The Indian finTech market is expected to log 10 times growth to achieve $1 trillion in assets under management (AUM) and $200 billion in revenue by 2030, a new report showed on Tuesday. Much of the growth will be driven in the digital lending market, which is expected to grow to $515 billion in book size by 2030, according to the report by Chiratae Ventures in collaboration with Ernst and Young(EY).

India is currently home to 21 finTech unicorns and factors like favourable demographics, growing technology adoption, higher disposable incomes and an aware customer is fuelling this growth. "The Indian finTech market has been a formidable global force, contributing to the largest share of unicorns in India. We have been a technology-first investor, having backed companies such as Early Salary, Kristal.ai, PB Fintech, ShopSe and Vayana, among others", said Sudhir Sethi, Founder and Chairperson, Chiratae Ventures.

India Is Currently Home To 21 Fintech Unicorns And Factors Like Favourable Demographics, Growing Technology Adoption, Higher Disposable Incomes And An Aware Customer Is Fuelling This Growth

Payments, digital lending, wealthtech, insurtech and neo-banking will contribute to the growth in the finTech space, with agri and proptech considered to be big bets. With five times growth in the digital tech talent, India has the opportunity to address the global digital skill gap and establish itself as the destination of digital and tech talent, the report noted.

"India is recognised as a strong finTech hub globally and is increasingly becoming a talent destination for finTech businesses", said Rajiv Memani, Chairman and Managing Partner, EY India. The buy now pay later (BNPL) model has become mainstream and is on an accelerated growth trajectory, emerging strong not only in B2C but also B2B payments space. "New asset classes, crypto and NFT, will also continue to attract investor interest as finTech's continue to solve for traditionally underserved customers", the report noted.