As per the forecast by early stage venture investor Elevation Capital, the Indian fintech sector will generate almost $400 billion in revenue over the next seven years, expanding four times from current levels. According to The Bottomline: Elevation Fintech Report 2023, the industry will access a revenue pool of about $70 billion by FY2030, out of the $620 billion total financial services revenue pool.

 

India currently boasts the third-largest fintech ecosystem in the world, behind the US and the UK, with over 9,000 fintech businesses, it noted. The research, which was released on Wednesday by Elevation Capital and top consulting firm McKinsey India, was created following interviews with more than 20 business decision-makers and a poll of more than 70 fintech innovators and industry insiders.

 

Insurtech unicorn Acko, lending firm Axio (formerly Capital Float), neobank Fampay, buy now pay later competitor Uni, and other startups have received funding from Elevation Capital, formerly known as Saif Partners.Retail loans and digital payments have gotten between $70 billion and $80 billion apiece. According to the research, the SME financing industry has brought in about $55 billion, while wealth management has brought in between $40 billion and $45 billion.

 

According to the research, equity injection increased from about $2 billion in 2018 to $6 billion in 2022. However, in terms of venture capital as a whole, 2023 has been a quiet year. Mridul Arora, partner at Elevation Capital, discussed the recent slowdown in the funding environment and said that the decline has worsened as a result of the preceding two years' hypergrowth.