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India's Fintech Startups Are Expected to Grow With a Wide Range of Users

By Chetan Majgaonkar --
Tuesday, 14 Nov, 2023

In an early-stage venture capital study, Elevation Capital, an early-stage venture capital firm, highlights the prospects available to Indian fintech businesses across several customer segments.

The research highlights four critical issues related to experience and expansion that fintechs need to address. It emphasized the significant potential that fintechs have to transform the way consumers from all market segments interact with and obtain financial services.

Four significant possibilities are presented in the McKinsey & Company research titled "Mapping A Billion - Understanding the Indian Fintech User" for fintechs to take advantage of by developing with users as the primary emphasis.

The study finds profitable client sectors, such as teenagers, foreign visitors, importers and exporters, NRIs, and self-employed professionals, each having a potential income of almost $1 billion. With 70% of retail deposits, 30% of retail lending assets, and 55% of investable assets, the wealthiest 1% of Indians control a sizable portion of the country's wealth. Serving this market might bring in $50–55 billion by 2022, and by 2030, it's expected to reach $80–100 billion.

Fintech can make a difference by giving affluent people specialized experiences and access to unique products. By 2030, there will be a $25–30 billion opportunity for the lending sector, which presently serves just 120 million of the 300 million potential customers. This is because less cash transactions and greater digital usage would promote economic development.

Elevation published the first section of the analysis in August, estimating that by FY30, the fintech ecosystem in India will generate $400 billion in value.

India's Fintech Startups Are Expected to Grow With a Wide Range of Users. In an early-stage venture capital study, Elevation Capital, an early-stage venture capital firm, highlights the prospects available to Indian fintech businesses across several customer segments.

The research highlights four critical issues related to experience and expansion that fintechs need to address. It emphasized the significant potential that fintechs have to transform the way consumers from all market segments interact with and obtain financial services.

Four significant possibilities are presented in the McKinsey & Company research titled "Mapping A Billion - Understanding the Indian Fintech User" for fintechs to take advantage of by developing with users as the primary emphasis.

The study finds profitable client sectors, such as teenagers, foreign visitors, importers and exporters, NRIs, and self-employed professionals, each having a potential income of almost $1 billion. With 70% of retail deposits, 30% of retail lending assets, and 55% of investable assets, the wealthiest 1% of Indians control a sizable portion of the country's wealth. Serving this market might bring in $50–55 billion by 2022, and by 2030, it's expected to reach $80–100 billion.

Fintech can make a difference by giving affluent people specialized experiences and access to unique products. By 2030, there will be a $25–30 billion opportunity for the lending sector, which presently serves just 120 million of the 300 million potential customers. This is because less cash transactions and greater digital usage would promote economic development.

Elevation published the first section of the analysis in August, estimating that by FY30, the fintech ecosystem in India will generate $400 billion in value.