Indian fintechs to grow 10x and manage assets worth $1 trillion by 2030

  • India is now recognized as one of the largest fintech unicorn ecosystems, home to 21 fintech unicorns.
  • Increasing adaptation of technology, higher disposable income and a young population contribute to the growth of fintech which has big players like Payment, Credit, Simple etc
  • The growth of fintech in sectors such as agriculture, retail, healthcare and real estate technologies will also accelerate growth.

According to a report by Chiratae Ventures and EY, the Indian fintech market is expected to grow tenfold and have assets of up to $1 trillion in assets under management by 2030.

This growth will come through government initiatives such as Digital India, Smart City, UPI development, the report says.

Growth will be driven by the digital lending market, which is expected to reach $515 billion by 2030 and $200 billion in revenue.

“India is now recognized as one of the largest fintech unicorn ecosystems, home to 21 fintech unicorns as of March 2022,” the report titled “$1 Tn India FinTech Opportunity” states.

Growing adaptation of technology, higher disposable income and a young population are contributing to the growth of fintech which has big players like Paytm, Cred, Simpl, RazorpayInstamojo, Lendingkart and many more.

Popularity of ‘buy now pay later‘ (BNPL) has also fueled the growth of the B2C and B2B payments industry. Much like credit cards, BNPL systems allow you to purchase products in advance and pay the full amount in instalments.

According to TC Meenakshi Sundaram, co-founder and vice president of Chiratae Ventures, fintechs have broken new ground for underserved financial markets. The ecosystem was also favorable.

“These include rapidly growing digital adoption and mobile penetration on the back of the world’s cheapest data speeds offered by private telecom players, a conducive regulatory environment coupled with digital infrastructure (Aadhar, UPI, BBPS, etc.) and structural reforms and initiatives (GST, TReDSetc.),” Sundaram said.

Fintech has also expanded into sectors such as agriculture, retail, healthcare, and real estate technology. The report says payments, digital lending, wealth tech, insurtech and neo-banking will all drive growth in the fintech space with agri+fintech and prop+fintech seen as big bets.

“India is recognized as a strong fintech hub globally and is increasingly becoming a talent destination for fintech companies,” said Rajiv Memani, President and Managing Partner of EY India.

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