Karnataka will have 50 fintech unicorns and 100 fintech unicorns by 2030, increasing the state’s share of the fintech market from the current $20 billion to $500 billion. The country’s fintech market share is set to reach one trillion dollars by 2030, according to the FinTech Task Force of Karnataka Digital Economy Mission (KDEM) report.
The report was submitted to Higher Education, Electronics, Information, Biotechnology, Science and Technology, Skill Development Minister CN Ashwath Narayan by KDEM chief Sanjeev Kumar Gupta, on the concluding day of the two-day Mangaluru Technovanza conference here on Saturday.
In the report, the working group said that the fintech ecosystem in the state contributes to over 40% of fintech start-ups in the country. Bengaluru ranks eighth among cities globally in terms of the amount of venture capital investment attracted by fintech firms. Currently, the fintech market size in India was $50 billion, of which Karnataka contributes $20 billion. There are 10 fintech unicorns and 14 fintech unicorns in Karnataka, it said.
The task force provided roadmap for strengthening the fintech sector and asked the state government to formulate a dedicated fintech policy. It has also recommended the creation of incubation and accelerator programs to guide start-ups to refine ideas, create business plans and build products.
Among other recommendations include the establishment of new investment funds within clusters, particularly in Mangaluru. and collaboration with agencies and authorities for creation of funds for Karnataka-based fintech start-ups. Government-backed growth funds are needed to provide selected start-ups with loss protection and government credit guarantees, the task force said.
On receiving the report, the minister said that the state is committed to the growth of fintech, IT, ITES and Meditech sectors in the state.
The IT Park in Mangaluru
Responding to Rohith Bhat, the founder of Udupi-based Robosoft Technologies, on the need for space for start-ups and IT firms in the Mangaluru cluster comprising Dakshina Kannada, Udupi, Uttara Kannada and Kodagu districts, Dr Narayan said that KEONICS will put up an IT park in Mangaluru in two lakh sq.ft area soon. The government will hold talks with private companies and institutes in the region to open up their vacant areas for the establishment of co-working spaces, incubation centers and innovation hubs.
Chairman of Manipal Global Education TV Mohandas Pai; State Government Startup Vision Group Chairman Prashanth Prakash; Additional Chief Secretary, Department of Commerce and Industries, EV Ramana Reddy; Karnataka Digital Economy Mission Chairman BV Naidu; and Deputy Head of Mission, British High Commission, KT Ranjan, also spoke.
MP Nalin Kumar Kateel and Mangaluru city south MLA D. Vedavyas Kamath participated.
