New Delhi, Oct 8 – KPMG India’s latest report says the Indian fintech sector is set to grow at an impressive 31 % compound annual growth rate over the next four years.
The study shows the market is moving out of a boom phase into a period of resilience, stronger governance and profitable scale. Digital public infrastructure—UPI, Aadhaar and the Account Aggregator framework—helps drive this shift.
In the first half of 2025, about 60 % of all fintech funding went to lending and payments, highlighting investor confidence in these mature, stable areas. After a sharp peak in 2021, deal activity has rebounded. Twelve deals north of $50 million closed in H1 2025, compared with only one in the same period last year. The move suggests investors are seeking scale and quality.
“India’s fintech evolution is entering a new phase where embedded finance, powered by responsible AI, will reshape everyday financial services,” said Akhilesh Tuteja, Partner and Head of Clients and Markets at KPMG India. “Innovation must be matched with governance, resilience and ethical safeguards. Talent will be the real differentiator, building a workforce capable of tackling advanced technologies and regulatory complexity.”
KPMG’s Sanjay Doshi, Partner and Head of Transaction Services and Financial Services Advisory, added that digital public infrastructure unlocks huge opportunities. “Long‑term success will depend on building institutional trust, embedding strong governance and pursuing transparent, profitable growth.”
The report urges India to build future‑ready, compliant, customer‑centric models where innovation thrives responsibly, positioning the country as a global benchmark for financial transformation.
Source: ianslive
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