India fintech market expected to touch $1 trillion in AUM by 2030: Report

CHENNAI: The Indian Fintech market is expected to record a 10X growth to reach $1 trillion in Assets Under Management (AUM) and around $200 billion in revenue, a report by VC firm Chiratae Ventures in partnership with EY shows.


The report titled ‘$1 Tn India FinTech Opportunity’ notes that much of the growth will be driven in the digital lending market, which is expected to grow to $515 billion in book size by 2030. Co-lending is all set to emerge as a preferred model that supports lending partners to mitigate their risk exposure, it added. Technology-based innovation on the underwriting side of the insurance value chain will also help deliver solutions for the unpenetrated market.

The study also pegs Buy Now Pay Later to become mainstream as it is on an accelerated growth trajectory, both in B2C and B2B payments space. "New asset classes such as Crypto & NFT will also continue to attract investor interest as fintechs continue to solve for traditionally underserved customers," the report said.

“Fintechs have innovated for the underserved financial markets through a strong and supportive ecosystem, which will continue to keep accelerating growth and penetration of fintech in India. These include fast-growing digital adoption and mobile penetration on the back of the cheapest data rates in the world offered by private telecom players, to enabling regulatory environment coupled with world-leading digital infrastructure (Aadhar, UPI, BBPS etc.), and structural reforms and initiatives (GST, TReDSetc.)," TC Meenakshi Sundaram, co-founder and vice chairperson, Chiratae Ventures, said.

India is now home to 21 fintech unicorns as of March 2022 thanks to various factors such as favourable demographics, growing technology adoption, higher disposable incomes among others.

With 5X growth in digital tech talent, India also has an opportunity to emerge as a hub of fintech talent and thereby establish itself as the destination of digital and tech talent.


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