Indian fintech to reach $200 billion in revenue, to see 10x growth by 2030: Report

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The Indian Fintech market is expected to register 10-fold growth to reach $1 Tn in Assets Under Management (AUM) and $200 billion in revenue by 2030, revealed by a study titled “$1 Tn India Fintech Opportunity”, published by Chiratae Ventures in collaboration with Ernst and Young (EY).

Much of the growth will be driven by the digital lending market, which is expected to grow to $515 billion in book size by 2030.

The report estimates the market to reach $1Tn in AUM with contributions from lending to peak at 50 percent +, while from a revenue perspective, payments and lending make up 75 percent + of the pool.

As of March 2022, India is home to 21 fintech unicorns, and favorable demographics, increasing technology adoption, higher disposable income and a conscious consumer are driving this growth.

Moreover, to meet the changing needs of customers, fintech companies has developed innovative products and delivery methods.

Also, government programs including Smart Cities, Digital India, Unified Payments Interface (UPI) and others are promoting the expansion of the Indian fintech industry.

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Commenting on the report’s findings, Sudhir Sethi, Founder and Chairman, Chiratae Venturessaid, “The Indian fintech market has been a formidable global force, contributing to the largest share of unicorns in India. We have been a technology-first investor, having backed companies such as EarlySalary, Kristal.ai, PB Fintech , ShopSe and Vayana, among others.”

“We also expect that fintech will continue to solve for the significant and growing sub-markets with new solutions,” TC Meenakshi Sundaram, Co-Founder and Vice Chairman, Chiratae Ventures stated.

In addition, the study found that neo-banking, wealthtech, digital lending, payments and insurtech, with agro and proptech as major bets, will all contribute to the expansion of the fintech industry.

Reportedly, the BNPL (Buy Now, Pay Later) model has become popular and is expanding rapidly, showing strength in both the business-to-consumer (B2C) and business-to-business (B2B) payment space.

Sharing his views, Rajiv Memani, Chairman and Managing Partner, EY Indiasaid, “India is recognized as a strong Fintech hub globally and is increasingly becoming a talent destination for fintech companies. We are excited to partner with Chiratae Ventures and delve into the new trends in regulatory innovation, technology advancements, new business models , industry convergence and inclusive digital financial services in the Indian fintech space.”

“New asset classes, crypto and NFT, will also continue to attract investor interest as fintechs continue to solve for traditionally underserved customers,” the report noted.

Read also | Fintech startup Jify raises $10 million from Accel and Nexus Venture Partners

The report further observed that with five times growth in digital technology talent, India has the opportunity to address the global digital skills gap and establish itself as the destination for digital and technology talent.

The report also emphasized how regulatory support will help the industry move forward as already well-established models go international through collaboration.

Moreover, a favorable regulatory environment has been created by actively promoting innovation through regulatory sandboxes, new distribution strategies and the introduction of innovative products.