India Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2024 Update

According to the publisher, the Embedded Finance industry in India is expected to grow by 43.1% on annual basis to reach US$ 6.90 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 37.8% during 2024-2029. The embedded finance revenues in the country will increase from US$ 6.90 billion in 2024 to reach US$ 34.32 billion by 2029.

Embedded finance is one of the fastest growing areas in the fintech industry, with a huge growth potential in a developing country like India, owing to the young population that is increasingly adopting new age technologies. Embedded Finance has the potential to revolutionize the delivery of financial services in India. This innovation can enhance accessibility, affordability, and convenience for consumers, while simultaneously fostering business growth and innovation. Embedded finance represents not only a technological advancement but also a socio-economic transformation. By streamlining financial services, it holds the promise of integrating millions of individuals into the formal financial sector. India's population of over 1.3 billion and its rapidly expanding digital economy, the country offers a substantial opportunity for fintech companies seeking to introduce groundbreaking financial services to consumers.

Growth Drivers in India: Embedded finance is expanding the availability of financial services in India. With embedded finance, individuals who were previously underserved or excluded from traditional banking services can now access financial products and services. Embedded finance is also improving financial inclusion in India by providing individuals with greater access to financial services.

Underbanked Population: A large underbanked population creates a significant demand for credit. Fintech firms are addressing this gap with innovative lending solutions, including short-term loans and BNPL (Buy Now, Pay Later) services. Demand for embedded credit is expected to rise in smaller cities. Providers such as KreditBee and Pine Labs are strategizing expansion into these areas, forging partnerships with stores and increasing their reach. Paytm, a major mobile wallet player, is leveraging its platform to offer BNPL, personal loans, and merchant loans. This trend is expected to continue with PhonePe potentially entering the consumer lending space soon.

Pandemic-Fueled Digitalization: The COVID-19 pandemic accelerated the adoption of online shopping and digital financial services. This created a fertile ground for embedded finance solutions, as consumers became comfortable managing finances online. E-commerce giants like Flipkart and Myntra embed lending at checkout via partnerships with NBFCs. This allows shoppers to split cart values into multiple interest-free EMIs, boosting sales.

In the mobility space, Ola Money embedded micro-insurance for cab rides covering theft or damage. This saw rapid adoption as it removed friction by bundling insurance directly with the cab booking experience. Healthcare platforms like Practo also let patients finance medical bills or premiums via embedded lending. Such embedded finance improves access to critical services for those with irregular incomes.

UPI’s Dominance in India’s Payment Landscape: One of the most notable examples of Embedded Finance’s impact is seen in the rise of the Unified Payments Interface (UPI) in India. With billions of transactions worth trillions of rupees recorded monthly, UPI has become a dominant force in the country’s payment ecosystem, replacing cash and driving digitization of the economy. The acceptance of UPI among merchants has also increased, enhancing credit eligibility for small businesses and consumers. As per 2024 UPI statistics, more than 260 million people uses UPI in India and 360 million UPI transaction are recorded per day.

Embedded finance aims to streamline financial processes in both consumer and business commerce by reducing barriers to entry for various products and services, enabling ease of payments at various touchpoints.

• In Mar 2024, Visa and Taulia, an SAP company, have announced a new partnership to make embedded finance accessible to businesses worldwide. The collaboration will incorporate Visa’s digital payments technology into Taulia Virtual Cards, a solution that integrates with SAP enterprise resource planning (ERP) solutions and business applications for a seamless and streamlined payments experience for buyers and suppliers.
• In Mar 2023, actyv.ai, a category creator in the enterprise SaaS with embedded B2B BNPL and insurance space announced a strategic partnership with PwC India to drive adoption of embedded finance in supply chain ecosystems for their clients. The alliance aims to focus on using the power of artificial intelligence to drive growth opportunities in the global supply chain ecosystem while also providing access to relevant embedded financial and insurance products.
• In Nov 2022, SBM Bank India and OPEN Financial Technologies Pvt Ltd announced a strategic partnership to launch Asia’s first end-to-end Embedded Finance platform- Zwitch- to offer a no-code, low-code, and full-stack API solution that enables fintechs to build their own financial products using Zwitch’s technology stack, comprising of a drag-drop dashboard, low code plugins along with 300+ APIs.

This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution models. In addition, it also provides detailed information across a range of different segment in each sector of embedded finance. KPI revenue 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 Embedded Finance industry in India. Below is a summary of key market segments:

India Embedded Finance Market Size and Forecast

Embedded Finance by Key Sectors

• Retail
• Logistics
• Telecommunications
• Manufacturing
• Consumer Health
• Others

Embedded Finance by Business Model

• Platforms
• Enabler
• Regulatory Entity

Embedded Finance by Distribution Model

• Own Platforms
• Third Party Platforms

India Embedded Insurance Market Size and Forecast

Embedded Insurance by Industry

• Embedded Insurance in Consumer Products
• Embedded Insurance in Travel & Hospitality
• Embedded Insurance in Automotive
• Embedded Insurance in Healthcare
• Embedded Insurance in Real Estate
• Embedded Insurance in Transport & Logistics
• Embedded Insurance in Others

Embedded Insurance by Consumer Segments

• B2B
• B2C

Embedded Insurance by Type of Offering

• Embedded Insurance in Product Segment
• Embedded Insurance in Service Segment

Embedded Insurance by Business Model

• Platforms
• Enabler
• Regulatory Entity

Embedded Insurance by Distribution Model

• Own Platforms
• Third Party Platforms

Embedded Insurance by Distribution Channel

• Embedded Sales
• Bancassurance
• Broker’s/IFA’s
• Tied Agents

Embedded Insurance by Insurance Type

• Embedded Insurance in Life Segment
• Embedded Insurance in Non-Life Segment

Embedded Insurance in Non-Life Segment

• Motor Vehicle
• Fire and Property
• Accident and Health
• General Liability
• Marine, Aviation and other Transport
• Other

India Embedded Lending Market Size and Forecast

Embedded Lending by Consumer Segments

• Business Lending
• Retail Lending

Embedded Lending by B2B Sectors

• Embedded Lending in Retail & Consumer Goods
• Embedded Lending in IT & Software Services
• Embedded Lending in Media, Entertainment & Leisure
• Embedded Lending in Manufacturing & Distribution
• Embedded Lending in Real Estate
• Embedded Lending in Other

Embedded Lending by B2C Sectors

• Embedded Lending in Retail Shopping
• Embedded Lending in Home Improvement
• Embedded Lending in Leisure & Entertainment
• Embedded Lending in Healthcare and Wellness
• Embedded Lending in Other

Embedded Lending by Type

• BNPL Lending
• POS Lending
• Personal Loans

Embedded Lending by Business Model

• Platforms
• Enabler
• Regulatory Entity

Embedded Lending by Distribution Model

• Own Platforms
• Third Party Platforms

India Embedded Payment Market Size and Forecast

Embedded Payment by Consumer Segments

• B2B
• B2C

Embedded Payment by End-Use Sector

• Embedded Payment in Retail & Consumer Goods
• Embedded Payment in Digital Products & Services
• Embedded Payment in Utility Bill Payment
• Embedded Payment in Travel & Hospitality
• Embedded Payment in Leisure & Entertainment
• Embedded Payment in Health & Wellness
• Embedded Payment in Office Supplies & Equipment
• Embedded Payment in Other

Embedded Payment by Business Model

• Platforms
• Enabler
• Regulatory Entity

Embedded Payment by Distribution Model

• Own Platforms
• Third Party Platforms

India Embedded Wealth Management Market Size and Forecast

India Asset Based Finance Management Industry Market Size and Forecast

Asset Based Finance by Type of Asset

• Hard Assets
• Soft Assets

Asset Based Finance by End Users

• SME’s
• Large Enterprises

Reasons to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
• Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.