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State of the Fintech Union 2024

Yashraj Erande Neetu Chitkara Vivek Mandhata Nisha Bachani Vikram Khanna Akshat Raj Jinia Rao Chirag Sharma

The Indian Fintech ecosystem is the third largest and one of the fastest-growing globally. Despite a dip in funding, the sector continues to thrive, with revenues surging to $25 billion in 2023—up by 56% year-on-year. The ecosystem is now in its “middle journey” and is poised for exponential growth and scale in the coming years. As the sector expands, companies must identify long-term capability enhancements and undertake initiatives to propel growth while managing rising cyber risks and frauds. Our survey of 60+ founders and CXOs highlights that market share expansion and growth are key priorities along with an increased focus on profitability, unit economics, and governance. Furthermore, as the ecosystem matures, access to capital will be crucial; however, only half of those surveyed feel prepared for an IPO. Therefore, this report serves as a critical guide, outlining best practices and strategies for navigating public market listings. This journey, however, extends beyond the listing itself—companies must also focus on delivering sustained profitability through value creation strategies.

In this context, BCG has collaborated with Z47 (formerly known as Matrix Partners India) to launch the 3rd edition of the SOFTU report at the Global Fintech Fest 2024. This report offers insights into the key drivers and opportunities in the Indian Fintech landscape, the perspectives of founders and CXOs, and a playbook for preparing for IPOs.

We would like to thank Vikram Vaidyanathan, Anish Patil, Anand Khetan, Taha Tinwala, and Nipun Singhal from Z47 (formerly known as Matrix Partners India) for co-authoring this report with us.