FinTech is a multi-billion-dollar industry and it has been growing rapidly in India in the
last five years and is expected to grow further in the near future. Due to the current situation of
pandemic, FinTech companies are leading the way in a world where digital transactions are at an
all-time high. According to the National Investment Promotion and Facilitation Agency- “The Indian
FinTech market is currently valued at $31 Bn and is expected to grow to $84 Bn by 2025, at a CAGR
of 22%.The current state of the Indian FinTech industry is the result of a unique mix of technical
enablers, governmental interventions, and economic prospects, as well as certain additional
characteristics exclusive to India. Over 67 percent of India’s 2,100+ FinTechs were founded in the
last five years. In the quarter of June 2020, 33 new FinTech investment deals worth US$647.5
million were closed in India, compared to US$284.9 million in China. Overall, the FinTech market
in India is already worth US$31 billion and is expected to grow to US$84 billion by 2025. By 2023,
the value of FinTech transactions is expected to increase to US$138 billion, up from US$66 billion
in 2019. In this paper an attempt has been made to explain and analyse the reasons for the growth
of FinTech industry, potential challenges and prospects this industry is experiencing in current time
period in the Indian context.