BankTech investment projected to hit $1 bn by 2027 end: Cedar-IBSi Capital

Venture capital fund Cedar-IBSi Capital on Sunday said investment in the country's BankTech sector is projected to reach $1 billion by the end of 2027.

It said as the country is progressing towards achieving its gross domestic product target of $7 trillion by 2030, the banking sector will be a key driver for pushing the economic growth.

"Investment in India's BankTech sector is projected to reach $1 billion by the end of 2027," the company said. 

Cedar-IBSi Capital Founder and Managing Partner Sahil Anand said technological revolution has been transforming banking services in India, bringing down its core functions towards digitisation.

Research indicates that about 80 per cent of the traditional banking services can now be performed digitally, he said, adding that technology is playing a crucial role in driving financial inclusion, extending banking services toconsumers in underserved regions.

Cloud computing has emerged as a transformative force in the banking sector, offering scalability, agility, and cost-efficiency for banking infrastructure, Anand said.

He added that blockchain has been increasingly helping in enabling secure and transparent transactions, revolutionising areas like supply chain finance and identity management.

Cedar-IBSi Capital is a Rs 240-crore fund with two investments completed in the BankTech sector and is looking forward to extending the portfolio to 10-15 such early-stage startups, it said.

"There is an intensified focus on financially strengthening 8-10 high-performing enterprises within the banking technology ecosystem," it added.