“Fintech plays a key role in supporting innovation across digital payments and financial services in India.”
Scanning a QR code is all it takes to get your payment in India. And in the most populous country in the world, it means more than 650 million transactions per day during a festive month, that’s an average daily value of US$ 10.4 billion. This indicates on how far the digital payment infrastructure in the country has evolved — handling massive, real-time transactions, highlighting India’s dominance in the global fintech landscape. The scale and speed of adoption continue to attract fintech VC firms in India focused on long-term sector growth.
India’s fintech sector has a total addressable market of US$ 793 billion, which is expected to grow to US$ 2.1 trillion by 2030, at a projected CAGR of 18%. This growth trajectory strengthened investor interest among fintech-focused VC firms in India, specifically across lending, payments, and financial infrastructure platforms. The major breakout phase for fintech space happened between 2016 to 2020, driven significantly by the demonetization move of November 2016. Growth accelerated further with the launch of the Unified Payment Interface (UPI) and solidified during the pandemic, when the digital adoption surged nationwide.
As of 2024, India ranks third globally with 10,200 registered fintech, including 26 unicorns. In the first half of 2025, the sector contributed about US$ 47 billion in revenues, and this figure expected to reach US$ 250 billion in 2030.
Digital lending segment remains the largest contributor, accounting for 51% of the total fintech opportunity and is expected to retain its dominance to 2030. Looking forward, AI and machine learning along with the expansion in the Digital Public Infrastructure (DPI) will be the largest catalysts in shaping the fintech landscape in India. With world’s youngest population and an evolving savings and investment culture, the fintech space has more sector level opportunities than ever before.
Innovation and growth are expected to materialise across segments such as MSME digitisation, embedded finance, wealth tech, insurance tech, compliance/regulatory tech, digital lending and cross-border payment. Fintech in India is not slowing down but demonstrating both exponential and sustained growth. With better infrastructure, continued innovation and focus on inclusion, India will set global benchmarks in digital finance. With sustained innovation and inclusion, fintech VC firms in India are expected to remain active drivers of sector growth.
Sources: The Times of India, Tejimandi by Motilal Oswal
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