India’s booming FinTech sector – third largest in the world – has again caught the attention of the UK, with British FinTech firms planning to invest over £100 million in the Indian market. Announced by Rishi Sunak at the InFinity Forum, this investment opportunity is likely to create thousands of jobs for Brits in the process.
It has been a ground-breaking year for the Indian FinTech sector, with an adoption rate of 87% – according to Sunak; a significantly higher number than the global average of 64%. Throughout the year, start-ups have played a major role in boosting India’s economy, with figures from the IMF showing that the country’s economic growth is predicted to grow at 9.5% this year, compared to the UK’s 6.8%. Adding 11 FinTech startups to their exclusive list of Unicorns this year alone, investment in India’s FinTech industry increased fourfold in the first nine months of 2021 – according to ET Tech. On top of that, India is on track to catch up to global incumbents such as the UK, US and China in terms of start-up funding and economic growth.
Research from JPIN shows that 29% (4,060,000) of investors in the UK plan on investing in FinTech markets, while this number jumps up to 31% for Brits aged 18-24. Global investors have already turned to India for investment opportunities; however, Sunak’s announcement further reiterates the potential of the Indian market in not only creating job opportunities for Brits, but also in providing a boost for the London Stock Exchange (LSE).
Gaurav Singh, co-founder of JPIN, discusses the global significance of India’s FinTech startups and investment opportunities in India:
“Startups in India have gone from strength to strength, receiving record-breaking capital and transforming this into both growth and returns on investors’ capital. The UK’s recent investment announcement demonstrates the legitimacy of India as a key player in FinTech not just locally, but internationally.”
“Investment opportunities in FinTech startups look set to be popular in the upcoming years, and the continuous collaboration between the UK and Indian economy will boost not only the awareness of small businesses in India – but also will create jobs in London and the UK, and ultimately boost what is already one of the leading stock exchanges in the world”