A report by Credit Suisse points that the rise of financial technology (fintech) companies in India and availability of risk capital augurs well for the ecosystem as start-ups now account for 10 per cent of new companies formed every year. While start-up ecosystem in India and innovation across sectors has resulted into a surge in number of unicorns to 100 with a combined market capitalisation of $240 billion, a report by Credit Suisse points that the rise of financial technology (fintech) companies in India and availability of risk capital augurs well for the ecosystem as start-ups now account for 10 per cent of new companies formed every year.
As per the report, if surge in private equity is a big enabler for the development of the start-up ecosystem, physical access enabled by improving internet, smartphone access, roads and electrification and jump in financial penetration are also playing a key role.
Speaking at the 24th Credit Suisse Asian Investment Conference, Neelkanth Mishra, co-head of equity strategy, Asia Pacific and India equity strategist at Credit Suisse, said formalisation and acceleration of digital adoption has benefitted unicorns and innovative firms are sprouting up in new sectors and are gaining scale on the back of digital public infra and partnerships. Mishra said, “Having acquired a user base of over 150 million users, fintech players have even started offering small-ticket personal loans or short-term credit to monetise their user base.”
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
