India fintech a $400B value creation opportunity by 2030
About 84% of survey respondents expect fintechs to dominate the future, with SME lending, retail lending, fintech SaaS, and wealth experiencing most growth.
India's fintech ecosystem, which accounts for 18-20% of the addressable financial services revenue pool, is expected to reach an annual revenue scale of $70 billion by FY30, according to a new report.
Elevation Capital, with McKinsey & Company as Knowledge Partner, released The Bottomline: Elevation Fintech Report 2023, providing a macro view of fintechs in India and their impact on the financial services ecosystem.
It captures insights from a survey of more than 70 industry experts and conversations with over 20 industry leaders, including Ajay Rajan (Head of Digital and Transaction Banking, Yes Bank), Anup Agarwal (Co-founder and CEO,), Anurag Sinha (Co-founder, ), Archit Gupta (Founder and CEO, ), Asish Mohapatra (Co-founder and CEO, ), and Vijay Shekar Sharma (CEO, ), among others.
The report outlines $400 billion in value creation in fintech by 2030, with 4X growth from current levels. India has the third-highest number of fintechs globally, with fintech funding doubling since 2018 and capturing a 14% share of startup funding in 2022, it added.
According to Mridul Arora, Partner,, India is setting a global example with innovative fintech and financial services models, led by its digital population, DPI, and proactive regulators.
About 84% of survey respondents expect fintechs to dominate the future, with SME lending, retail lending, fintech SaaS, and wealth categories experiencing the most growth. However, for continued growth, fintechs must overcome challenges like sustainable profitability, regulatory compliance, and risk and security standards.
Furthermore, the report adds that fintechs capture 70% of digital payment transactions, an increase of 2.3X in FY22. The sector also holds 50% of active broking accounts on NSE, growing 4X from FY19 to FY22.
Insurtechs, particularly in motor insurance, have grown 5X from FY19 to FY22, and fintechs are capturing 5% of gross written premium underwritten. This share is expected to increase significantly over the next decade.
According to the report, the sector has gained significant market share in categories, including payment gateways, small ticket personal loans, and BNPL lending, driving 3-5% of India's financial services revenue. These companies have expanded access, set the bar on experience, defined efficiency paradigms, and enabled the modernisation of India's financial services by developing new tech stacks.
With more than 200 million users transacting via smartphones, 99% of the population has digital IDs via Aadhaar, and 300 million monthly eKYC transactions, UPI has grown to over 8 billion transactions per month, and over 100 million bills are paid via Bharat Bill Payment System. Additionally, 2 million account aggregator consent requests are processed per month.
Fintechs have significantly impacted India's financial services landscape, capturing material share in key categories like payment gateways, small-ticket personal loans, and BNPL lending.