Karnataka is emerging as an epicenter of innovation in India’s rapidly expanding fintech ecosystem. Backed by forward-thinking policies and a commitment to inclusive development, the state is reshaping how financial technology evolves and reaches citizens across urban and rural landscapes.
India is now the world’s third-largest fintech ecosystem, home to over 5,000 startups and 25 unicorns. Karnataka stands at the forefront of this evolution, setting the pace for the rest of the country through a targeted, three-pillar strategy that supports innovation, infrastructure, and global outreach.
The Elevate program is at the heart of this strategy, designed to empower early-stage entrepreneurs. The program offers seed grants of ₹250 lakh and extended financial and institutional support of ₹25 crore focused on Beyond Bengaluru clusters. This initiative ensures that startups from underserved regions are equipped with the resources needed to innovate and scale.
In parallel, Karnataka is strengthening its knowledge infrastructure. A ₹10 crore support fund has been extended to NSRCEL at IIM Bengaluru, enabling deeper research, training, and mentorship across the fintech landscape. By building such foundational capacity, the state is preparing a new generation of entrepreneurs and technologists who will shape the future of finance.
Karnataka is also aligning its fintech vision with the transformative power of Artificial Intelligence. AI is rapidly reshaping how financial services are delivered, and the state is integrating this shift into its core priorities. These include democratising innovation access across regions, enhancing public-private partnerships in fintech, and expanding global outreach through regulatory sandboxes that allow safe, scalable experimentation.
Through this approach, Karnataka is ensuring that the benefits of fintech reach far and wide—from startups in emerging districts to international investors seeking stable regulatory environments. The state’s inclusive, AI-driven fintech growth strategy reflects both local aspirations and global ambitions.
Also Read: Karnataka Leads the Way in Fintech Growth and Accessibility
As Karnataka continues to lead with purpose and policy, it remains committed to building a dynamic fintech ecosystem that is innovation-ready, future-focused, and deeply inclusive.
Views expressed by: Rahul Sharanappa Sankanur, IAS, Director, Department of Electronics, IT, Biotechnology and Science & Technology, Government of Karnataka, MD, Karnataka Innovation and Technology Society (KITS), at the World Fintech Summit 2025.
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