all fintech funding – roughly $7.2 billion since 2020 – as consumers demand fast, digital‑first credit. The report highlights that capital is flowing into tech that redefines financial services, from embedded finance tools to compliance platforms, and into B2B SaaS models that power risk, underwriting and API integration.
India also remains the world’s biggest cross‑border remittance market, sending $33 billion into the country in Q1 FY26 alone. That flow drives growth for cross‑border payment tech, the report says, and keeps banks and non‑bank finance companies (NBFCs) partnering with fintech originators in co‑lending and distribution tie‑ups. Super‑apps are also stepping up, channeling credit to their partner lenders.
Fintech NBFCs have been disbursing loans at an 88 % compound annual growth rate between FY22 and FY24, reaching $17 billion. They outpace traditional banks by leaning on data, technology and digital‑first distribution.
In short, India’s fintech economy is consolidating around a handful of leaders that combine strong data, compliance and reach, while the space continues to expand thanks to innovations in payments, lending and cross‑border services.
Source: ianslive
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
