According to a report released by Chiratae Ventures, in collaboration with Ernest and Young (EY), Indian financial technology (fintech) market is expected to record a 10x growth to achieve one trillion dollars in assets under management (AUM) and $200 billion in revenue. The report, titled ‘$1 Tn India FinTech Opportunity,’ highlighted that growth will be driven in the digital lending market, which is expected to grow to $515 billion in book size by 2030.
As stated by Sudhir Sethi, founder and chairperson, Chiratae Ventures, Indian fintech market contributes to the largest share of unicorns in India. “We have been a technology first investor believing in the power of both data and technology, and hence have backed companies such as EarlySalary, Kristal.ai, PB Fintech, ShopSe, Vayana, amongst others,” he added.
The report also highlights that ‘Buy Now, Pay Later’ has become mainstream and is on a growth trajectory, emerging not only in business-to-consumer (B2C) but also business-to-business (B2B) payments space. Co-lending to emerge as a model that supports lending partners to mitigate their risk exposure. New asset classes, cryptocurrency and non-fungible token (NFT) will also continue to attract investor interests as fintechs continue to solve for traditional customers. Technology based innovation of the insurance value chain will help deliver solutions for the market at affordable rates.
“FinTechs have innovated for the financial markets through an ecosystem, which will continue to keep accelerating growth and penetration of fintech in India. These include digital adoption and mobile penetration on the back of data rates in the world offered by private telecom players, to enabling regulatory environment coupled with digital infrastructure (Aadhar, UPI, BBPS etc.), and structural reforms and initiatives (GST, TReDSetc.). We also expect finTechs to continue solving for the sub-markets with solutions,” TC Meenakshi Sundaram, co-Founder and vice-chairperson, Chiratae Ventures, said.