2024年第四季度探索亚太地区的金融科技之路：第三部分：印度（英）2024

APAC Fintech Overview

APAC Overview

• Key Opportunities: Fast-growing economies, rising middle classes, large underbanked populations, and large talent pools.
• Fintech Sectors: Alternative lending, capital markets, payments, credit & banking, CFO stack, commercial finance, regtech, and wealthtech.

Deal Activity

• APAC Fintech Deal Value: Declined from $16.1 billion in 2021 to $2.3 billion in H1 2024.
• VC Deals: Decreased from 238 in H1 2023 to 186 in H1 2024.
• Regional Breakdown:
  • China: $31.2 billion (33.2% of total APAC fintech VC deal value).
  • Southeast Asia: $26.7 billion (28.4%).
  • India: $25.1 billion (26.6%).

Venture-Growth Fintech Deals

• Growth: Steadily increased from 3% to 11.3% of all VC deals by H1 2024.
• Decline in Early-Stage Deals: Pre-seed/seed deals decreased to 19.9% of total deals.

Geopolitical Challenges

• US-China Tensions: Challenging fintech expansion in APAC.
• India’s Ban on Chinese Apps: Complicating cross-border efforts for Chinese fintech companies.

India Fintech Overview

Overview

• Expansion: Expanded over the last decade, driven by government support, rapid digitization, and a growing middle class.
• Unique Digital Infrastructure: India Stack (including Aadhaar and UPI) enhancing financial inclusion.
• VC Investments: Declined from peak levels in 2021 to $0.8 billion in H1 2024 (37.2% of APAC fintech VC deal value).

Key Metrics

• Fintech VC in H1 2024: $0.8 billion.
• Deal Size and Valuation: Median deal size increased by 48.8% to $4 million; pre-money valuation increased by 45.9% to $11.4 million.

Impact of India Stack

• Financial Inclusion: Enabled millions of previously underserved citizens to access financial services.
• UPI: Transformed the payments landscape, making digital transactions a norm.
• Account Aggregator: Helps unlock more tailored financial offerings and enhances underwriting functions.

Challenges

• Credit Gap: Large credit gap, especially among lower and middle classes and MSMEs.
• Labor Market: Low-cost labor market impacting talent attraction, particularly in AI, blockchain, and cybersecurity.
• Alternative Business Models: Companies exploring credit offerings or B2B solutions to offset limited revenue from payments.

Conclusion

APAC is ripe for fintech disruption, driven by fast-growing economies and rising middle classes. India’s fintech sector has seen significant expansion, with the India Stack playing a crucial role in financial inclusion. However, challenges such as geopolitical tensions, credit gaps, and labor market constraints remain. Fintech companies are exploring alternative business models to address these challenges and drive further innovation.