India Fintech Market: Investment, Sandbox and Account Aggregators

India's fintech sector combines private investment with regulator-led infrastructure. This report covers investment flows and two RBI frameworks: the regulatory sandbox and Account Aggregators.

India attracted USD 3.5 billion of fintech investment across 213 deals in 2025 [1]. KPMG called India a major growth driver in Asia-Pacific, where fintech investment fell from USD 11.7 billion across 1,028 deals in 2024 to USD 9.3 billion across 763 deals in 2025 [1].

India accounted for about 37.6% of Asia-Pacific fintech investment value and about 27.9% of the region's deals in 2025 (FREEE.REPORT calculation) [1]. India's total was higher than China (USD 876.1 million), Japan (USD 645.6 million) and Australia (USD 609.9 million) [1].

RBI's regulatory sandbox runs under the Enabling Framework for Regulatory Sandbox, first issued in August 2019 and most recently updated in February 2024 [2]. The sandbox works in cohorts; a cohort lets selected fintechs test products with real customers under defined regulatory relaxations [2]. The February 2024 update introduced theme-neutral cohorts, opening the sandbox to innovation across RBI's regulatory domain [2].

Account Aggregators are non-banking financial companies licensed by RBI that pass financial data from Financial Information Providers to Financial Information Users with customer consent [3]. An applicant must meet a minimum net owned fund of INR 2 crore [3].

Investment figures are from KPMG's Pulse of Fintech H2'25 press release, which uses PitchBook data and covers VC, PE and M&A [1]. India's shares of Asia-Pacific value (3.5 / 9.3) and deals (213 / 763) are FREEE.REPORT calculations. Sandbox history is from an Observer Research Foundation analysis of RBI frameworks [2]. Account Aggregator licensing details are from Sahamati, the industry alliance for the AA ecosystem [3]. Official counts of Account Aggregator users and consents were not verified in this edition and are not reported.