New Delhi: India’s fintech ecosystem has witnessed the entry of over 11,000 new players in the past decade, which have raised nearly $200 billion in total capital, but a smaller number of platforms are emerging as dominant nodes, a report said on Tuesday.
India’s fintech sector is at a critical inflexion point, influenced by open digital public infrastructure, progressive regulation, and a vast underserved consumer base, the report from Beams Fintech Fund and Alvarez & Marsal said.
The report identified a dual dynamic driving the market. Interoperable frameworks like UPI, Aadhaar, and the Account Aggregator ecosystem have facilitated deep inclusion and rapid innovation, but advantages in data, distribution, and compliance are enabling a smaller number of platforms to become dominant players, it said. This duality can be seen even in the lending segment, which is the largest recipient of fintech funding, receiving around 38 per cent of total funding, with $7.2 billion raised since 2020.
The report noted that the demand for seamless, digital-first personal credit fuels growth in this segment. “Capital continues to flow into areas where technology is reshaping financial services, from embedded finance and compliance-related platforms to B2B SaaS models that power risk, underwriting and integration,” said Sagar Agarvwal, Founder & Managing Partner, Beams Fintech Fund.
India remains the world’s largest cross-border remittance market, with inflows of $33 billion in Q1 FY26 alone, creating tailwinds for cross-border payment tech platforms, the release further said. Co-lending and distribution tie-ups are becoming mainstream as banks and NBFCs partner with fintech originators, while super-apps channel credit for partner lenders Disbursements by fintech NBFCs have grown by a CAGR of 88 per cent between FY22 and FY24 to reach $17 billion, outpacing traditional players on growth by leveraging technology, alternative data, and digital-first distribution, it noted.
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