State Of Indian Fintech Report, Q3 2023 InFocus: Consumer Lending by Inc42 Media

REPORT Q3 2023 INFOCUS

CONSUMER LENDING

India’s Digital Economy: Key Highlights

Fintech Market In India

Global Fintech Startup Ecosystem: India Vs The Us Vs China

InFocus: The Rise Of Consumer Lending Startups In India Consumer Lending Market Opportunity Consumer Lending In India: A Landscape India Vs Global Landscape India’s Lendingtech Opportunity Across Age Groups

India’s Fintech Landscape

Fintech Funding Trends

Consumer Lending In India: Core Segments & Offerings Factors Fueling Rise Of Consumer Lending Startup Funding Trends

Quarterly Funding Trends Top Indian Fintech Subsectors In Q2 2023 Top Indian Fintech Startup Hubs In Q2 2023 Fintech M&As Trends Notable Fintech Startup Investors In Q2 2023

Consumer Lending In India: A Sentiment Analysis

Fintech Startups’ Stock Performance

Fintech In India: Key Challenges

India To Have 900 Mn+ Active Internet Users By 2025 By 2025, 56% of all new internet users will be from rural areas, and 65% of new internet users will be female 2022 Smartphone users

Internet users

Urban internet users

Rural internet users

931 Mn+

759 Mn+

360 Mn+

399 Mn+

SOURCE: IAMAI, INC42 ANALYSIS

2025 (E)

1.1 Bn+

900 Mn+

396 Mn+

504 Mn+

% Growth (Absolute)

22%

19%

Internet Penetration (Active Users)

5G Enabled Indian Cities/towns

52%

7K+

Urban Internet Penetration (Active Users)

Number Of Male Internet Users

71%

395 Mn

Cost Of 1GB Internet

Number Of Female Internet Users

$0.16

349 Mn

10%

26%

Fintech Market In India: Key Highlights ESTIMATED MARKET OPPORTUNITY (2030)

VENTURE CAPITAL

$2.1 Tn+

$27 Bn+

Total Addressable Market

Total Funding (2014 To Q2 2023)

Number Of Fintech Unicorns

18%

1440+

CAGR (2022 To 2030)

Deal Count (2014 To Q2 2023)

Number Of Fintech Soonicorns

Lendingtech

4.2K+

$74 Bn+

Most Lucrative Fintech Sub-Sector

Active Fintech Startups

Combined Valuation Of Fintech Unicorns

$270 Bn+

700+

$12.7 Bn+

Lendingtech Market Size

Funded Fintech Startups

Combined Valuation Of Fintech Soonicorns

Source: Inc42 Note: Fintech funding data for the US and China is sourced from Crunchbase Number of fintech unicorns in China is taken from CFTE

UNICORNS & SOONICORNS

Fintech Revolution In India: A $2.1 Tn Market By 2030 Lendingtech emerges as the most lucrative segment in the Indian fintech sector Sector & Segments

Market Size (2022)

Market Size (2030)

CAGR (2022 to 2030)

% Share Market Size (2030)

Overall Fintech Market

$584 Bn+

$2.1 Tn+

18%

Lendingtech

$270 Bn+

$1.3 Tn+

22%

60%

Insurtech

$87 Bn+

$307 Bn+

17%

14%

Payments

$165 Bn+

$253 Bn+

12%

Neobanking

$48 Bn+

$183 Bn+

18%

Investment Tech

$9.2 Bn+

$74 Bn+

30%

Fintech SaaS

$4.6 Bn+

$31 Bn+

27%

1.5%

Source: Secondary Sources, Inc42 Calculations Note: The total addressable market (TAM) shown above is calculated using a bottom-up approach for the overall fintech market size and top-down for the fintech segments mentioned

Global Fintech Startup Ecosystem: India Vs The US Vs China

Total Fintech Funding (2014-2022)

$25 Bn+

$241 Bn+

$96 Bn+

Startup Investment CAGR (2016-2022)

34%

72%

12%

Number Of Fintech Unicorns

132

$21.7 Mn+

$22 Mn+

$29 Mn+

Average Ticket Size Of Fintech Deals In 2022

Source: Inc42

India’s Fintech Startup Landscape: Who’s Who In Subsectors BANKING

Source: Inc42 Note: This is not an exhaustive list

FINTECH SAAS

INSURTECH

INVESTMENT TECH

LENDINGTECH

PAYMENTS

India’s Fintech Landscape: Key Players UNICORNS

SOONICORNS

GROWTH STAGE

Source: Inc42 Note: This is not an exhaustive list

Total Unicorns: 23

Total Soonicorns: 34

Combined Valuation: $74 Bn+

Total Funding: $16 Bn

Top Hub: Bengaluru

Combined Valuation: $12.7 Bn+

Total Funding: $5.5 Bn+

Top Hub: Bengaluru

Total Funded Startups: 243+

Total Funding: $9.3 Bn+

Top Hub: Bengaluru

Indian Fintech Startups: Funding Pyramid

241+ 458+

Late Stage Funding

$16 Bn+

Growth Stage Funding

$9.3 Bn+

Seed Stage Funding

$1.2 Bn+

604+

1,440+ No. Of Deals

Source: Inc42 Note: Bridge funding round not included in this analysis | Based on startup funding deals recorded between 2014 and Q2 2023

Total Funding

$27 Bn+ Total Funding

30.0

1500

20.0

1000

10.0

500

0.0

Deal Count

Funding Amount ($ Bn)

$27 Bn+ Raised By Indian Fintech Startups Since 2014

2014

2015

2016

2017

2018 Funding Amount

Source: Inc42 Note: 2023 data is for the period between January 1 and August 31, 2023

2019

2020

Deal Count

2021

2022

Upto Aug 2023

The State Of Fintech Funding In India

Total Funding Funding Deals Mergers & Acquisitions Average Ticket Size Source: Inc42

Q2 2023

Q1 2023

Q4 2022

$896 Mn+

$1.2 Bn+

$429 Mn+

(-42% YoY)

(-26% YoY)

(-87% YoY)

39+

29+

31+

(-49% YoY)

(-64% YoY)

10+

(+14% YoY)

(+11% YoY)

(-50% YoY)

$27 Mn

$44.5 Mn

$15.8 Mn

(+9%)

(+83%YOY)

(-61% YoY)

Fintech Funding For Indian Startups Stumbles In Q2 2023

1000

Source: Inc42

Deal Count

3 02 1-2

20 4-

20 3Q

2 02

1-2

20 3Q

Q 4-

21 20 2-

02 1-2

20 4Q

20 20 2-

1-2

Q 3-

19 20 2-

01 1-2 Q

Funding Amount

Deal Count

2000

3000

100

4000

Funding Amount ($ Mn)

Funding deals recorded a 48% YoY decline In Q2 2023

Median Ticket Size For Fintech Deals Stood At $4.9 Mn In Q2 2023 12.0

10.0

8.0

6.0

4.0

2.0

23 20 2Q

1-2

22 Q

22 20 2Q

1-2

21 Q

21 20 2Q

1-2

20 Q

0 02 1-2 Q

19 Q

9 01 1-2 Q Source: Inc42

0.0

More Than 50% Of Fintech Deals Valued Less Than $6 Mn In Q2 2023 50 41 40 30

27 24

24 20

11 10

9 5

Re vfi

aL ife

Funding Amount ($ Mn)

i .a

un d

ly Fu nd

om H C SI BA

Ed uF

an e

tle

n C

Ka rm

a ap i Sc

iro

lo XF

ee t

k sa

er es t

iF va nt A

Source: Inc42 Note: Any deal with value above $20 Mn and less then $1 Mn is considered outlier

gk in nd

Tr an

an ce

a tr

om vi A

fi di In

Le n Le

ap i

Lendingtech Most Funded Fintech Sub Sectors In Q2 2023

Others 2.6% Investment Tech 2.6% Fintech SaaS 5.4%

23 24

$896 Mn+ Total Funding

584 Banking 22.3%

Source: Inc42

200

Lendingtech 65.2%

Lendingtech Leads Fintech Sub-Sectors In Deal Count For Q2 2023 Others 12.8%

Payments 12.8%

Lendingtech 38.5%

39+ Deal Count Investment Tech 7.7%

Fintech SaaS 23.1% Source: Inc42

Banking 5.1%

Fintech Funding In Q2 2023 – A Stage Wise Outlook 1000

Funding Amount ($ Mn)

750

-66% YoY

+15% YoY

500

250 -33% YoY

Late Stage

Growth Stage Q2-2022

Source: Inc42

Bridge Stage Q2- 2023

-61% YoY

Seed Stage

Fintech Funding In Q2 2023 – A Stage Wise Outlook 40 -44% YoY 30

Deal Count

-3.4x YoY

20 -46% YoY -13% YoY

Late Stage

Growth Stage Q2-2022

Source: Inc42

Bridge Stage Q2- 2023

Seed Stage

Bengaluru And Delhi NCR Topped The Fintech Funding Charts In Q2 2023

Bengaluru

Delhi NCR

Bengaluru

Mumbai

Others

10 Deal Count

Source: Inc42

100

200

300

Funding Amount ($ Mn)

400

500

Face-Off In Exits Through M&A Continues M&A in fintech sector reported an 2.6x increase from the lowest value in Q2 2020 10

Source: Inc42

3 02

Q 1-2

22 20 4-

20 3Q

1-2

21 20

Q 4-

20 3Q

1-2

20 3Q

0 Q

1-2

19 20

20 3Q

Q 4-

19 20 2Q

1-2

Active Indian Fintech Investors In Q2 2023 Investor

Startups

Kunal Shah

Source: Inc42 Note: This is not an exhaustive list | Investors who participated in most number of fintech funding deals have been included in this analysis. This list is not a ranking of any kind.

InFocus The Rise Of Consumer Lending Startups In India

Digital Consumer Lending: A $720 Bn+ Opportunity In India By 2030 Consumer lending market to grow at 22% CAGR between 2023 to 2030

Consumer Lending Market Opportunity ($ Bn)

800

600

22% CAGR 2022 To 2030 400

200

2023

2030

Digital Consumer Lending Landscape Personal Loan

BNPL

Source: Inc42 Note: Players included in the landscape are not pure play in nature | This is not an exhaustive list

Gold Loan

Retail Cards

How Digital Consumer Lending Works In India India Stack: End to End Digital Lending Now a Reality CONSUMER LENDING END-TO-END DIGITAL EXAMPLE

INDIA STACK

(30 second sanction and immediate disbursement)

Presence-less Layer Customer Requests for financing

Basic info and eKYC

Customer requests for a retail loan

Digital data capture; Aadhaar number triggers eKYC

Credit bureau check Automated check of customer credit behavior

Cashless Layer

Online fee collection Automated calculation and collection of fees ( bank, credit card)

Digital disbursement details Disbursement docs digitally generated

Source: BCG

Automated sanction Automated rules check using customer and external data

Digital signature & stamping Customer digitally sing; digital stamping of documets

Ecosystem data Addnl. detail from ecosystem (e.g., income surrogate data)

Instant disbursement Funds disbursed instantly to account

Paperless Layer

Consent Layer

India’s Lendingtech Opportunity Across Age Groups Age Groups (Digital Lending Consumers)

Total Population

Ideal Digital Lending Products

18 to 24

250 Mn (17.78%)

BNPL, Instant Loans

233 Mn (16.55%)

BNPL, Supply Chain Financing Invoice Financing, Corporate Cards, Line Of Credit, SMB Lending, P2P, Instant Loans

202 Mn (14.34%)

BNPL, Supply Chain Financing, Invoice Financing, Secured Lending, Corporate Cards, Line Of Credit, Smb Lending, P2P, Instant Loans, SMB Lending

45 to 54

154 Mn (10.97%)

Supply Chain Financing, Invoice Financing, Secured Lending, Corporate Cards, SMB Lending

55 to 64

113 Mn (8.00%)

Secured Lending, Corporate Cards

Above 65 years

98 Mn (6.97%)

Secured Lending

25 to 34 35 to 44

Source: Inc42 and multiple secondary sources

Digital Lending In India: Key Segments By Market Share Personal loans have the highest market share in both volume and value % Market Share (by Volume)

% Market Share (by Value) 66% 96%

95%

91%

45% 40%

27%

24%

17%

Apr’20- sep’20

Apr’21- sep’21

3% 0%

Source: Equifax

8% 9%

Apr’22- sep’22 Business Loan

10%

17%

Consumer Loan

Apr’20- sep’20 Personal Loan

Apr’21- sep’21 Other Products

Apr’22- sep’22

Digital Lending In India: Key Segments By Average Ticket Size

Average Ticket Size Of Loan

8,36,285

5,22,924 4,78,118

61,399

7,105

7,821

7,094

Apr’20- sep’20

Apr’21- sep’21

Apr’22- sep’22

Business Loan Source: Equifax

57,528

47,154

29,694

185,786

156,055

Consumer Loan

Personal Loan

Other Products

Factors Fueling The Growth Of Digital Consumer Lending In India Internet Penetration At 48.7% In The Country 173 Mn Households To Have Annual Income Above INR 5 Lakhs By 2030 As Of July 2022, 78 Mn Credit Cards In Circulation Over 100 Funded Consumer Lending Startups In India Indian Consumer Lending Startups Have Raised More Than $3 Bn From 2014 To Q2 2022 Lending Market In India Saw A 19.7% Growth Rate In August 2023 Source: Inc42, Multiple Secondary Sources

Majority Personal Loans Disbursed In FY22 Were Under INR 1 Lakh

Percentage Of Originations Volume (Ticket Size)

100%

75%

50%

25%

FY18

FY19 10 Lakh+

Source: CRIF

FY20 5 Lakh- 10 Lakh

2 Lakh- 5 Lakh

FY21 1 Lakh-2 Lakh

FY22 <1 Lakh

Majority Of FY22 Personal Loans Valued Between INR 5 Lakh And INR 10 Lakh

Percentage Of Originations Value (Ticket Size)

100%

75%

50%

25%

FY18 10 Lakh+

Source: CRIF

FY19 5 Lakh- 10 Lakh

FY20 2 Lakh- 5 Lakh

FY21 1 Lakh-2 Lakh

FY22 <1 Lakh

$3 Bn+ Raised By Digital Consumer Lending Startups In India Since 2014 4000

Funding Amount ($ Mn)

3000

2000

1000

0 Source: Inc42

2014

2015

2016

2017

2018

2019

2020

2021

2022

H1 2023

The Covid Booster Shot For Indian Digital Consumer Lending Startups Consumer lending is growing at 73% CAGR from 2014 to 2022 1250

Funding Amount ($ Mn)

1000

750

500

250

2014

2015

2016

2017 Consumer Lending

Source: Inc42

2018

2019 B2B Lending

2020

2021

2022

Indian Digital Consumer Lending Startups Saw Massive Surge In Deal Count Post 2020 50

Deal Count

0 2014

2016

2018 Consumer Lending

Source: Inc42

2020 B2B Lending

2022

Personal Loan Startups Dominate The Funding Amount And Deals Chart

Gold Loan 0.2% BNPL 8.8% Retail Cards 8.8%

BNPL 7.1% Gold Loan 1.3%

158

292

$3 Bn+ Consumer Lending Funding Amount Since 2014

2,868

Personal Loan 86.3%

11 Retail Cards 4.9%

Personal Loan 86.7%

Source: Inc42

225+ Consumer Lending Deal Count Since 2014

196

Investors Backing Digital Consumer Lending In India Investor

Startups Rupeek, OneCard, Eduvanz Financing Aerem,SlicePay Avanti Finance,Rupeek, Streamsource Eduvanz Financing,Kissht, SlicePay LoanTap, Propelld, Upwards Fintech ePayLater, FlexMoney, MyShubhLife Indiagold, PaySense Liquiloans, BASIC Home Loan, HomeCapital SlicePay,Indiagold, PaySense Finomena, OneCard, ItzCash SlicePay, Easy MyShubhLife, ShopSe

Source: Inc42

Consumer Lending In India: A Sentiment Analysis In Association with

BNPL Players: App Functionality Takes Center Stage Top Priorities Of BNPL Customers

Simpl Takes The Lead With Best App Experience The graph presented below are based on a Likert scale of 1 to 10. A rating below 5 indicates dissatisfaction among consumers, while a rating of 6 and above signifies positive customer sentiment.

Customer Delighters (1-10 Scale)

Simpl

6 lazypay

Paytm Postpaid

Ola Money Postpaid

App Functionality

Ease Of Process

Loan Detail

Offers And Discounts

App Experience (1- 10 Scale)

Source: Clootrack, Inc42 Note: Based on 92K+ user reviews from app store, play store and Trust Pilot | All players included are not pure play BNPL | 10 BNPL players were part of the sentiment analysis but data of six was not unavailable.

For BNPL Users, Customer Care Tops The List Of Concerns Paytm Postpaid’s Customer Service Deemed The Least Satisfactory

What Matters For Customers?

Many BNPL providers struggle to provide transparent, swift, and user-friendly customer support for users seeking assistance. The graph displayed below uses a Likert scale ranging from 1 to 10, with 1 being the lowest and 10 the highest perception during the sentiment analysis. A score below 5 indicates consumer dissatisfaction.

Customer Concerns (1-10 Scale)

6 Simpl 4 lazypay Flipkart Paylater

Ola Money Postpaid Customer Charges And Fraud And Care Service Fee False Promise

Payment Option

Loan Limit

Paytm Postpaid 0

Customer Care Service (1- 10 Scale) Source: Clootrack, Inc42 Note: Based on 92K+ user reviews from app store, play store and Trust Pilot | All players included are not pure play BNPL | 10 BNPL players were part of the sentiment analysis but data of six was not unavailable | Fraud and false promise include: fraudulent activity, fraud application, money scam

User Sentiment Analysis: Ola Money Postpaid Least Favoured In Terms Of Charges & Fees The graph below is based on a Likert scale of 1 to 10, with 1 representing the lowest perception and 10 being the highest. A score below 5 indicates consumer dissatisfaction. Notably, no player surpasses a score of 5 in the sentiment analysis.

Simpl

lazypay

Paytm Postpaid

Ola Money Postpaid

Charges And Fee (1- 10 Scale) Source: Clootrack, Inc42 Note: Based on 92K+ user reviews from app store, play store and Trust Pilot | All players included are not pure play BNPL | 10 BNPL players were part of the sentiment analysis but data of six was not unavailable | Fraud and false promise include: fraudulent activity, fraud application, money scam

Digital Gold Players: What Customers Want The Most? Ease Of Process No.1 Priority For Customers

The graph below is based on a Likert scale of 1 to 10, with 1 representing the lowest perception and 10 being the highest. A score below 5 indicates consumer dissatisfaction.

Customer Delighters (1-10 Scale)

Rupeek Ranks No. 1 In Ease Of Accessing Gold Loans

Rupeek

Muthoot Finance

Loan Tap 2

BharatPe

Ease Of Process

Loan Details

Customer Care Services

User Interface

Source: Clootrack, Inc42 Note: Based On 15K+ user reviews from app store, play store and mouthshut | All players included are not pure play digital gold loan providers

Ease Of Process (1- 10 Scale)

Digital Gold Players: What Customers Want The Most? Digital Gold Loans Users Choose App Functionality Over Charges & Fee

The graph below is based on a Likert scale of 1 to 10, with 1 representing the lowest perception and 10 being the highest. A score below 5 indicates consumer dissatisfaction

Customer Concerns (1-10 Scale)

Rupeek Ranks No. 1 In App Functionality For Digital Gold Loan Users

6 Rupeek 4

Loan Tap

Muthoot Finance

BharatPe 0

App Functionality

Fraud And False Promise

Interest Rate

Payment Method

Charges And Fee

Source: Clootrack, Inc42 Note: Based On 15K+ user reviews from app store, play store and mouthshut | All players included are not pure play digital gold loan providers

App Functionality (1- 10 Scale)

Digital Personal Loans Startups Outpace Traditional Players In Ease Of Process The graph displayed below uses a Likert scale ranging from 1 to 10, with 1 being the lowest and 10 the highest perception during the sentiment analysis. A score below 5 indicates consumer dissatisfaction. Zenda Upwards Fintech Smartcoin Rupeek True Credits Rupeeredee Canara Bank Stashfin Slice Indusin Bank Union Bank 0

Ease Of Process (1- 10 Scale) Source: Clootrack, Inc42 Note: Based On 42K+ user reviews from app store, play store ,Trust Pilot, mouthshut | All players included are not pure play loan providers

Quicker Approvals, Faster Processing: The Digital Loan Apps' Edge The loan details, which encompass instant approval, processing time, and loan services, offer a distinct advantage to the digital personal loan ecosystem, making them highly beneficial for customers.

Customer Delighters (1-10 Scale)

Loan Details

Ease Of Process

Source: Clootrack, Inc42 Note: Based On 42K+ user reviews from app store, play store ,Trust Pilot, mouthshut | All players included are not pure play loan providers

App Functionality

Digital Loan Startups Surpass Conventional Players In Speed And Approvals The graph below is based on a Likert scale of 1 to 10, with 1 representing the lowest perception and 10 being the highest. A score below 5 indicates consumer dissatisfaction. Upwards Fintech True Credits Rupeek Smartcoin Rupeeredee Stashfin Slice Indusind bank Canara Bank Union Bank 0

4 Loan Details (1- 10 Scale)

Source: Clootrack, Inc42 Note: Based On 42K+ user reviews from app store, play store ,Trust Pilot, mouthshut | All players included are not pure play loan providers

For Digital Loan Users, Superior Service Takes The Front Seat The primary concern for digital personal loan customers is an effective, transparent, and prompt customer care service

Customer Concerns (1-10 Scale)

Customer Care Service

Interest Rate

Charges And Fee

Fraud And False Promise

Source: Clootrack, Inc42 Note: Based On 42K+ user reviews from app store, play store ,Trust Pilot, mouthshut | All players included are not pure play loan providers

Credit Score

Digital Personal Loan Users Cite Poor Customer Care As Top Concern The graph below is based on a Likert scale of 1 to 10, with 1 representing the lowest perception and 10 being the highest. A score below 5 indicates consumer dissatisfaction. Zenda Canara Bank Rupeek Upwards Fintech True Credits Stashfin HDFC Bank Bank Of Baroda Axis Bank Supermoney 0

Customer Care Service (1- 10 Scale) Source: Clootrack, Inc42 Note: Based On 42K+ user reviews from app store, play store ,Trust Pilot, mouthshut | All players included are not pure play loan providers

Digital Loan Startups Have Better Interest Rates Compared To Conventional Players The graph below is based on a Likert scale of 1 to 10, with 1 representing the lowest perception and 10 being the highest. A score below 5 indicates consumer dissatisfaction. Upwards Fintech Smartcoin Rupeek Indusin Bank True Credits Slice Rupeeredee 0

Interest Rate Sentiment (1- 10 Scale) Source: Clootrack, Inc42 Note: Based On 42K+ user reviews from app store, play store ,Trust Pilot, mouthshut | All players included are not pure play loan providers

Listed Fintech Startups’ Stock Continue Positive Momentum Percentage Change In Stock Price

80% 60% 40% 20% 0% -20% -40% OCT 2022

JAN 2023

7SYVGI 27) -RG 2SXI 0EXIWX WXSGO QEVOIX HEXE EW SR 3GXSFIV XL

FEB 2023

MAY 2023

AUG 2023

JUN 2023

LTP

(YTD) Price diff.

(YTD) % change

Fintech In India: Key Challenges Fraudulent Activities The rising incidence of fraudulent activities and deceptive schemes poses a significant risk to India's burgeoning fintech sector. As digital transactions become increasingly prevalent, malevolent actors continually devise new ways to exploit vulnerabilities in the system. This emphasises the immediate need for robust security protocols and vigilant oversight within the fintech landscape to safeguard both consumers and the credibility of digital financial operations.

Technological Disparities Between Legacy Financial Institutions And Fintechs Traditional financial institutions such as banks often have outdated technology infrastructures that may not seamlessly integrate with modern digital lending platforms. This disconnect impedes the efficacy of partnerships between digital lenders and conventional financial systems, reducing financial inclusivity and affecting profitability.

Building Consumer Trust and Increasing Awareness Fintech startups, particularly those in the realm of digital lending, encounter challenges in securing consumer trust, notably in Tier 2 locations and beyond. Public unfamiliarity with digital financial services and a preference for face-to-face interactions have compelled fintech firms to adopt an omnichannel strategy.

Escalating Customer Acquisition Costs Heightened competition within the fintech sector has led to an increase in marketing expenditures aimed at attracting new customers. Such increased outlays contribute to cash burn and adversely affect a company's bottom line.

Attracting and Retaining Skilled Talent The rapid expansion in fintech has given rise to a growing demand for professionals with specialist skills in areas such as data analytics, financial services, and software development. The industry requires a highly-skilled workforce for both innovation and effective execution to transpire. Source: Inc42

Methodology Funding data is for the period between 2014 and Q2 2023 Seed stage: Startup at angel or seed stage Growth stage: Startups at Series A and B funding stage Late stage: Startups at Series C or above funding stage Bridge funding: Connecting funding rounds (in this case primarily Pre Series A & B) Unicorn refers to any digital / tech company valued at or above $1 Bn (we also include companies which have ever received $1 Bn valuation, even if they lost the unicorn status later) A soonicorn is any public or private digital/tech company valued at or above $200 Mn. Data in some sub sectors may differ from previous reports because our sector thesis was updated in 2023

Inc42 Fintech Sub Sector Segmentation: Insurtech: Technology-driven innovation in the insurance industry. Banking: Financial services provided by fintech startups Payments: Systems and solutions for facilitating financial transactions. Lendingtech: Technological advancements in lending and borrowing processes. Investment Tech: Technology applied to investment and wealth management. Fintech SaaS: Fintech solutions offered as Software as a Service (SaaS). Crowdfunding: Raising funds from a large number of people, often via online platforms. Calculating the Total Addressable Market (TAM) for LendingTech involves a multi-faceted analysis. Firstly, the anticipation that the overall LendingTech market will expand to $1.3 trillion by 2030 signals a substantial market opportunity. This projection reflects several factors, including the surging growth in consumer lending, which holds immense potential. Specifically, the growing consumer lending sector in India, driven by increasing consumer penetration, contributes significantly to this outlook. Furthermore, the estimate that consumer lending is set to capture 55% of the entire lending market by 2030, equivalent to $720 billion, highlights its dominant role within the industry. Notably, the current landscape reveals that personal loans already constitute 66% of all loans, underscoring the existing traction in this segment. Consequently, when calculating TAM for LendingTech, we consider these elements in tandem, acknowledging the substantial and expanding market opportunity driven by the growth and dominance of consumer lending. Source: Inc42

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