DIGITAL & TRENDS

Digital lending in India

 Table of Contents

01 Fintech overview 04 Startup ecosystem

Countries with the most fintech unicorns in the world 2024 03 Top funded FinTech firms in India Q2 2023, by segment 22
Number of funding deals for startups in India 2023, by city 04 Funds raised by digital lending startups in India 2014-2022, by segment 23
Revenue of fintech market in India 2021 and 2030, by segment 05 Funds raised by digital consumer lending startups in India 2014-2023 24
Distribution of fintech acquisition in India 2022, by segment 06
05 Key players
02 Credit market Leading lending start-ups in India 2024, by select company 26
Annual growth of loans in India FY 2019-2023, by financial institution 08 Revenue of Lendingkart in India FY 2019-2023 27
Increase in demand for long term credit in India H1 2023, by sector 09 Revenue of MobiKwik FY 2017-2023 28
Share of payment systems India FY 2024 10 Revenue of InCred in India FY 2018-2022 29
Lending interest rates in India 2007-2022 11 Pine lab's operating revenue FY 2018-2023 30
Number of credit card transactions in India FY 2019-2028 12 PB Fintech's net profit FY 2018 to FY 2023 31
Household debt value across India 2010-2024 13

03 Digital lending market

Estimated share of fintech market size in India 2030, by segment 15
Digital lending value in India 2012-2023 16
Share of digital lending in total lending market in India 2018-2022 17
Distribution of new to credit customers in India 2023, by lender type 18
Share of digital lending in India 2022, by loan types 19
Finance app downloads India Q4 2023, by category 20

1
CHAPTER 01

Fintech overview
 Number of fintech unicorns worldwide as of February 2024, by country
Countries with the most fintech unicorns in the world 2024

Number of unicorns
0 20 40 60 80 100 120 140 160 180
United States 166

United Kingdom 30

India 22

China 15

Germany 10

Israel 10

Brazil 9

Canada 8

France 8

Singapore 8

Indonesia 6

Sweden 6

South Korea 5

Australia 4

Japan 4

3 Description: The United States ranked first in terms of the number of fintech unicorns globally as of February 2024, having over five times more of these companies than the United Kingdom, which ranked second. The U.S. counted 166
fintech unicorns in the country. The United Kingdom ranked second with 30 fintech unicorns, followed by India with 22. Read more
Note(s): Worldwide; February 1, 2024
Source(s): Website (courses.cfte.education)
 Number of funding deals for startups in India in 2023, by city
Number of funding deals for startups in India 2023, by city

Number of deals
0 50 100 150 200 250 300 350 400 450 500

Bengaluru 433

Delhi-NCR 217

Mumbai 142

Chennai 39

Pune 35

Hyderabad 30

Ahmedabad 17

Kolkata 10

Jaipur 10

Kochi 6

Patna 2

4 Description: In 2023, startups in the city of Bengaluru of India struck 433 funding deals with nearly 6.2 billion U.S. dollars worth of funding, followed by Delhi-NCR with 217 deals. Cities like Jaipur and Kochi have also been emerging in the
Indian startup ecosystem. Read more
Note(s): India; 2023
Source(s): ENTRACKR; TheKredible
 Revenue of fintech market in India in 2021, with projection for 2030, by
segment (in billion U.S. dollars)
Revenue of fintech market in India 2021 and 2030, by segment

2021 2030

120

105
100
Revenue in billion U.S. dollars

80

60 54

40 36

20
8 8
3 2.37 2.2
0.2 0.4
0
Lending Payments Insurtech Wealth tech Neo-banking

5 Description: In the year 2021, the lending sector of fintech market in India earned a total revenue of eight billion U.S. dollars. This was projected to rise to 105 million dollars in the year 2030. The fintech market in India was undergoing
expansion and expected to grow multiple folds in the next decade. Read more
Note(s): India; 2021
Source(s): Chiratae Ventures; EY
 Distribution of fintech acquisition in India in 2022, by segment
Distribution of fintech acquisition in India 2022, by segment

Open Banking 2.2% Insurance 2.2%

Edtech 4.4%

Lending 6.7%

Enabler 37.8%
Wealth 17.8%

Payments 28.9%

6 Description: In 2022, a total of 44 companies were acquired in the Indian fintech sector. The majority of these acquisitions were in the enabler segment with a share of 37.8 percent, followed by the payments segment with a share of 28.9
percent. The open banking and insurance sectors had the smallest share of 2.2 percent each. Read more
Note(s): India; 2022
Source(s): The Digital Fifth; Tracxn Technologies
CHAPTER 02

Credit market
 Annual growth of loans in India from financial year 2019 to 2023, by
financial institution
Annual growth of loans in India FY 2019-2023, by financial institution

Banks NBFCs

20%
18%
18% 17%

16%
14.3%
14% 13%
Year on year growth

12%
10.6% 10.3%
10%

8% 7.6%
6.3%
6% 5.4%
4.6%
4%

2%

0%
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

8 Description: During the financial year 2023, the year-on-year growth rate of both banks and non-banking financial companies (NBFCs) in India increased to 18 percent and 17 percent, respectively. In the last three financial years, loan
advances by NBFCs remained less than those by banks. Read more
Note(s): India; FY 2019 to FY 2023
Source(s): BCG India; Capitaline
 Increase in demand for long term credit in India from January to June
2023, by sector
Increase in demand for long term credit in India H1 2023, by sector

Share of resopndents
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Infrastructure (power, road, telecom, etc.) 80%

Textiles 65%

Food processing 60%

Metals, iron and steel 40%

Engineering goods 40%

Real estate 25%

Gems and jewellery 15%

Retail 10%

Auto and auto components 10%

Chemicals (excluding pharma) 10%

Mining and quarrying 10%

9 Description: According to a 2023 survey conducted among 24 banks from India, 80 percent of the surveyed banks indicated an increase in long-term credit demand for the infrastructure sector. 65 percent of the surveyed banks stated a rise
in long-term loans for the textiles sector. Read more
Note(s): India; January to June 2023; 24 banks
Source(s): FICCI; Indian Banks' Association
 Share of payment systems across India in financial year 2024, by volume
Share of payment systems India FY 2024

RTGS 0.16% Others 9.32%

USSD
AEPS 0.53%
0.19%
Closed
Mobileloop
banking
wallet
1.27%
0.2%
Internet banking 1.56%
Debit
Creditcard
card1.61%
2.07%
NETC 1.82%
NACH 2.31%

IMPS 2.78%

NEFT 3.98%
BHIM UPI 67.40%

PPI 4.81%

10 Description: In financial year 2024, the share of Bharat Interface for Money app that uses Unified Payments Interface (BHIM UPI) was the highest compared to other payment systems in India at over 67 percent. UPI is an instant real-time
payment system developed by the National Payments Corporation of India and facilitates inter-bank transactions. Read more
Note(s): India; FY 2024
Source(s): MeitY (India); NPCI; Reserve Bank of India; Various sources (banks)
 Lending interest rates in India from the year 2007 to 2022
Lending interest rates in India 2007-2022

14% 13.3%
13%
12.2%
12%
10.6%
10.2% 10.3% 10.3%
10%
10% 9.7% 9.5% 9.5% 9.5%
9.2%
8.7% 8.6%
8.3%
Lending rate

8%

6%

4%

2%

0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

11 Description: In the year 2022, lending interest rate in India stood at 8.6 percent. This was a slight reduction from last year's rate of 8.6 percent. Lending rate refers to the bank rate that generally caters to the short- and medium- term
financing needs of the private sector. Read more
Note(s): India; 2007 to 2022
Source(s): IMF; World Bank
 Number of credit card transactions in India from financial year 2019 to
2023, with estimates until 2028 (in millions)
Number of credit card transactions in India FY 2019-2028

14

11.9
12
Number of transactions in millions

10
9.1

8
6.9

6
5.1

4 3.6
2.9
2 2 2 2.2
2

0
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024* FY 2025* FY 2026* FY 2027* FY 2028*

12 Description: In the financial year 2023, there were around three billion transactions made via credit cards across India. This was estimated to rise to over 11 billion transactions in the financial year 2028 in the country. Whereas, the debit card
transactions were estimated to reach over four billion transactions that year. Read more
Note(s): India; FY 2019 to FY 2023; *expected values India's financial year begins in April and ends in March. For example, FY 2017 started in April 2016 and ended in March 2017. The values have been rounded Read more
Source(s): Website (pwc.in)
 Value of household debt across India from 2010 to 2024 (in billion U.S.
dollars)
Household debt value across India 2010-2024

700

617.26
600

486.68
Value in billion U.S. dollars

500
440.99
392.9
400
335.6
308.94
300 286.42
240.85
202.13
200 183.6
169.52
150.46 147.41 159.81
124.34
100

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

13 Description: In the financial year 2024, India's household debt reached around 671 billion U.S. dollars, an increase from previous year's figures. India's household debt has witnessed an upward trend in the last decade. Household debt
includes consumer durables, housing and other personal loans. Read more
Note(s): India; 2010 to 2024
Source(s): CEIC
CHAPTER 03

Digital lending market

 Estimated share of fintech market size in India in 2030, by segment
Estimated share of fintech market size in India 2030, by segment

Investment tech 3% Fintech SaaS 1.5%

Neobanking 9%

Payments 12%

Lendingtech 60%
Insurtech 14%

15 Description: The leading tech is anticipated to account for 60 percent of the total fintech market in India in 2030. It is followed by Insurtech and the payment segment each making up to over ten percent of the market size. The fintech market
in the country is estimated to grow over two trillion U.S. dollars by 2030. Read more
Note(s): India; 2022
Source(s): Inc42
 Value of digital lending market in India from 2012 to 2020, with estimates
until 2023 (in billion U.S. dollars)
Digital lending value in India 2012-2023

400

350
350
Digital lending in billion U.S. dollars

300
270

250

200
200

150
150
110
100
75
58
46
50 33
23
9 14
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

16 Description: Digital lending is one of the fastest-growing fintech segments in India and grew exponentially from nine billion U.S. dollars in 2012 to nearly 150 billion dollars in 2020. It was expected that the digital lending market would reach a
value of around 350 billion dollars by 2023. This business was mainly covered by fintech startups and non-banking financial companies (NBFC). Read more
Note(s): India; 2012 to 2020
Source(s): Experian Data Quality; EY
 Share of digital lending in total lending market in India from 2018 to 2022
Share of digital lending in total lending market in India 2018-2022

16%
15%

14%

12%
12%
Share of digital lending

10%
10%

8%
8%

6%
6%

4%

2%

0%
2018 2019 2020 2021 2022

17 Description: In 2022, digital lending accounted for 15 percent of India’s total lending market. This marked an increase from the previous year, during which the share of digital channel was 12 percent. Since 2018, the adoption of digital
channels for lending has been consistently on the rise. Read more
Note(s): India; 2018 to 2022
Source(s): The Digital Fifth; Various sources (RBI, CRIF high Mark, Chiratae Ventures)
 Distribution of new to credit customers in India in 2023, by lender type
Distribution of new to credit customers in India 2023, by lender type

40%
36%
35%

30%
Distribution of customers

25% 24%
22%

20%

15%

10%

5%

0%
Fintech NBFC Banks

18 Description: In 2023, the distribution of new credit customers in India was led by Fintech with 36 percent of customer share. It was followed by Non-Banking Financial Companies (NBFC) at 24 percent, and banks at 22 percent. Read more
Note(s): India; 2023
Source(s): Experian
 Share of digital lending in India from April 2022 to September 2022, by
loan types
Share of digital lending in India 2022, by loan types

120

100 96

80
Share of the loan

60

40

20

3 1 0
0
Personal loan Consumer loan Other products Business loan

19 Description: Between April 2022 and September 2022, personal loans dominated the digital lending market in India with a share of 96 percent based on volume. In contrast, other products, such as consumer loans, collectively constituted
only 4 percent of the total share. Read more
Note(s): India; April 2022 to September 2022; Volume of loans
Source(s): Inc42
 Number of finance app downloads in India in the fourth quarter of 2023,
by category (in millions)
Finance app downloads India Q4 2023, by category

Downloads in millions
0 20 40 60 80 100 120

Digital wallets and payment 111.08

Personal loans 92.86

Personal investing 63.81

Mobile banking 63.81

Other 39.67

Cryptocurrency trading 7.65

20 Description: Digital wallets and payment apps emerged as the most popular category of financial apps downloaded in India as of the final quarter of 2023, with over 100 million downloads. This was followed by the personal loans category.
The three leading finance apps in the country that year were PhonePe, Paytm, and Google Pay, all belonging to the digital wallet category. Read more
Note(s): India; Q4 2023
Source(s): Data.ai
CHAPTER 04

Startup ecosystem
 Funding distribution of FinTech companies in India in second quarter of
2023, by segment
Top funded FinTech firms in India Q2 2023, by segment

Share of funding
0% 10% 20% 30% 40% 50% 60% 70%

Lendingtech 62.5%

Banking 22.3%

Fintech Saas 5.4%

Investment tech 2.6%

Others 2.6%

22 Description: In the second quarter of 2023, Lendingtech was the most funded fintech segment with a share of over 62 percent. Banking was the second most funded segment with a share of 22 percent. Read more
Note(s): India; Q2 2023
Source(s): Inc42
 Funds raised by digital lending startups in India from 2014 to 2022, by
segment (in million U.S. dollars)
Funds raised by digital lending startups in India 2014-2022, by segment

Consumer lending B2B lending

1,400

1,212
Funding amount in million U.S. dollars

1,200
1,038
979
1,000

800 749
680

600

400 346
308
221 242
197
200 144 162 139
63
15 3 21 22
0
2014 2015 2016 2017 2018 2019 2020 2021 2022

23 Description: In 2022, startups in India’s digital consumer lending space secured 1.2 billion U.S. dollars in funding. The digital B2B lending sector also attracted over one billion U.S. dollars. Both segments experienced growth compared to the
previous year. Read more
Note(s): India; 2014 to 2022
Source(s): Inc42
 Funds raised by digital consumer lending startups in India from 2014 to
2023 (in million U.S. dollars)
Funds raised by digital consumer lending startups in India 2014-2023

3,500 3,323

3,013
3,000
Funding amount in million U.S. dollars

2,500

2,000
1,800

1,500

1,000 821
580
500 441
279
15 36 58
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023*

24 Description: In the first half of 2023, digital consumer lending startups raised 3.3 billion U.S. dollars in India. In 2022, this fintech sub-segment raised over three billion U.S. dollars. Funding in this segment had gradually increased from 2014
to 2023. Read more
Note(s): India; 2014 to 2023; *only includes first half of the year. Read more
Source(s): Inc42
CHAPTER 05

Key players
 Leading start-ups for digital lending in India in 2024, by select company
Leading lending start-ups in India 2024, by select company

Funding in million US dollars

0 50 100 150 200 250 300 350 400 450

Navi 427

InCred 318

MobiKwik 269

Lendingkart 232

NeoGrowth 138

Kissht 132

Indifi 124

BankBazaar 117

Simpl 83

CASHe 32.9

26 Description: As of April 2024, Bengaluru-based FinTech start-up was the most promising startup for digital lending with a total funding of over 427 million U.S. dollars. It was followed by Mumbai-based platform InCred with a funding of 318
million U.S.dollars. Read more
Note(s): India; as of April 2024; in terms of funding
Source(s): Tracxn Technologies
 Revenue of Lendingkart in India from financial year 2019 to 2023 (in
billion Indian rupees)
Revenue of Lendingkart in India FY 2019-2023

7.98
8

7
Revenue in billion Indian rupees

6.43

6
5.03
5 4.64

3
2.18
2

0
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

27 Description: In the financial year 2023, Indian digital lending company Lendingkart Finance Limited reported a revenue of nearly eight billion Indian rupees. The Ahmedabad-based NBFC (non-banking financial company) disbursed loans
primarily to small and medium-sized enterprises. Read more
Note(s): India; FY 2019 to FY 2023
Source(s): ENTRACKR
 Revenue of MobiKwik between financial year 2017 and 2023 (in million
Indian rupees)
Revenue of MobiKwik FY 2017-2023

6,000
5,600
5,432.19

5,000
Revenue in million Indian rupees

4,000 3,698

3,023
3,000

2,000
1,620

1,000 860
450

0
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

28 Description: The revenue of MobiKwik reached 5.6 billion Indian rupees in fiscal year 2023. This was a slight increase compared to the previous year. MobiKwik is an Indian-based digital wallet company founded in 2009. Read more
Note(s): India; FY 2017 to FY 2023; consolidated figures
Source(s): Business Insider
 Revenue of InCred Financial Services in India from financial year 2018 to
2022 (in billion Indian rupees)
Revenue of InCred in India FY 2018-2022

10

9 8.76

8
Revenue in billion Indian rupees

6
5.21
5
3.92
4
3.33
2.91
3

2
1.08
1

0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

29 Description: In financial year 2023, Indian digital lending company InCred Financial Services Limited reported a revenue of more than eight billion Indian rupees. The Mumbai-based NBFC (non-banking financial company) disburses home,
education, SME business, and two-wheeler loans. Read more
Note(s): India; FY 2018 to FY 2023; consolidated figures
Source(s): Website (incred.com)
 Operating revenue of Pine Labs from financial year 2018 to 2023 (in
billion Indian rupees)
Pine lab's operating revenue FY 2018-2023

14
12.81

12
Revenue in billion Indian rupees

10.17
10
8.46
8
7.26

6
4.92

4 3.32

0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

30 Description: In the financial year 2023, Indian merchant commerce Pine Lab's operating revenue was 12.81 billion Indian rupees, an increase from the previous year's revenue. Pine Labs is a merchant platform that helps businesses accept
multiple modes of payment. Read more
Note(s): India; FY 2018 to FY 2023
Source(s): YourStory
 Net profit of PB Fintech from financial year 2018 to 2023 (in billion Indian
rupees)
PB Fintech's net profit FY 2018 to FY 2023

0.5
0.19
0.1
0.0
-0.16
Net profit in billion Indian rupees

-0.5
-0.47
-0.74
-1.0

-1.5

-2.0

-2.5

-3.0
-3

-3.5
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

31 Description: In financial year 2023, PB fintech, the parent entity of PolicyBazaar, registered losses worth 0.7 billion Indian rupees. In comparison, the company had a net loss of 3 billion Indian rupees in fiscal year 2022. Read more
Note(s): India; FY 2018 to FY 2023; standalone figures
Source(s): Moneycontrol
 Sources

BCG India Various sources (RBI, CRIF high Mark, Chiratae Ventures)
Business Insider Various sources (RBI, The digital fifth, CRIF high mark)
Capitaline Website (courses.cfte.education)
CEIC Website (incred.com)
Chiratae Ventures Website (pwc.in)
Data.ai World Bank
ENTRACKR YourStory
Experian
Experian Data Quality
EY
FICCI
IMF
Inc42
Indian Banks' Association
MeitY (India)
Moneycontrol
NPCI
Reserve Bank of India
The Digital Fifth
TheKredible
Tracxn Technologies
Various sources (banks)

32