In 2023, India’s fintech startup scene experienced significant shifts, witnessing established players making strides amidst regulatory challenges. Looking ahead to 2024, several trends are set to define the industry, ranging from the evolution of fintech super apps to funding dynamics, climate financing, and more.

Fintech Super Apps

The trend of financial service convergence among unicorns and major players emerged prominently in 2023. Super apps, fueled by simplified payment technologies, began expanding their models. Anticipating this evolution to continue into 2024, startups are expected to explore new consumer service verticals. Leveraging the influx of users from streamlined payment methods, these fintech super apps aim to diversify their offerings and introduce innovative products.

Funding Dynamics: Slow Growth Except in Digital Lending

While overall moderate growth in funding is anticipated for the startup ecosystem, specifically in fintech, 2024 may see a substantial focus on digital lending and platform models. Platforms aligning themselves with profitability are expected to secure funding, with a preference for investments in super apps and lending tech. Despite potential improvements in funding activity, reaching the peak levels observed in 2020 or 2021 appears unlikely.

Mergers and Acquisitions: High-Valuation Giants Driving Consolidation

The prospect of mergers and acquisitions remains on the horizon for 2024, driven by high-valuation fintech giants and listed companies. The complex build-vs-buy debate within fintech, influenced by regulatory factors, suggests that large platforms may open their networks to smaller players, fostering collaboration. M&As are poised to play a vital role in enhancing capabilities, acquiring talent, and adapting to regulatory changes.

Climate & EV Financing: Emerging Growth Areas

The year 2024 is expected to witness growth in climate tech and electric vehicle (EV) financing. Investors and venture capitalists, focusing on business models with immediate impact, are likely to channel capital into climate financing. The significant shifts observed in EV financing during 2023, with startups securing funding rounds, indicate the sector’s potential. This aligns with the government’s emphasis on sustainable development, making it a notable area to monitor in the coming year.

Fintech Unicorns Eyeing India Listing

Fintech unicorns are contemplating listing on Indian bourses in 2024. Despite concerns surrounding tax implications, these companies are exploring strategies to bring their holding companies to India. The potential easing of tax burdens by the government may influence these decisions, aligning with efforts to retain value within the Indian economy.

Automation and AI/ML: Reducing Dependency on People

The adoption of artificial intelligence (AI) and machine learning (ML) is expected to reduce dependence on human resources within the fintech sector. Automation is poised to streamline operations, cut costs, and enhance efficiency across various fintech aspects, including content creation, risk assessment models, and document processing.

Regulatory Focus: Payments Gateway and API Banking

Continued regulatory scrutiny is anticipated in 2024, particularly focusing on payment gateways and API banking. The RBI’s persistence in digital lending oversight, with recent directives targeting fraudulent loan apps and imposing stricter guidelines for banks, suggests a regulatory focus in this area. The Digital Personal Data Protection Act may pose challenges for startups offering core banking software, particularly those with international operations. Payment gateways are likely to remain under regulatory scrutiny.

Fintech-Bank Partnerships: Navigating Regulatory Challenges

In the absence of banking licenses, fintech startups are likely to prioritize partnerships with banks as a primary path forward in 2024. The inherent complexities of acquiring banking licenses and navigating regulatory considerations make such partnerships a strategic approach. The challenges and regulatory landscape may evolve, potentially opening new licensing opportunities for startups in 2024.


As we approach 2024, the fintech landscape in India is poised for transformation, with emerging trends shaping the industry’s trajectory. Fintech startups, resilient in navigating challenges, are exploring novel avenues for growth while adapting to the evolving regulatory landscape. Collaborations, innovations, and strategic decisions are expected to play pivotal roles in determining the success of these startups within the competitive and dynamic Indian fintech ecosystem.