India’s FinTech industry is set for a massive leap in value, with its overall valuation expected to rise to $150–160 billion by 2025, nearly three times its current size, according to a report released on Saturday by the Boston Consulting Group (BCG) and FICCI.
The study highlights that this surge could translate into $100 billion in incremental value creation over the next five years. To achieve this growth, the sector will require investments in the range of $20–25 billion by 2025, the report said.
Currently, India has more than 2,100 FinTech firms, with nearly 67% established in just the last five years. The industry’s present valuation is estimated at $50–60 billion. Despite the challenges posed by the COVID-19 pandemic, the sector has shown resilience — adding three new unicorns and five soonicorns (firms valued at over $500 million) since January 2020.
“India’s FinTechs are at the brink of significant value creation,” said Prateek Roongta, Managing Director and Partner, BCG India. “We estimate the industry has the potential to generate around $100 billion in value over the next five years. To realise this ambition, investments of $20–25 billion will be required. The number of Indian FinTech unicorns is also expected to more than double in the coming years.”
The report underlines that India’s FinTech sector has evolved into one of the most dynamic in the world, driven by rapid adoption of digital financial services, supportive regulatory frameworks, and strong investor interest. With continued momentum, the industry is expected to not only fuel innovation in financial services but also deepen financial inclusion across the country.
