Venture capital fund Cedar-IBSi Capital has projected that investments in India’s BankTech sector will reach $1 billion by the end of 2027. The announcement comes as India progresses towards its ambitious $7 trillion GDP target by 2030, with the banking sector expected to play a crucial role in accelerating economic growth.

Cedar-IBSi Capital Founder and Managing Partner Sahil Anand emphasized the ongoing technological revolution in the banking industry, which is rapidly shifting core functions toward digitization. He noted that nearly 80% of traditional banking services can now be performed digitally, significantly boosting financial inclusion and expanding banking access to underserved regions.

Cloud computing is emerging as a game-changer for the sector, providing scalability, agility, and cost-efficiency in banking infrastructure. Meanwhile, blockchain technology is enhancing security and transparency in transactions, particularly in supply chain finance and identity management.

Cedar-IBSi Capital, a ₹240 crore fund, has already made two investments in the BankTech space and plans to expand its portfolio to 10-15 early-stage startups. The fund is also focusing on strengthening 8-10 high-performing enterprises within the banking technology ecosystem, further driving innovation and growth in the sector.