Karnataka will have 50 fintech unicorns by 2030: KDEM task force report

MANGALURU

Karnataka will have 50 fintech unicorns and 100 fintech soonicorns by 2030, which would increase State’s share in the fintech market from the present 20 billion dollars to 500 Billion. Country’s fintech market share is set to reach one trillion dollars by 2030, according to the report of the FinTech Task Force of Karnataka Digital Economy Mission (KDEM).

The report was submitted to Minister for Higher Education, Electronics, Information, Biotechnology, Science and Technology, Skill Development C.N. Ashwath Narayan by KDEM Chief Executive Officer Sanjeev Kumar Gupta, on the concluding day of the two-day Mangaluru Technovanza conference here on Saturday.

In the report, the task force said the fintech ecosystem in the State contributes to over 40% fintech start-ups in the country. Bengaluru ranks eighth among cities globally in terms of amount of venture capital investment attracted by fintech firms. Presently, the fintech market size of India was 50 billion dollars of which Karnataka contributes 20 billion. There are 10 fintech unicorns and 14 fintech soonicorns in Karnataka, it said.

Giving roadmap for strengthening fintech sector, the task force asked the State government to formulate a dedicated fintech policy. It has also recommended creation of incubation and accelerator programmes to mentor start-ups to refine ideas, create business plans, and building products.

Among other recommendations include setting up of new investment fund within clusters especially 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 select start-ups with loss protection and government credit guarantees, the task force said.

Receiving the report, the Minister said the State government is committed to the growth of fintech, IT, ITES, and Meditech sectors in the State.

Answering Rohith Bhat, the founder of Udupi-based Robosoft Technologies, about the need of space for start-ups and IT firms in Mangaluru cluster comprising of Dakshina Kannada, Udupi , Uttara Kannada, and Kodagu districts, Dr. Narayan said KEONICS will set up an IT park in Mangaluru in two lakh sq.ft area shortly. The government will hold talks with private companies and institutes in the region to open up their vacant spaces for creation of co-working spaces, incubation centres, and innovation hubs.