India’s fintech industry is set to grow at an impressive 31% compound annual growth rate (CAGR) between 2025 and 2029, driven by stronger governance, profitability, and renewed investor confidence, according to KPMG in India’s latest report, “India’s fintech evolution… from growth to resilience.”
The report launched at the Global Fintech Fest said India’s fintech ecosystem, underpinned by digital public infrastructure pillars such as UPI, Aadhaar, and Account Aggregator frameworks, is transitioning from rapid expansion to a phase marked by trust and operational maturity.
KPMG’s analysis showed that around 60% of total fintech funding in the first half of 2025 flowed into lending and payments
—reflecting investor preference for established, scalable segments. Deal activity has also rebounded, with 12 deals above $50 million in H1 2025 compared to just one in the same period last year.
The report introduced KPMG’s Trust Score 1.0 Blueprint, a proposed framework to assess fintechs on security, governance, and operational reliability—aligning with RBI’s IT Directions and the Digital Personal Data Protection (DPDP) Act.
“India’s fintech evolution is entering a new phase—one where embedded finance, powered by responsible AI, redefines how financial services integrate into daily life,” said Akhilesh Tuteja, Partner and Head, Clients and Markets, KPMG in India.
Sanjay Doshi, Partner and Head, Financial Services Advisory at KPMG in India, said the sector “must now move beyond disruption to demonstrate durability,” stressing the need to institutionalise trust and pursue profitable growth.
Looking ahead, KPMG identified tokenisation of real-world assets and private credit financing as key themes that could propel India to a global leadership position in digital financial innovation.