Indian Fintech Industries To Generate $190 Billion In Revenue By 2030: Report The report noted that the Indian fintech industry was recovering from the funding winter faster than its global counterparts
By Teena Jose
Opinions expressed by BIZ Experiences contributors are their own.
You're reading BIZ Experiences India, an international franchise of BIZ Experiences Media.
Indian fintechs are expected to generate revenue to the tune of $190 billion by 2030, as market demand expands on the back of financial inclusion, according to a recent report from venture capital firm Matrix Partners and consulting firm Boston Consulting Group. The report titled 'The State of The Fintech Union 2023' is launched at the Global Fintech Fest.
"The Indian fintech ecosystem is moving from the 0-1 phase of finding PMF to the 1-10 middle journey. Fintechs are being asked tough questions, and rightly so, on building profitable sustainable business models with future-proof compliance and governance. Through our work, we are confident that fintechs are up for this challenge, and they're investing in the right long-term capabilities that help them scale with a strong foundation. We are already seeing scaled companies preparing to go IPO and look forward to their success," said Vikram Vaidyanathan, managing director, Matrix Partners India.
The report added that over 40% of fintechs surveyed were looking at a reduction of customer acquisition and marketing costs in a bid to conserve cash and achieve profitability, without compromising on their growth plans.
The focus on profitability and sustainability also comes as technology companies globally continue to face a funding drought, with the worsening of macroeconomic conditions and inflationary headwinds.
However, the report noted that the Indian fintech industry was recovering from the funding winter faster than its global counterparts.
Moreover, the report also revealed that 85% of investors in the fintech sector now cite profitability as their top criterion, followed by growth.
"Indian Fintech continues to command the 3rd largest share of the global funding and deal volume. Significant increase (2 times in 2023 v/s 2022) in the profitability outlook across Indian Fintechs observed. Fintechs in India are no longer opting for the acquire first, fix later approach of business build but have now started building businesses which are regulatory compliant by design from day zero. This will be an era of collective growth and collaboration between the Fintechs and incumbents," said Yashraj Erande, managing director and partner at BCG.
