FinTech entrepreneurial ecosystem in India: Role of incubators and accelerators

Fintech, a fusion of finance and technology, is changing the global financial landscape. The fast-evolving industry fosters financial inclusion, enabling cost-effective and efficient financial intermediation. The entrepreneurial ecosystem of an economy is pivotal in shaping the prospects of innovations in an economy. This study is an initiative in that direction, evaluating a novel firm-level dataset of Indian FinTech startups. The study investigates the factors influencing Fintech startup funding in India through social and founder capital signals. Incubator and/or accelerator participation is considered for social capital signaling. Ordinary least squares and propensity score matching methods are employed for the study. Findings suggest a significant signaling effect from incubator or accelerator support. Founder network and experience have also been evidenced to influence funding received by Indian FinTech ventures.