Trending Fintech Stocks in India 2024

Discover the trending fintech stocks for optimal investment growth, ensuring the expected returns on your portfolio.
Trending Fintech Stocks in India 2024
3 mins read
06-May-2024

The fintech sector has played a key role in the accelerated digitalisation of the Indian economy. With UPI, trading apps, and virtual banking and lending platforms, financial services have become highly accessible for customers while propelling growth opportunities for small businesses and startups. Owing to these tremendous developments in the entrepreneurial space, it is no surprise that there’s excitement about investing in financial stocks in India.

An overview of the fintech stocks in India

In just a decade, the fintech domain in India has made significant strides, thanks to the digital revolution, government initiatives and support, and expansion of the middle-income demographic. Spanning from quick payment services and wealth management to insurance, the industry has witnessed a rapid ascension of several segments via organisations, including RazorPay and MobiKwik.

A 2021 report by Boston Consulting Group (BCG) claimed that the fintech market in India is estimated to be valued between $150 and $160 billion by 2025. Factors like rising usage of smartphones, digital literacy, and innovation in open banking and API-based services are credited for this growth. Likewise, the state authorities have made strategic efforts to bring the Indian fintech industry to the forefront with programs like Startup India, Digital India, and UPI.

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Key considerations to make while investing in fintech stocks in India

You may be tempted to pick the headlining brands of sectors while investing in fintech stocks. However, it is vital to examine each company to gauge how its current standing and future initiatives and plans can offer lucrative returns. Ensure that you do your due diligence by assessing the following factors to make the best investment calls.

  • Fiscal standing: Start by going through the company’s financial health, which includes its revenue, profits and losses, and existing debts. Taking a hard look at its financials will help you understand its growth so far and the stability it provides as a publicly traded enterprise.
  • Regulations: The fintech industry is closely monitored by the government of India and regulatory bodies, including NSE and SEBI. The directives prescribed by these institutions protect investors from pitfalls, but at the same time, they could hinder a company’s progress. So, confirm if the firm you are investing in has all its ducks in a row, i.e., it complies with the mandatory regulations to evade any unpleasant shocks later.
  • Investment in technology: The cornerstone of a fintech company is its ability to catch up to the latest technological advancements. Hence, it is crucial that you pick a firm that generously invests in technology and product innovation so it can stay ahead of the curve and augment—or at least maintain its market share.
  • Market performance: Verify if the company has faced any kind of financial setbacks in the past and how well it has coped with them. Additionally, take a look at growth avenues in its segment, like insurance, lending, or digital payments and any possible risks that could impact your portfolio. Lastly, don’t forget to check how the company deals with competitors and market trends.
  • Leadership: The management that runs a company is directly responsible for its financial success. So, it is imperative that you appraise members of the leadership, their roles, past decisions, visions, appetite for risks, and competitiveness to gauge where the company’s future is headed.

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Popular fintech stocks in India

To help you get your fintech investment journey started, we have listed companies that are currently trending in the fintech market. That being said, it is highly recommended to go through all the considerations mentioned above to make informed decisions.

  • Bajaj Finance Ltd.: Rendering a comprehensive array of financial products, Bajaj Finance Ltd. has proved itself with remarkable growth and an exceptional customer experience in the past few years. The company’s competitive interest rates, flexible repayment plans, and technology-based funding have made banking more user-accessible and smoother.
  • CDSL: Central Depository Services Limited (CDSL) enables you to manage the transactions and settlements of your securities. The demand for it among investors for trading activities thereby makes it a viable investment option as the Indian capital market expands and flourishes with every passing day.
  • Paytm: One of the long-standing players in the fintech world, Paytm or One 97 Communications is a behemoth in the digital payments ecosystem. Catering to both customers and merchants, it has also partnered with other financial brands to integrate loan services to MSMEs. Its wide-ranging financial footprint makes it a palatable stock investment if you are looking for a company that has the experience and resources to sustain in a rapidly transforming fintech landscape.
  • PB Fintech: The showrunner of PolicyBazaar, PB Fintech has made a mark in the insurance arm of finance. By functioning as a virtual insurance aggregator of insurance contracts, it has made comparison shopping easier than ever. Besides being a compiling tool for insurance plans, it now also offers various financial products and services.
  • Infibeam Avenues: Recognised for its digital platforms, Infibeam Avenues offers a basket of services, including digital payment solutions and enterprise software. It mainly acts as a payment processor for B2B users like merchants and commercial consumers.

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Conclusion

The financial stocks in India are undoubtedly one of the hottest investment channels due to their high relevance and long-term growth opportunities. However, as more disruptive technologies make their entries, it is important that you invest in companies that hold a capacity for expansion and align with your financial vision. So, ensure you review any prospective decisions with a fine-tooth comb to maximise your returns and alleviate risks associated with fintech stocks in India.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Standard Disclaimer

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Research Disclaimer

Broking services offered by Bajaj Financial Securities Limited (Bajaj Broking) | REG OFFICE: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corp. Office: Bajaj Broking., 1st Floor, Mantri IT Park, Tower B, Unit No 9 &10, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O/CDS (Member ID:6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN –163403.

Website: https://www.bajajbroking.in/

Research Services are offered by Bajaj Financial Securities Limited as Research Analyst under SEBI Registration No.: INH000010043.

Details of Compliance Officer: Ms. Kanti Pal (For Broking/DP/Research) | Email: compliance_sec@bajajfinserv.in/ Compliance_dp@bajajfinserv.in | Contact No.: 020-4857 4486 |

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Investment in the securities involves risks, investor should consult his own advisors/consultant to determine the merits and risks of investment.