Report Overview

India Fintech Market- Industry Trends & Forecast Report 2027

India fintech market was worth USD 53.5 billion in 2020 and is further projected to reach USD 147.6 billion by the year 2027, growing at the CAGR of 15.5% in the forecast period. The fintech market is one of the most promising sectors of the Indian economy and is growing at a high rate because of the increasing penetration of smartphones, growing internet access, and high-speed connectivity. Its expanding application in the banking sector also drives it market growth. Additionally, the launch of the 5G spectrum is anticipated to present growth opportunities to the market in the forecast period.

Source: BlueWeave Consulting

India Fintech Market- Overview

Fintech is a combination of the words "financial technology. It refers to the integration of computer programs and other technologies into banking and financial services to expand their scope and improve their delivery. Fintech is the integration of innovative technologies into financial services, such as artificial intelligence (AI), big data and data analytics, blockchain, Robo-advisors, etc. The fintech ecosystem encompasses a wide range of services, including payments, lending, wealth technology, and personal finance management.

India Fintech Market Forecast and Trends

Growth Drivers

Flourishing Startup and SMEs Culture

India is emerging as a major startup hub around the globe and is attracting foreign direct investment, which is boosting the growth of the India fintech market. There are currently over 3000 startups in India. A major reason for the explosive growth achieved by these players stems from government initiatives, such as GST, demonetization, and the payment stack. By creating these initiatives, the government created a promising market for fintech startups and, most importantly, transformed financial services for consumers. As Financial Express reported, the fintech sector of India emerged as the global leader in investment by signing up 33 deals valued at USD 647.5 million in 2020. Such investments are providing lucrative growth opportunities to the market.

Growing Popularity of Cloud Services

The expanding cloud landscape is presenting significant growth opportunities to the India fintech market. Cloud technology assists fintech companies by offering advanced security, service, innovation, and scalability. The application of the cloud in financial services provides robust access control and data encryption policies that protect financial data from malicious actions. Additionally, cloud computing provides scalability opportunities for the market because it eliminates the need for physical infrastructure, along with the increasing shift of businesses towards it. Thus, the combination of cloud and financial services is driving the growth of the India Fintech market.

Restraints

Poor Internet Connectivity and Unbanked Indian Population

India ranked 131 out of 138 countries in the global mobile internet speed rankings. The poor infrastructure in internet connectivity in India is one of the major restraining factors for the market’s growth.  According to some estimates, India has a low spectrum per subscriber compared to other countries. Additionally, unbanked Indians are another factor hindering the growth of the fintech market in India. According to estimates, approximately 48% of the Indian population does not have a bank account for conducting online transactions, which limits the market's growth.

Impact of COVID-19 on India Fintech Market

The unprecedented outbreak of the COVID-19 pandemic provided enormous growth opportunities to the India fintech market. In the midst of the sensitive times, businesses started adopting financial services to stay afloat. Moreover, rapid digitalization in the country after the lockdown period has led to a boom in digital financial services, especially with the growth of e-commerce. In the post-COVID-19 era, the India fintech market is predicted to flourish due to the growth in online transactions and the emergence of countless mobile apps and e-commerce stores.

India Fintech Market - By Service Propositions

Based on service propositions, the India fintech market is segmented into savings & investments, money transfer & payments, online insurance & insurance marketplaces, digital lending & lending marketplaces, and others (e-commerce purchase financing, etc.). Among these, the money transfer and payments segment hold the biggest market share as fintech companies look to establish themselves as online payment apps. Paytm is one of the biggest fintech companies in India, well known for its mobile wallet and payment app. Additionally, the fintech giant RazorPay (India's first full-stack financial solutions company), also acts as a payment gateway for over 8 million businesses such as Facebook, Ola, Zomato, Swiggy, etc.

India Fintech Market - By Application

Based on applications, the India fintech market is categorized into banking, insurance, and securities. The banking sector accounts for the largest market share as it is the fastest-growing sector in India and is significantly investing towards enhancing its infrastructure. Fintech products and services assist the banking sector to digitize their services and offerings, such as lending and borrowing money.  Moreover, Fintech companies also provide security, access, promotional features, and new customer profiling techniques, connecting lenders and borrowers. These benefits are boosting the overall fintech market of the country.

India Fintech Market - Regional Insights

Geographically, the India fintech market is segmented into North India, South India, East India, and West India. The fintech market in South India is dominated by a cluster of leading fintech companies and a large number of fintech startups. Bengaluru has around 432 fintech startups while Hyderabad has around 125 startups that are flourishing at a high rate. Furthermore, the Government of Andhra Pradesh has also established Fintech Valley Vizag, which is a self-sustainable global Fintech Ecosystem to promote businesses and attract investors. Such initiatives provide immense growth opportunities to the emerging fintech companies as well as the overall fintech market of the country.

India Fintech Market - Competitive Landscape

The leading players in the India fintech market are Lendingkart Technologies Private Limited, MoneyTap, Instamojo, Razorpay, Paytm, PolicyBazaar, Shiksha Finance, PineLabs, ZestMoney, ePayLater, and other prominent players.

The market is highly consolidated and dominated by a handful of industry participants such as Paytm, PolicyBazaar, Razorpay, etc. However, several other startups such as Slice and ZebPay are emerging with great potential and are giving tough competition to established market players. The companies constantly launch new products and services to expand their product portfolio and diversify their consumer base. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

• In December 2021, Fintech major Razorpay announced the launch of three new products. Magic Checkout saves and automatically prefills customer information. TaxPayment Suite enables businesses to automate tax payments by enabling them to calculate and pay their TDS, GST, and advance taxes in one place. Last but not least, RIZE launched by Razorpay is a platform that helps startups with all aspects of operations, including filing their first tax return, processing their first payroll, and providing them with tools to manage their sales, marketing, and finances.

Scope of the Report:

By Service Propositions

• Money Transfer and Payments
• Savings and Investments
• Digital Lending & Lending Marketplaces
• Online Insurance & Insurance Marketplaces
• Others (E-Commerce Purchase Financing, etc)

By Application

• Banking
• Insurance
• Securities

By Deployment

• On-cloud
• On-premise

By Region

• North India
• South India
• East India
• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Flourishing Startup And SMEs Culture
         2. Growing Popularity Of Cloud Services
      2. Market Restraints
         1. Poor Infrastructure for Internet Connectivity
      3. Market Challenges
         1. Unbanked Indian Population
      4. Market Opportunity
         1. Government Initiatives Towards Boosting Fintech Industry
         2. Rapid Growth In The Indian Banking Sector
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. India Fintech Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Service Propositions
         1. Money Transfer and Payments
         2. Savings and Investments
         3. Digital Lending & Lending Marketplaces
         4. Online Insurance & Insurance Marketplaces
         5. Others (E-Commerce Purchase Financing, etc)
      2. By Application
         1. Banking
         2. Insurance
         3. Securities
      3. By Deployment
         1. On-cloud
         2. On-premise
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on India Fintech Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Lendingkart Technologies Private Limited
   2. MoneyTap
   3. Instamojo
   4. Razorpay
   5. Paytm
   6. PolicyBazaar
   7. Siksha Finance
   8. PineLabs
   9. ZestMoney
   10. ePayLater
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: India Fintech Market Segmentation

Figure 2: India Fintech Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: India Fintech Market Size, By Value (USD Billion), 2017-2027

Figure 5: India Fintech Market Share (%), By Design, By Value, 2017-2027

Figure 6: India Fintech Market Share (%), By Application, By Value, 2017-2027

Figure 7: India Fintech Market Share (%), By Deployment, By Value, 2017-2027

Figure 8: India Fintech Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: India Fintech Market Size, By Design, By Value, (USD Billion), 2017-2027

Table 2: India Fintech Market Size, By Application, By Value, (USD Billion), 2017-2027

Table 3: India Fintech Market Size, By Deployment, By Value, (USD Billion), 2017-2027

Table 4: India Fintech Market Size, By Region, By Value (USD Billion), 2017-2027

Table 3: Lendingkart Technologies Private Limited Financial Analysis

Table 4: Lendingkart Technologies Private Limited Business Overview

Table 5: MoneyTap Financial Analysis

Table 6: MoneyTap Business Overview

Table 7: Instamojo Financial Analysis

Table 8: Instamojo Business Overview

Table 9: Razorpay Financial Analysis

Table 10: Razorpay Business Overview

Table 11: Paytm Financial Analysis

Table 12: Paytm Business Overview

Table 13: PolicyBazaar Financial Analysis

Table 14: PolicyBazaar Business Overview

Table 15: Siksha Finance Financial Analysis

Table 16: Siksha Finance Business Overview

Table 17: PineLabs Financial Analysis

Table 18: PineLabs Business Overview

Table 19: ZestMoney Financial Analysis

Table 20: ZestMoney Business Overview

Table 21: ePayLater Financial Analysis

Table 22: ePayLater Business Overview