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

Datalabs by Inc42 Plus

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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Quoted & Trusted By

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

Key Highlights

With the increasing number of formal employment opportunities in India, the market opportunity for consumer lending tech products is poised to grow.

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

77%

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

Summary

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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