Venture capital fund Cedar-IBSi Capital has forecast that investments in India’s BankTech sector will reach $1 billion by the end of 2027, underlining the pivotal role banking technology will play in accelerating India’s journey toward a $7 trillion GDP by 2030.
Sahil Anand, Founder and Managing Partner of Cedar-IBSi Capital, highlighted the digital transformation sweeping the banking industry, noting that nearly 80 per cent of traditional banking services can now be carried out digitally. This evolution is expected to not only increase operational efficiency but also broaden access to financial services in underserved regions, promoting financial inclusion.
Key technologies such as cloud computing and blockchain are reshaping the sector. While cloud platforms offer scalable, agile and cost-effective infrastructure, blockchain is improving security and transparency in areas like supply chain finance and identity management.
Cedar-IBSi Capital, a Rs 240 crore fund, has already made two early-stage investments in the BankTech space and plans to support 10-15 startups in the coming years. The fund also aims to bolster 8-10 high-performing companies in the banking tech ecosystem, driving innovation and sustainable growth across the financial sector.
