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Indian fintech to hit $200bn in revenue by 2030: Report

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BENGALURU: Indian fintech will touch $1 trillion in assets under management (AUM) and $200 billion in revenue by 2030, according to estimates by VC firm Chiratae Ventures and EY. A report by the two firms said the growth will be driven by the digital lending space that is expected to grow to $515 billion by 2030.
It said payments, digital lending, wealthtech, insurtech and neo-banking will all contribute to growth in the fintech space. India is the world’s third-largest fintech market, behind the US and China. Around 1,000 fintech firms have been funded with a cumulative $18 billion in funding in the last five years. India has over 21 fintech unicorns.
T C Meenakshi Sundaram, co-founder and vice-chairman of Chiratae Ventures, said the retail business and SMBs are not funded by the banking channel because there was no accurate date available. This is where fintech is making a mark. “It’s a high data play where fintech players are able to put multiple data points together and possibly come up with better underwriting capabilities. SMEs cannot afford high cost of capital and fintech players have a better way of underwriting and low-cost delivery. We expect $500-billion fintech-facilitated lending to be a large play, while wealth, insurtech and neo-banking will make up for $500 billion,” he said. Peer-to-peer (P) lending, SME financing, and short-term credit models are seen to be gaining strong momentum.
Sundaram said digital lending startups will continue to service SMEs, consumer lending will be driven with small-ticket unsecured products via P lending, BNPL (buy now, pay later), co-lending and other avenues.


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