India Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2024 Update

According to the publisher, BNPL payments are expected to grow by 16.0% on an annual basis to reach US$ 19.36 billion in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.8% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$ 16.69 billion in 2023 to reach US$ 32.33 billion by 2029.

The BNPL industry is expected to grow at a steady pace over the medium term in India. The higher credit demand, among underbanked and underserved consumers, is supporting the uptake of BNPL products. This trend is projected to continue further in India in 2024. The booming e-commerce sector will also provide growth support to the Indian BNPL market over the medium term.
New entrants in the market are also raising funding rounds to scale their product offerings. While the market is poised for growth, rate hikes, and margin pinch have put BNPL firms in a tough spot. In Q4 2023, a few of the providers shut down BNPL services due to higher NPAs and growing losses. In the long term, however, the industry is expected to report strong growth due to rising demand and an improving macroeconomic environment.

BNPL startups are raising funding rounds to ramp up technology and drive adoption in India

The credit demand is growing at a rapid rate among consumers in India. The higher inflation and decline in disposable income are driving the credit demand. Consequently, to reach more consumers, BNPL firms are raising funding rounds from venture capital and private equity firms.

• SalarySe, the BNPL-focused financial services app, announced that the firm had raised US$5.25 million in a funding round in January 2024. The capital round was led by Surge Ventures and included participation from other investors like Pravega Ventures. The firm is planning to use the capital for ramping up its technology, while also targeting higher adoption of its product in the Indian market.
• Going forward, SalarySe is also aiming to launch a credit-on-UPI system for salaried employees. Consequently, the firm is entering into strategic collaborations with banking institutions, HR SaaS platforms, and employers. Notably, the National Payments Corporation of India (NPCI), launched the credit line on UPI facility in 2023 in India.

In 2024, the publisher expects more venture capital and private equity funding to enter the BNPL sector in India. This will support innovation and a competitive landscape in the BNPL market over the next three to four years.

Rate hikes, margin pinch, and higher NPAs resulted in the downfall of BNPL firms in India

To combat the rising inflation, central banks have announced a series of rate hikes in 2023. This, in turn, resulted in a margin pinch for BNPL providers, which were once thriving in a low interest rate environment. Higher inflation also meant that consumer disposable income declined, resulting in higher borrowings and subsequently higher NPAs for BNPL providers. As a result, a few of the firms had to shut down their operations in the Indian market in Q4 2023.

• PayU India, for instance, made a decision to shut its BNPL prepaid card service LazyCard in November 2023. This is part of the firm's strategy to reduce losses while enhancing the overall business profitability. Notably, the firm launched the BNPL service in 2022.
• Zest Money, which was one of the leading BNPL firms in India, also closed operations in December 2023. The firm got stuck in a financial mess because it had too many bad loans, struggled to collect money effectively, and had a flawed business strategy. The firm, notably, was once valued at US$450 million in the Indian BNPL market.

While the macroeconomic environment is projected to improve over the medium term, the outlook for the sector remains bleak in the short term. Consequently, the publisher expects providers to remain under pressure in Q1 2024.

BNPL platforms are looking to onboard an increasing number of merchants to drive growth

The meet the demands of consumers, BNPL firms are targeting more merchant partnerships in the Indian market. Simpl, for instance, announced that the firm is planning to onboard 10,000 merchants from the Delhi-NCR region over the next three to four years. The firm, as of June 2023, had over 26,000 merchants and more than 10 million customers registered on the BNPL platform. In 2024, the publisher expects this trend to further continue across India. This will subsequently support the growth of the industry, while also driving the competitive landscape over the medium term.

The BNPL payment industry in India has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in India through 55 tables and 71 charts. Below is a summary of key market segments:

India BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

India Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

India BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

India BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

India BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

India BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

India Buy Now Pay Later Market Share Analysis by Key Players

India BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

India Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

India Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Average Monthly Expense segments

Reasons to buy

• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2020-2029). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.
• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.
• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.
• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.
• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in India.