India surpasses China in fintech deals

India has emerged as Asia'sbiggest destination for financial technology (fintech) deals,leaving behind China in the quarter ended June 2020, aresearch report said on Wednesday.

With around 33 deals valued at USD 647.5 million,India has the highest investment in the fintech segmentcompared to China's USD 284.9 million during the quarter endedJune 30, 2020, the report released by RBSA Advisors said.

Total investments in India's fintech sector crossedthe USD 10 billion mark over the last four and half years(calendar year 2016 to H1 of 2020).

''Amid COVID 19, India has seen a 60 per cent increasein fintech investments to USD 1467 million in H12020 comparedto the USD 919 million for the same period last year,'' theleading valuation, investment banking and transaction advisoryfirm said in a statement.

Bengaluru and Mumbai remain the top two headquarteredcities for fintech companies.

''While the fintech industry is still in its earlyadoption stage, we believe it is well-positioned to witnesslong-term growth in the coming years. The changes will be morefocused on digital lending (alternative finance) and openbanking'', RBSA Advisors MD and CEO, Rajeev Shah, said.

Out of total 21 unicorns in India, around one-thirdare fintech companies, Paytm being the highest valued unicorn,at USD 16 billion.

The fintech market in India was valued at Rs 1,920billion in 2019 and is expected to reach Rs 6,207 billion by2025, expanding at a compound annual growth rate (CAGR) ofabout 22 per cent during the 2020-2025 period.