Fintech foray: India stands tall as one of the world's most prominent hubs for entrepreneurship, and fintech is expected to unlock a vast scope of services and earning opportunities, according to founders.

Amid the Entrepreneur Week 2024, which is celebrated every third week of February, the rising question has been around fintechs fighting for growth amid regulations on the category, pertaining to RBI’s recent clampdown on Paytm Payments Bank.

India has the highest FinTech adoption rate globally of 87 per cent, which is significantly higher than the global average rate of 64 per cent according to Invest India.

Ram Kewalramani, co-founder and MD at Mumbai-based fintech CredAble said fintech revenue is poised to soar to $1.5 trillion by 2030, with the industry’s fundamental growth drivers remaining intact. Many financial technology institutions and firms are boasting of robust unit economics and sustainable strategies, he added. 

“As the emphasis on global financial inclusion increases, fintechs are uniquely positioned to support the expanding financial services ecosystem,” he noted.

Notably, the total revenue in the finance market is expected to show an annual growth rate of 14.02 per cent from 2022 to 2027, which is projected to reach a market volume of $19.55 million by 2027 according to Statista data.

While the last decade focused on onboarding the world to digital finance, about two-thirds of the globe is now using fintech rails to transact, according to Danny Stag, Head of Growth at Peer-to-Peer (P2P) marketplace Paxful. 

“The next decade will see dramatic improvements in equality of access and interoperability, through cryptocurrency and peer-to-peer infrastructure, unlocking a vast scope of services and earning opportunities, especially in the Global South,” Stag added.

Winter Blues to Clearing Skies

The startup space faced headwinds of growth owing to lower investments, especially for late-stage startups in sectors such as edtech.

Despite the challenges, India stands tall as one of the world's most prominent hubs for entrepreneurship, being home to a thriving cluster of startups, Kewalramani said, adding that the funding winter prompted a shift towards sustainable business models and realistic valuations. 

“With startups poised to contribute 5-10 per cent to India's GDP by 2030, founders are taking a renewed approach to protect profit margins and steer their business towards long-term value creation,” he added.

Stag echoed the sentiment, saying that India's entrepreneurial spirit remains unyielding and has established the groundwork for a more inventive and robust startup environment. 

“With a clear route ahead of us in 2024, success hinges on embracing adaptation, utilising technology, and adhering to sustainable business strategies,” he advised on the way forward.