India's Fintech Evolution: From Growth to Resilience (KPMG Private Enterprise)

Summary

• Lending and payments together accounted for approximately 60 per cent of total fintech funding in H1 2025.p.5
• UPI averaged 657 mn daily transactions as of 21 September 2025, and Aadhaar had facilitated over 150 bn authentication transactions as of April 2025.p.10
• Digital payment transactions surged from 21 bn in FY18 to 228 bn in FY25, marking a 41 per cent CAGR.p.11

Key insights

1. Investor priorities have shifted from aggressive expansion to strategic resilience, with PE/VC funding more selective since its 2021 peak.p.5
2. PE/VC firms are prioritising scalable growth metrics, governance as a growth enabler, monetising the invisible, and talent and leadership quality.p.6
3. Since 2023, seed-stage funding has declined steadily while investor capital is increasingly concentrated around late-stage startups with validated business models.p.14
4. The BNPL customer base for online retail in India is expected to grow at a CAGR of 43 per cent (2021-2026).p.20
5. Private credit is increasingly viewed as a strategic enabler for fintechs operating balance-sheet-intensive models.p.24
6. Since 2015, MAS has announced three tranches of funding totalling over ~USD351 mn under the FSTI scheme.p.12
7. The report introduces the Trust Score 1.0 Blueprint, a proprietary framework to certify fintechs on operational reliability, model governance and regulatory hygiene.p.3