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 is fostering 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 the Fintech entrepreneurial ecosystem in India using a novel firm-level dataset of Indian Fintech startups. The study builds upon a theoretical framework, investigating the influence and interconnectedness of social and founder capital signals on Fintech startup funding in India. Incubator and/or accelerator engagement is considered for social capital signaling. Ordinary least squares and propensity score matching methods are employed for this study. Findings suggest a significant signaling effect from social capital factors: incubator or accelerator support. Sources of founders' entrepreneurial signals, founder network, and experience, have also been evidenced to influence funding received by Indian Fintech startups.