Lending Tech In India: The Rise Of Consumer Lending, Report 2020

Lending Tech In India: The Rise Of Consumer Lending, Report 2020

On an average 5.6 Mn credit cards are issued annually in India, growing at a compounded annual growth rate (2013-2019) of 24%. But that doesn’t tell the full story of the Indian lending market.

In recent years, consumer lending in India has witnessed a major upheaval with startups taking centre-stage thanks to innovative credit products and the advent of BNPL (Buy Now Pay Later) products for ecommerce. This has unlocked the buying potential of India’s new-to-credit consumers.

Our report provides a juxtaposition of the opportunity for B2B and B2C lending tech startups in India. Get a clear understanding of the overall lending tech market in India, understand demand mapping, the lending tech startup landscape, the state of NPAs in India’s leading digital lenders and more.

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Lending Tech In India: The Rise Of Consumer Lending, Report 2020

Quoted & Trusted By

the economist
business insider
cb insights
the huffington post
the economic times
live mint
the times of india

Key Highlights

120 Mn

Number Of Formally Employed Indians Without A Credit Card

$2.4 Bn

Total Funding In Lending Tech Startups Between 2014 to Q3 2020

$2.2 Mn

Median Revenue Of Lending Tech Startups In FY19


Funded Lending Tech Startups In India Are EBITDA Negative

Table Of Contents

  • Executive Summary
  • India’s Lending Tech Landscape
  • Consumer Lending: The Next Boom <br></br> Credit Demand
  • Credit Demand
  • Unaddressed Opportunity
  • B2B Lending
  • Market Opportunity In India
  • Funding Journey For India’s Lending Tech Startups
  • Funding And Deal Count
  • Segment-Wise Segregation: Funding Amount And Deal Count
  • Funding Stage-Wise Distribution
  • Funding Type Segregation
  • Average Ticket Size
  • Geographic Distribution
  • Top Investors in Lending Tech
  • Financial Performance
  • Revenue And Expenses Of Indian Lending Tech Startups
  • EBITDA Analysis
  • Challenges: The Growing Number Of Credit Defaults
  • Post-Covid Impact On Lending Tech Startups
  • The Impact Of Growing Formal Credit On Indian Economy
  • Increase In Productivity And Scale
  • Wider New Venture Opportunity
  • Increased Social Development
  • Methodology
  • Bibliography


As the Indian economy evolved from agrarian to a manufacturing and services-led economy, the lending ecosystem also changed from the formal sector to informal and unorganised lenders. While India’s banking system has sought to organise the age-old unorganised lending market through innovation and structure, instead of being the disruptor, traditional banks have been disrupted by technology startups. With demand for credit-based purchases in India growing in the past decade, lending tech startups are cashing in on the supply gap and serving the underserved through alternate data-based lending. The venture capital inflow in consumer lending tech startups has increased over five folds over the past four years, from $17 Mn (2014) to $81 Mn (Q3 2020). With over 120 Mn formally employed Indians without a credit card, the business opportunities for technology enabled consumer lending products remains high.

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