Wednesday, April 24, 2024
Outlook India
Outlook Business

India’s fintech sector to touch $200 billion in revenue by 2030

The report by Chiratae Ventures and Ernst & Young also stated that it expects the industry to have $1 trillion in assets under management by 2030

India’s fintech sector to touch $200 billion in revenue by 2030

Outlook Start-Up Desk

POSTED ON August 11, 2022 6:12 PM

India’s fintech sector is expected to reach $1 trillion in assets under management (AUM) and $200 billion in revenue by 2030, according to venture capital firm Chiratae Ventures and consulting agency Ernst & Young. This was stated in a report released by them, which included payments, lending, neo-bank, insurtech and wealthtech in the fintech ecosystem.

The ’$1 Trillion India Fintech Opportunity’ report says that over $1 billion investments were in digital lending alone in 2021. Moreover, it estimated the market to grow to $515 billion in book size by 2030.

This growth is being propelled as fintech adoption gains momentum and Unified Payments Interface (UPI) gains greater adoption. As the digital payment landscape evolves, technologies like near-field communication (NFC) payments, point-of-sale (PoS) access and deployment of central bank digital currency (CBDC) will drive further innovations in this space, the report noted.

Moreover, e-commerce platforms are shaping customer behaviour by offering lending products. The report said that the 'Buy Now Pay Later' (BNPL) model is expected to become more popular in the B2B segment. 

Buoyed by this traction, funding in the Indian fintech start-ups is also seeing momentum. According to the report, it touched $7.8 billion in 2021, and the sector will handle $1 trillion worth of assets by 2030.

Presently, digital payment firms have been the beneficiaries of most of this funding. It said that of the total $7.8 billion raised by the sector last year, $3.5 billion (roughly 44%) went to fintech payment firms. As of March 2022, India had 21 fintech unicorns.

“The market has seen high valuations on the back of large untapped market opportunities…and historical fintech growth has been driven by an organic and collaborative ecosystem while being supported by key government initiatives,” the report added. 

  • Related Articles

    CDPQ will join the B2B SaaS start-up's board of directors upon closure of this funding round

    CleverTap Raises $105 million in Series D Funding Round Led by CDPQ

    Existing investors Elevation Capital and Matrix Partners India also participated in the funding round

    Fintech Jodo raises $15 million in Series A led by Tiger Global

    LC Nueva Investment Partners led the seed extension round

    Fintech Credit Fair raises $10M