Paytm turning profitable reflects the larger Indian fintech success story

Paytm turning profitable is just symbolic of how the fintech industry is performing in India. The next five years look promising for the industry. With young Indians increasingly getting interested in managing their finances and using digital solutions, fintech will continue to play a crucial role in bridging the financial inclusion gap between the urban and the rural.

Available data shows India is likely to become a fintech superpower by 2025 with the market size ballooning to the size of $1.5 trillion – easily making it a global fintech powerhouse.The fintech segments that are likely to witness massive growth include payments, digital lending, insurtech, and wealth-tech.  India itself is likely to reach $100 trillion in transaction volume and $50 billion in terms of revenue by 2030. 

In 2022, India’s lending market, which was at $270 billion in 2022 is also expected to hit $350 billion in 2023.  In parallel to the lending market, India is also considered one of the largest markets for insurance tech which is expected to grow by 15X to reach $88.4 billion by 2030. 

Meanwhile, India’s wealth-tech market is expected to grow to $237 billion by 2030, on the back of a growing base of retail investors. India is at the cusp of internet growth, mobile technology access which has created immense scope for first-time creditors as well.

What is driving growth in the sector is also the slimming gap between urban and rural markets because of widespread internet and smartphone access.
The fintech industry has also brought with it a big push for financial literacy backed by loan and credit apps. 

India’s fintech industry stands at a pivotal moment, trailing only the United States and China with 26 unicorns and 87 soonicorns. The next wave of fintech growth is to be propelled by the over 1,400 fintech companies that have already raised over $31 billion in funding – the sector has come of age. India currently has over 10,000 registered fintechs.