A turning tide seen in the establishment of new fintech startups in 2023

Mumbai: The number of newly launched fintech startups in 2023 was 72.60 percent less than in 2021. Compared to 2022, this figure was 55.55 percent less, according to a research report. In 2023, 20 fintech startups were formed in India, while in 2021 this number was 73 and in 2022 it was 45. This does not include the number of startups with less than ten employees.

New regulations and compliance measures for all types of startups have made the situation challenging for new fintech ventures, the prepared report said.

India's fintech sector saw 30 acquisition deals in 2023, up from 37 in 2022 and 29 in 2021. About 20 of the 30 acquisition deals were made by large companies with more than 1,000 employees or funding of more than $50 million.

In 2024, trends that will influence the fintech sector include artificial intelligence in the financial services sector, digital markets through open banking.

This meeting of all startups with the Finance Minister is to be held on 26th February, in which startups from different sectors of the country will participate. The meeting will also discuss what kind of effects are being seen after the crackdown on Paytm. The Finance Minister has invited not only the startups but also the banks and the Deputy Governor of the Reserve Bank of India in this meeting.

Following the action taken by the Central Bank on Paytm Payment Bank, the company's CEO Vijay Shekhar Sharma met Finance Minister Nirmala Sitharaman some time ago. He presented his side but the Finance Ministry asked him to take up the matter directly with the Reserve Bank.