Indian fintechs raised record amount of venture capital funds in 2021
Payments firms continued to attract the most money in 2021. At $ 2.7 billion, they captured 39% of total venture capital funding in India’s fintech industry this year.
The continued dominance of payment companies is not surprising. Annualized payments across the country stand at more than $ 2 trillion, according to a Jefferies India Fintech report released this month. While cash continues to be widely used, its share of transactions has increased from 98% in 2015 to 89% in 2020, Jefferies estimated.
“The history of consumer-side payments is now clear: PhonePe, GPay and Paytm dominate it. The next boom is expected in technology capable of innovating and opening up more use cases, ”said Amit Nawka, Executive Director, Deals, PwC India. Companies like Razorpay, a payment gateway company, and Zeta, a card infrastructure provider, are among those who have raised funds this year.
“The main focus is not just processing payments, but to offer a wide range of services such as loans, enabling e-commerce and even banking services,” said Abhishant Pant, Founder of The Fintech Meetup . As such, companies like Khatabook, which can integrate financial services with simple accounting, and BharatPe, which focuses on merchant payments, have generated interest.