India emerging as a hub for global fintech startups
The Economy of a country plays a vital role in projecting a country’s stature in the world, and it seems India’s time has finally arrived. People all around the world are now looking towards India as a base to set up their fin tech startups. Not only this, India itself has had a flood of startups coming up in the sector in the recent times forecasting good times in the financial market in the near future.
A recently released report by Nasscom states that India is currently home to almost 400 companies working in the fin-tech market globally. These promising number of companies choosing India as their base has been helpful in attracting investments worth almost over $450 million in fin-tech product startups last year.
In fact, India is all set to witness Barclays, United Kingdom’s banking giant operationalise its fintech innovation hub Rise in the country next month in June. With this, the bank will have five centres all across the globe focusing into tapping into the promising fintech startup ecosystem.
It’s not just Barclays that is hoping to strike gold with the fin tech startup ecosystem in India, but several other incubators and accelerators have also set up in the country to nurture this budding talent. Some of these names includes biggies like Bangaluru-based Rainmatter, Yes Bank’s collaboration with T-Hub and PayPal’s StarTank.
According to Nasscom’s predictions, the Indian fin-tech software market will cross the $2 billion mark by the year 2020. Currently, in totality, India has around 200 fin-tech start-ups, out of which almost 60% are working in the payment processing sector.
According to experts, escalating at a compounded annual growth rate of 7.1 per cent, the global fin-tech industry will be a promising $45 billion opportunity by the year 2020. Further, the Indian fin-tech industry is also expected to grow by 1.7 times by 2020. Currently, in totality, the current Indian fin-tech market is pegged at about $8 billion with the fin-tech software market at a whopping $1.2 billion.