Share of new credit borrowers in India 2020, by lending type

In 2020, around 29 percent of new credit borrowers in India chose a fintech platform to fund their expenses. Fintech was followed by regional rural banks (RRB) and non-banking financial companies (NBFC). The big private and public sector banks only reached shares of ten and nine percent, respectively.

Fintech in India

2019 had been the most successful year for India’s fintech companies recently. More than 730 venture capital deals and nearly 420 angel investment deals were negotiated that year. The total private equity and venture capital investment value in the fintech industry amounted to nearly 1.4 billion U.S. dollars. In terms of start-up foundations, digital payments was the most popular segment, followed by digital lending.

Paytm

The fintech company One97 Communications, owner of the payment system paytm (pay through mobile), was India’s leading unicorn by market valuation. Founded in Noida in 2010, paytm received several billions in funding from several well-known investment companies, including Chinese investor Ant Financial, SoftBank from Japan, and the Tata Group.