Technology

India Surpasses China and Becomes Asia’s Top Fintech Destination

In India, the Fintech sector saw an investment worth $647 million during the quarter, ending 30 June 2020 across 33 deals. India becomes the biggest destination in Asia concerning financial technology (Fintech) deals, surpassing China in the quarter ending June 2020. China saw an investment worth USD 284.9 million during the quarter ending 30 June 2020.

Over the previous four and half years, the Fintech sector in India witnessed the total investments cross the USD 10 billion mark. India saw Fintech investments worth $1.46 billion in the first half of 2020, which translates into a 60% hike compared to $919 million for the same period in 2019. Mumbai and Bengaluru are the two cities that have remained the top two headquartered cities concerning Fintech companies.

In 2019, India’s Fintech market was valued at Rs 1,920 billion; it is anticipated that by 2025 it will be valued at Rs 6,207 billion. The expectation is that the Fintech market value will expand at a compound annual growth rate (CAGR) of around 22% during the 2020-2025 period.

The official report also stated that the Fintech industry is currently in an early adoption stage; it is expected to see long-term growth in the upcoming years. The changes in the Fintech industry will emphasise more on open banking and digital lending. The Fintech industry’s growth will create outsized opportunities in the long run for companies and empower them in this digital time.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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