FINTECH

OPPORTUNITY IN
NEW INDIA
 INDIAN FINTECH AT A GLANCE
Consumer Fintech Adoption FinTech Market Size (Valuation)
India 87%
% 150
China 87% .5
24
–
R
Mexico 72% AG
C
UK 71%
50
Singapore 67%
Brazil 64%
USA 46% Market Value ($ BN)
Japan 34%
2020 2025

#3 #3 $1.3 TN 6,244

No. of Fintech Fintech Ecosystem Fintech TAM Fintechs Created

Startups globally by Market Size by 2025 since 2014
Source: BCG, FICCI, Tracxn, India Inc., TAM – Total Addressable Market
 INDIAN FINTECH AT A GLANCE
~$30 BN of Funds Raised since 2014 Major Business Models Funded – Share of funding
12 30 Others

Neobanking
8
15 Insurtech

4 Investment Tech

Alternate Lendng
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 Payments
(YTD)
Funding Amount ($ BN) Total Funding Raised ($ BN)

14% #2 23 1/5
Share of Global Deal volume FinTech Startup Unicorns
Fintech Funding in Fintech Space Unicorns from Fintech
Source: Tracxn, Funding includes non-equity, debt rounds
 FINTECH GROWTH DRIVERS: INDIA
Demographics
Sizable Working Population Emerging Households to drive demand through upward mobility
# of HHs (MN) in different income brackets
10% 11%
60+ Annual HH Income (S) 2021 FY21-26P CAGR
22% 23% (#HH growth)

40-59 Well-to-do 1.7%

>$14,200 34
33% 33%
20-39
Emerging 3.3%
154
$3,500 - $14,200
35% 33% 0-19
Low-income
117 -2.3%
2020 2025P <$3,500

28 yrs 40% 4.3X 4X

Avg. Age Urban Residents Rural Consumption Growth Income Growth
2021 by 2030 Per Capita, 2019-2030 2019-2030
Source: RedSeer, WEF
 FINTECH GROWTH DRIVERS: INDIA
Digitization
Lowest Data Costs Globally ($/GB) Next Billion Users
1100
4.2 975
887
3.3 825 2015
650 2020
1.4 525
2025P
0.7
288 2030P
223

India UK USA World Avg Smartphone users (MM) Internet Users (MM)

#2 #2 #2 40.3%
Smartphone Users Internet Users App Downloads Rural Internet
Globally Globally Globally Subscribers
2022 2022 2021 2021

Source: RedSeer, WEF, App Annie, TRAI

FINTECH GROWTH DRIVERS: INDIA
Internet Economy
Growth in online shoppers aided by Digital Infra Key Internet Segments
300

180 160 FY18 eRetail eMobility

95
FY21

Online Transactors (MM) Online Shoppers (MM)

Hyperlocal Food Tech Travel and Stay

Growing Internet Economy
$1 TN Online Gross Transaction Value by 2030
1000

2021
eHealth & ePharmacies Entertainment
2025P
400
2030P
125

Consumer Internet GTV ($ BN)

*Consumer Internet includes: online retail of mobile, electronics, fashion, grocery, food-tech, fintech(ex-payments), eHealth, Bill Payments & Recharges, Stay, mobility, EdTech, Classifieds, etc.
Source: NASSCOM, Retail Sourcing report, Redseer report
 Fintech Growth Drivers: India
Government & Regulatory initiatives (1/2)
2010 2012 2014 2016 2018 2020 2022

Consent Layer
DigiLocker Account Aggregation

India Stack Cashless Layer

IMPS AePS UPI
Evolution

Paperless Layer
eKYC eSign VideoKYC

Presenceless Layer
Aadhaar

Source: TRAI, iSPIRIT

FINTECH GROWTH DRIVERS: INDIA
Government & Regulatory initiatives (2/2)

Key Institutional Mechanisms Supporting Innovation & Startups Foreign Investor support

Inter-ministerial Steering Regulatory Sandboxes Mid-Market Access

Committee on Fintech (RBI, SEBI, IRDAI, IFSCA) (UK, Italy, Germany, Switzerland)

Joint-Working Groups on Fintech Startup India Invest India – BFSI, LatAm Desk

State Fintech Policies & Hubs Regulatory Support Financial Inclusion

Tamil Nadu RBI – Fintech Dept. Jan Dhan Yojana – PM JDY

Telangana (T-Hub) IFSC – Global Fintech Hub PMJJBY

Maharashtra/ Project Development Cell – PMJAY

Mumbai Fintech Hub Fintechs (DEA)
 KEY SEGMENTS: PAYMENTS
India – Total Retail Digital Payments by value crossed $1Tn
1613 $50 Bn Payments Revenue by
2030
Others

Credit 1,700+ Transactions per

1049 Cards Second on UPI
Debit
778 Cards
UPI 53% Share of Fintech Funding
raised in Payments
493
Total
281
Key Unicorns

FY18 FY19 FY20 FY21 FY22*

Source: RBI, Jefferies, FY22 includes upto Aug’21 (annualized), RedSeer, NPCI, excludes NEFT
 KEY SEGMENTS: PAYMENTS
UPI Adoption – Expected to Rise 65% of overall payments to be digital by 2026
USD 7-8 Tn USD 15-16 Tn
65
60

40
35

73
63

16
2021 2026
FY19 FY22 FY26 (P)
Digital Cash
UPI PPI Internet Banking POS NACH NEFT ATM Cheque

>1 BN >260MM >5 MM 93%

Cards in Circulation PPI Cards POS Terminals Digital Payments via Mobile*
Source: RBI, * indicates by vol, BCG
 KEY SEGMENTS: INSURTECH
Customer preference shifting to digital modes for insurance
2nd largest InsurTech market in APAC
% customers preferring various channels for insurance
Agency

Banca
Digital Non-Life CAGR
48%
Bank Website FY21-26P
Insurer/Aggr.
Website

Life Health General

12X Digital Premium Collection
Growth by FY25
Fastest Growing Fintech segment*
% agents responding positively for technology usage
Virtual customer outreach Key Unicorns
Managing renewals virtually
Servicing customers virtually

Source: Jefferies, India Insurance Survey, IRDAI, * Market Size CAGR 2021-25
 KEY SEGMENTS: DIGITAL LENDING

Digital Lending recorded 3X growth in funding Personal Loan Origination to grow at 27% CAGR (FY21-26)
Digital Lending to grow at ~48% CAGR
164
1.2

Traditional
0.7 Lending ($ BN)
0.6
0.5
0.4

Digital Lending ($
50 BN)
India Digital Lending Deals ($ Bn)
18
2017 2018 2019 2020 2021 Total

FY16E FY21E FY26P

$515 Bn 30%
Key Unicorns
Digital lending market Share of Online in Retail Loan
by 2030 Origination by FY26
Source: Jefferies , Tracxn, Inc42 Plus, Zest Money, RedSeer, Goldman Sachs
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