INDIA: According to The Pulse of Fintech H2’20, a bi-annual report on global fintech investment trends published by KPMG, overall global fintech funding across M&A, PE and VC was US$105 billion across 2,861 deals in 2020: the third-highest level of investment in fintech ever. With the exception of M&A – which saw deal value drop over 50 percent (from $130 billion in 2019 to $61 billion in 2020) – the overall fintech market proved remarkably resilient in 2020 despite a broad array of uncertainties, from the global pandemic to the US presidential election. Following a short COVID-19 driven pause in H1’20, fintech investment bounced back strongly in H2’20, more than doubling from H1’20 ($33.4 billion) to H2’20 ($71.9 billion). The US was the dominant benefactor for fintech investment in 2020, while the payments space continued to dominate investment from a sector perspective.
2020 Key Global Highlights
Key Highlights from India (Refer to page no. 64 of the report)
Despite pandemic challenges, India sees second-best year for fintech funding.
To boost digital transactions and the fintech industry, the government has proposed significant support in their recent budget announcements, which include a scheme to develop, promote and accelerate digital payments, following a sharp growth in online and contactless payments during the COVID-19 led lockdown months.
Sharing his views on the insights from India, Sanjay Doshi, Partner and Head of Financial Services Advisory, KPMG in India said, “ Many of the banks in India are now going down the path of digital. They are looking at tech and fintech companies that can help them move their digital activities forward, either investing in them directly or using them as service providers. That is going to be a big growth area for investment here in India – banking-as-a-service platforms.”
A bright future for fintech projected, with exits on the horizon
Given the increase in demand for digital payments, contactless payments, and e-commerce platforms, fintech investment is expected to remain robust well into 2021. Corporate investment is expected to be particularly strong as incumbent businesses continue to work to accelerate their digital transformation efforts.
In addition to payments and platform models, B2B solutions will likely be a very hot area of investment globally in 2021, including such areas as embedded finance and ‘buy now, pay later solutions. Blockchain is also expected to gain traction as blockchain-based solutions and digital asset offerings become more mainstream.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Please enter an answer in digits:
Sign me up for the newsletter!
Notify me of follow-up comments by email.
Notify me of new posts by email.
2014 The Global Indian New Network (TGINN)