Top Fintech Stocks in India

The Fintech sector has emerged as one of the most transformative sectors in India, reshaping how individuals and businesses interact with financial services. From digital payments to online lending and wealth management platforms, Fintech companies in India are rapidly pushing boundaries and capturing market share.

In this blog, we’ll explore the fintech sector in detail and highlight the top fintech companies in India for investors’ attention.

Understanding the Fintech Sector in India

Fintech, the fusion of finance and technology, is revolutionising how financial services are accessed, delivered, and consumed in India. The fintech sector encompasses digital payments, lending platforms, insurance, wealth management, blockchain applications, and more. With more than 9,000 fintech companies, India has one of the fastest-growing fintech industries in the world. Currently valued at Rs. 9,61,593 crore (US$ 111 billion), the Indian Fintech sector is projected to reach Rs. 36,47,123 crore (US$ 421 billion) by 2029. 

Globally, India has the third-largest FinTech ecosystem. In India, there are more than 2,000 Financial Technology (FinTech) companies that have received DPIIT recognition. This growth of the fintech sector is driven by digital adoption, regulatory support, and increasing demand for financial inclusion. In 2024, the fintech sector raised a total funding of $1.9 billion and recorded substantial momentum with 2 fintech companies, Money View and Perfios, achieving unicorn status, reflecting the growing fintech sector in India.

The Reserve Bank of India (RBI) regulates fintech operations to ensure financial stability and consumer protection, particularly in areas intersecting with banking, payments, and lending. Major regulatory pushes like UPI adoption, the Account Aggregator framework, and the Digital Lending Guidelines by the RBI have added tailwinds to this sector’s growth. With an over 87% fintech adoption rate in India, compared to the global average of 67%, the fintech industry shares in India are set for significant innovation and growth.

Best fintech stocks in India

Here’s a list of fintech stocks in India, ranked by market capitalisation, for investors to select the Best fintech companies to invest in.

An Overview of India’s Top 5 Fintech Stocks in India 

Here is a thorough description of India’s best fintech stocks for long-term investment:

1. Bajaj Finance Ltd.

Bajaj Finance Ltd. is one of the top non-banking financial companies (NBFCs) in India. With its headquarters located in Pune, the company provides a wide range of products, including wealth management, house loans, personal loans, SME loans, and vehicle financing etc., to more than 100 million consumers across the country.

Bajaj Finance has established itself as the best fintech sector stock by consistently delivering strong financial results. The company recorded a 22% increase in net interest income to ₹9,807 crore in its Q4FY2025 results. Also, they posted a revenue growth of  23.65%, while net profit rose 19% to ₹4,546 crore.

In the latest financial results of Q4FY2025, the company declared that its assets under management (AUM) had grown to ₹4.16 lakh crore, showing a 26% YoY increase. With a strong balance sheet, diversified revenue streams, and a digital-first approach, Bajaj Finance remains a compelling long-term investment opportunity in India’s fintech and financial services landscape.

2. PB Fintech Ltd.

PB Fintech Ltd., the parent company of Policybazaar and Paisabazaar, stands as the leading digital insurance and lending marketplace in India. Its headquarters are in Gurugram. The company has built a dominant franchise, serving millions of customers across the country with a comprehensive suite of online insurance and financial products.

In FY25, the company delivered a stellar financial performance, with consolidated operating revenue soaring 45% year-on-year to ₹4,977 crore and net profit surging 448% to ₹353 crore. The company’s total insurance premium reached ₹23,486 crore, and the new health and life insurance premiums rose 48%, driven by robust growth in the health and life insurance segment. 

The company’s agent aggregator platform, PB Partners, now boasts over 3,00,000 advisors and a presence in 19,000 pin codes, covering 99% of India. With a revenue CAGR of 52% since its listing in November 2021, PB Fintech is exceptionally well-positioned to benefit from India’s digital financial services boom. 

3. One 97 Communications Ltd. (Paytm)

One 97 Communications Ltd., the parent company of Paytm, stands as a pioneering force in India’s digital payments and fintech ecosystem. The company offers digital payments, merchant services, lending, insurance, and wealth management.

In FY25, One 97 Communications reported a consolidated operating revenue of ₹6,900 crore, a decline of 31% year-on-year from ₹9,978 crore in FY24, primarily due to regulatory headwinds and lower UPI incentives. Paytm’s business performance in Q4 FY25 showed resilience in certain segments. Revenue from financial services surged 9% quarter-on-quarter to ₹545 crore, while the company distributed personal and merchant loans worth ₹5,738 crore, a 13% increase from the previous year. 

Despite some challenges, Paytm has maintained a robust cash position, with a balance of ₹12,809 crores at the end of FY25, up from ₹8,650 crores in FY24, supported by asset sales and prudent capital management, making it one of the Top fintech companies in India.

4. Central Depository Services (India) Ltd. (CDSL)

Central Depository Services (India) Ltd. (CDSL) stands as India’s leading and Asia’s only listed depository, playing a pivotal role in the country’s capital market infrastructure. Its headquarters are in Mumbai. CDSL provides secure and efficient depository services to over 15.29 crore investors.

CDSL offers a wide range of services, including demat account maintenance, transaction processing, e-voting, KYC services, and IPO/corporate action facilitation. In FY 2024-25, CDSL achieved a record opening of approximately 3.73 crore new demat accounts, becoming the first depository in India to cross 15 crore active accounts. In FY25, its consolidated total income increased by 32% year-on-year to ₹1,199 crore, and net profit climbed 25% to ₹526 crore. 

This robust growth of CDSL was driven by higher transaction volumes, increased demat account openings, and strong capital market activity. With a dominant share in India’s rapidly expanding investor base, CDSL remains an essential pillar of the Indian capital markets and an attractive long-term investment opportunity in the listed fintech stocks.

5. KFin Technologies Ltd.

KFin Technologies Ltd. stands as a leading technology-driven financial services platform in India, specialising in investor and issuer solutions across mutual funds, alternative investments, and global markets. Its headquarters are in Hyderabad, and it manages 330 million investor folios.

In FY25, KFin Technologies delivered a stellar 30.2% year-on-year growth in revenue from operations, reaching ₹10,907.5 crore, driven by strong traction in both domestic and international segments. Its Profit after tax (PAT) rose 35.2% year-on-year to ₹332.63 crore, with a PAT margin of 30.5%. The company maintained a healthy cash and cash equivalents position of ₹659.57 crore as of March 31, 2025. 

With its consistent financial performance, diversified revenue streams, and leadership in both domestic and international markets, KFin Technologies Ltd. stands out as an ideal long-term investment opportunity in the list of best-performing fintech stocks in India.

Factors to Consider Before Investing in Fintech Stocks

Investing in top fintech stocks in India offers promising growth opportunities but also requires careful consideration of various factors to make informed decisions. 

Business Models and Revenue Streams

Understand the specific business models fintech companies employ, ranging from digital payments, lending, insurance, and wealth management to SaaS platforms, and how these generate sustainable revenue streams. Assess whether the company’s model demonstrates scalability and consistent profitability through recurring revenues or transaction-based income.

Competitive Advantage and Innovation

Analyse the fintech firm’s competitive positioning, technological innovation, and agility compared to legacy financial institutions and other fintech peers. Firms that leverage emerging technologies like AI, blockchain, and open banking and adapt rapidly to market changes usually maintain a competitive edge.

Regulatory Environment and Compliance

Fintech companies operate in highly regulated spaces; hence, understanding their compliance with financial regulations, data privacy laws, anti-money laundering (AML) practices, and cybersecurity standards is crucial. Regulatory changes or failures to comply can lead to operational risks or costly sanctions.

Financial Health and Key Performance Metrics

Carefully review financial metrics such as revenue growth, profitability, return on equity (ROE), capital adequacy, loan-to-deposit ratios, and asset quality indicators like gross non-performing assets (GNPA). Companies with healthy balance sheets and consistent earnings growth are preferable.

Risk Factors and Volatility

Fintech stocks can be volatile due to rapid technological evolution, market competition, cybersecurity threats, and regulatory uncertainties. Investors should consider the risks specific to fintech, including operational risks, technology failures, fraud, and algorithmic biases.

Management Quality and Strategic Vision

Assess the capability and track record of the management team in executing growth strategies, managing risks, and steering the company through regulatory landscapes. Leadership’s ability to forge strategic partnerships or acquisitions can significantly impact long-term success.

Final Thoughts

The Indian fintech sector offers a compelling investment opportunity driven by a vibrant blend of innovation, financial inclusion, and technological advancement, making it an attractive choice for investors seeking growth and diversification. 

From large-cap giants like Bajaj Finance and Paytm to high-growth mid-cap firms like KFin Technologies, India’s fintech stocks offer diverse investment opportunities across digital payments, lending, insurance, and financial infrastructure services. However, investors must conduct thorough due diligence before investing in this evolving industry. India’s fintech revolution is just beginning, and to participate in this exciting journey, open a demat account with Share.Market to harness the full potential of fintech investments.

FAQs

1. What are Fintech Stocks?

Fintech stocks represent companies that develop or provide technology-driven financial services such as digital payments, lending, insurance, and wealth management.

2. Which Metrics are Important to Evaluate Top Fintech Stocks in India?

Investors should evaluate key metrics like revenue growth, profit margins, market share, return on equity, technology integration, regulatory compliance, and leadership quality before investing in any fintech stock.

3. Is It Safe to Invest In the Best Fintech Stocks in India? 

Investing in fintech stocks carries risks. Fintech stocks can be volatile due to regulatory changes, intense competition, and the need for continuous innovation. Investors should assess company fundamentals and sector risks before investing.

4. What is the Future of the Fintech Sector in India?

The fintech sector is projected to grow at a CAGR of over 30% through 2032, with increasing adoption of digital payments, lending, and insurance, supported by favourable demographics and government initiatives.

5. What are the Advantages of Investing in Fintech Stocks in India?

An investment in fintech stocks allows investors to harness the growth prospects of the rapidly growing fintech sector, driven by rising smartphone and internet usage. 

6. Who Should Invest in the Top Fintech Stocks in India?

Fintech stocks are an appealing choice for investors seeking to diversify their holdings with cutting-edge companies revolutionising traditional financial services and having high-risk tolerance. 

7. How Can I Invest in Fintech Stocks in India?

You can invest in fintech stocks via any SEBI-registered stockbroker like Share.Market. Open a demat account, search for the fintech stock, and place a buy order on the NSE/BSE.

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

Registration granted by SEBI, enlistment as a Research Analyst with the Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The securities are quoted as an example and not as a recommendation.

This is for informational purposes and should not be considered as recommendations. Kindly refer to  https://share.market/ for more details. PhonePe Wealth Broking Private Limited, Research Analyst with SEBI Regn No: INH000013387, BSE RA Enlistment Number: 5887.