India has one of the largest and widest set of Fintech startups with multiple mature startups in payments, lending, wealth, regtech and banktech areas. Indian startups have largely focused on local market for past few years due to sheer size of the opportunity available. This is reverse of Israeli ecosystem, which is focusing on international markets only due to lack of local market.

By way of just stats, the dimensions of Indian opportunity is immense:

  • 6th largest economy in the world
  • 2nd largest in terms of population
  • 2nd largest internet users
  • Amongst top adopters of fintechs

To make it more interesting,

  • Indian ecosystem is ultra competitive with each sub-segment having more than 10+ decent competitors.
  • Indian B2B customers are the toughest in terms of negotiations and expectations.
  • Requirements in India are more complex and ever changing
  • Indian platforms are always built for scale
  • Indian tech skills are amongst the best and relatively cost effective

Many Indian startups are now reaching maturity stage in India (which does not mean that they are not growing within India) and are getting ready for international expansion. We have seen some of them entering neighboring countries in Asia and causing market disruption through their innovation and scale.

I believe Indian Startups will create immense impact on Middle East and South East Asian Fintech Ecosystem in next 12 to 24 months.

Why?

  • Needs in these countries are similar to what these startups have seen in India (Product Market Fit is High)
  • Many of these ecosystems are not well developed and would gain immensely from Indian expertise
  • Buyer community in many of the countries has fair share of Indians, making it easier to connect
  • Pricing wise Indian startups are always better

I believe that Indian Fintechs would be amongst top players in some of these countries by 2021 / 22. This will pave way for their entry into other markets like US / Europe by 2022.

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