India has emerged as Asia's biggest destination for financial technology (fintech) deals, leaving behind China in the quarter ended June 2020, a research report said on Wednesday.
With around 33 deals valued at USD 647.5 million, India has the highest investment in the fintech segment compared to China's USD 284.9 million during the quarter ended June 30, 2020, the report released by RBSA Advisors said.
Total investments in India's fintech sector crossed the USD 10 billion mark over the last four and half years (calendar year 2016 to H1 of 2020).
"Amid COVID 19, India has seen a 60 per cent increase in fintech investments to USD 1467 million in H12020 compared to the USD 919 million for the same period last year," the leading valuation, investment banking and transaction advisory firm said in a statement.
Bengaluru and Mumbai remain the top two headquartered cities for fintech companies.
"While the fintech industry is still in its early adoption stage, we believe it is well-positioned to witness long-term growth in the coming years. The changes will be more focused on digital lending (alternative finance) and open banking", RBSA Advisors MD and CEO, Rajeev Shah, said.
Out of total 21 unicorns in India, around one-third are fintech companies, Paytm being the highest valued unicorn, at USD 16 billion.
The fintech market in India was valued at Rs 1,920 billion in 2019 and is expected to reach Rs 6,207 billion by 2025, expanding at a compound annual growth rate (CAGR) of about 22 per cent during the 2020-2025 period.