Boston Consulting Group’s projections indicate that the Indian fintech sector is set for a robust future. Fueled by the growing demand for financial services and inclusion, these companies are poised to amass collective revenues of approximately $190 billion by 2030.
India has emerged as a fintech powerhouse, securing its place as the third-largest player in this industry globally, with the United States and China leading the way. This growth trend is further validated by a survey of 70 fintech founders and investors, which highlights the industry’s twin focus on expansion and profitability. Over 40% of respondents are actively exploring cost-saving measures in customer acquisition and marketing to achieve profitability while continuing to grow.
The sector has displayed an impressive 30% increase in capital inflow in the first half of this year compared to the latter half of 2022. Expectations are high for a wave of new companies and fintech IPOs, spanning payments, lending, and insurance segments.
The report also emphasizes the mounting importance of compliance in the maturing fintech landscape. Regulatory scrutiny has intensified, prompting digital credit firms to seek non-banking finance company licenses and payment fintechs to pursue payment aggregator status.
India’s position as a dominant player in the Asia Pacific fintech arena over the next decade appears indisputable. Revenues are projected to grow annually by more than 35%, eventually exceeding $190 billion by 2030. Fintech profitability has undergone a significant enhancement, rising from 20-30% in 2022 to a more robust 40-60% at present.