Grand Success of the India FinTech Report

MEDICI released its 125-page India FinTech Report 2019 on March 15, 2019. The report was launched by the Honorable Governor of Maharashtra, C. Vidyasagar Rao. The report is a comprehensive study of the Indian FinTech ecosystem encompassing both core FinTech segments (Payments, Lending, InsurTech, WealthTech, and Corporate Banking) as well as the less-discussed-but-emerging segments like RegTech, Cybersecurity, Blockchain, and Beyond Banking (PropTech, AgriTech, and HealthTech). In addition to the Governor of Maharashtra, other dignitaries present at the launch of the report included Mr. Sopnendu Mohanty, Chief FinTech Officer at MAS; Mr. Mark Field, Member of Parliament – UK; Ms. Tara Scheurwater, Ag. Consul General – Consulate General of Canada; and Mr. SVR Srinivas, Principal IT Secretary – the Government of Maharashtra.

To quote Suniti Nanda, FinTech Officer with the Government of Maharashtra, As part of this event, we signed an MOU with MEDICI for leveraging its expertise to benefit the broader ecosystem. The India FinTech Report by MEDICI is a great beginning to set a benchmark within the existing ecosystem, with factual knowledge.

The report also includes a foreword on the progress made in India’s FinTech sector by Dilip Asbe, MD & CEO at NPCI. The India FinTech Report 2019 is based on MEDICI’s proprietary FinTech platform which has over 13,000 global FinTech startups (2,035 from India) and in-depth market intelligence derived from more than five years of tracking the FinTech industry.

Media Coverage

MEDICI’s India FinTech Report 2019 has achieved remarkable success, made evident by leading news mediums in India covering and citing the report. We have highlighted a few of them below:

Analysis & Insights From the Report

1. A large number of deals in the FinTech ecosystem focused on financing early-stage startups as opposed to financing late-stage startups. Indian FinTechs secured over $1.83 billion in funding in 2018; approximately, 43% of these deals (by value) were of Series B or below. If we exclude two of the top deals (Paytm and PolicyBazaar) from Series F, approximately 62% of the deals were of Series B or below. Since early-stage financing rounds are of usually smaller value, we understand that a large number of deals were focused on financing early-stage startups as opposed to financing late-stage startups.

2. More funding is required for IOT-based preventive insurance compared to the aggregators/policy management for better adoption of digital insurance in India. Preventive insurance providers are gaining traction globally. Such insurance providers are armed with the capabilities of AI/ML and leverage deep data insights to drive the transition from reactive restitution to proactive prevention. IoT-based preventive insurance is one of the key areas that need to be developed for better adoption of digital insurance in India. Startups that are already active in this area include Niramai, CarlQ, and BetO. However, increased funding in this space is required so that this area can gain additional traction.

Out of the total amount of funding raised by InsurTech startups in 2018 ($362 million), only 5.6% ($20.27 million) has gone into this space. As of 2018, the bulk of funding, i.e., 76.4% ($276.56 million) was raised by aggregators/policy management. The current penetration of insurance in India is also quite low, i.e., 3.69% compared to the global average of 6.5%. Hence, InsurTech in India has a long way to go with more funding required in segments such as IOT-based preventive insurance. The InsurTech market landscape is illustrated in the logo wall below:

3. Personal finance management is a fast-growing area and raised the bulk of funding ($47.5 million) out of the total funding raised by the WealthTech startups in 2018 ($72.2 million). Personal finance management applications provide a more structured way of managing money when compared with manual tracking of expenses and bank balances. Out of the total 2,035 startups in India, 169 (8.30%) belong to the category of personal finance management. In our analysis of five core FinTech segments, we have included Personal Finance Management as a sub-segment of WealthTech. WealthTech is a broader area and refers to a growing class of financial technology companies that are creating digital solutions to mold the investment management industry. When included as a sub-segment of wealth- tech, personal finance management form more than one third (approximately 36%) of total WealthTech startups.

In terms of funding, personal finance management raised 65.8% ($47.5 million) of total funding ($72.2 million) raised by WealthTech startups in 2018. Hence, personal finance management is a fast-growing segment in the Indian startup ecosystem.

4. SME financing (digital) is an upcoming sector which raised 45% of the total funding in the lending segment in 2018. In the SME sector, there is a credit gap of $240 billion. Traditionally, banks have been hesitant to grant loans to the SME sector due to lack of documented credit scores to prove their creditworthiness, inconsistent cash flow, and lack of assets to keep as loan collaterals. The unaddressed SME lending space has, however, been looked upon by new-age lending providers that analyze data points like bank statements, invoices, transaction history, and digital footprints before deploying loans.

Some of the startups active in SME financing (digital) include Lendingkart, Capital Float, and Power2SME. An analysis of the period between September 2016 and September 2018 demonstrates that the market share for MSME lending space is shifting to NBFCs and private banks from PSBs. PSBs’ market share has reduced from 58.6% (September 2016) to 48.1% (September 2018). The shift is due to the involvement of FinTech/alternative digital lending players.* Notably, out of the total funding that took place across the lending space, approximately 45% ($238 million) was raised by SME financing (digital) – this augurs well for the SME financing (digital) sector and the SME sector as well. The lending market landscape is pictured in the logo wall below:

5. Payments is the largest FinTech segment in India, which accounted for 18.43% of the total number of startups and 38.73% of the total amount of funding raised by Indian FinTech startups in 2018. The global digital payments market was valued at $3 trillion in 2018 and is expected to grow to $7.6 trillion by 2024. The digital payments market in India is expected to reach $1 trillion in value by 2023 and is expected to form a significant portion of the global digital payments market. Out of the 2,035 FinTech startups in India, most startups belong to the Payments segment (375 startups), which amounted to 18.43% of the total number of startups. Payments-related startups also raised the most funding in India in 2018, which amounted to 38.73% of the total amount of funding raised ($708.94 million out of a total of $1.83 billion). The Payments market landscape is pictured in the logo wall below:

Some Other Highlights From the Report

  • Bengaluru (432 startups) leads the FinTech momentum followed by Mumbai (428 startups).

  • Number of FinTech startups in India (2,035): Payments (375), Lending (338), WealthTech (Retail) (303), Personal Finance Management (169), InsurTech (108) RegTech + Cybersecurity (58), and other segments (684).

  • In 2015–18, India had the second-highest number of startups founded (more than 1,300) preceded by the USA (more than 1,600). In 2015–16, India had the highest number of FinTech startups founded compared to any other country (excluding China).

  • India has not only the fastest-growing entrepreneurial base but also a significantly large one at that with 2035 startups and VC/PE funding of $1.83 billion across 165 deals in 2018.


The India FinTech report 2019 provides a deep-dive into the five core segments: Payments, Lending, WealthTech, InsurTech, and Corporate Banking. It presents rich insights on new opportunity areas including AgriTech, HealthTech, and PropTech, and also covers the more significant developments in RegTech, Blockchain, and Cybersecurity. Much of the FinTech startup activity in India is focused around these areas, and hence this report is a crucial reference point for any organization which is looking to gain an understanding of the Indian FinTech space. Not only does the report cover all these segments in great detail, but it also provides examples of startups active in each of these segments and subsegments along with inhibitors and drivers. Additionally, the report also provides FinTech statistics on startup funding, startup locations, as well as initiatives by the government.

To quote Amit Goel, Co-founder & Chief Strategy Officer at MEDICI, In recent years, there has been a surge of renewed interest in India as a key market from global investors, banks, and FIs. At MEDICI, we felt it was important to conduct a reality check to ascertain where we stand regarding the demand gaps that exist in India. As a global company with expertise in the Indian FinTech landscape, we were ideally placed to reflect on the growth and transformation of this ecosystem through this report.

The India FinTech Report 2019 is a successful endeavor by MEDICI to utilize its expertise on the India FinTech landscape to benefit the broader FinTech ecosystem.

*According to MSME Pulse Report by TransUnion CIBIL & SIDBI