February 17, 2021India
Which is The Most Favoured Fintech Sub Sector In India?
The Fintech Sector was the top startup sector in 2020 in terms of funding amount and deal count, while Digital Lending has been the most favored Fintech Subsector in India. In fact, lending tech startups accounted for 44% of the total venture capital investment in Indian Fintech startups in 2020. Furthermore, lending tech startups had the highest share for four consecutive years, from 2017 to 2020, with an average annual contribution of lending tech of 50%during this period.
Lending Fintechs in India possesses high investor confidence mainly because the Indian market has witnessed an exponential surge in demand for short-term loans related to purchases and spending. Nevertheless, given the current rise in digital lending fraud across the country, the government is likely to bring in more regulations in this Fintech subsector, which could decrease investor confidence in lending tech startups.
