Embedded Finance to Create $25B Revenue Opportunity for India By 2030
A report reveals that embedded finance could generate a $25 billion revenue opportunity for India's digital and financial services platforms by 2030. Embedded finance refers to the integration of financial services directly into everyday consumer platforms, digital networks, and supply chains, significantly expanding customer reach.
According to the report by Elevation Capital, India’s leading early-stage venture capital firm, large consumer platforms in e-commerce, travel and mobility space are projected to serve 400-450 million users by FY30 and embedding contextual financial services here will unlock a $10-15 billion revenue opportunity.
The second opportunity is through India’s unique open digital networks, such as the government’s Open Network for Digital Commerce (ONDC). It is estimated that, collectively, financial services via these networks could generate a potential annual revenue of more than $5 billion by FY30.
A report suggests that embedded finance could unlock a $25 billion revenue opportunity for India's digital and financial services platforms by 2030. This model involves integrating financial services into everyday consumer platforms, digital networks, and supply chains, thereby expanding customer access.
“This transformation has been a decade in the making, fuelled by the creation of public rails and DPI (such as UPI, KYC, GST), the establishment of large digital channels (spanning both consumer and supply chains), the widespread adoption of new-age core software and middleware, and the acceleration of manufacturing innovation,” explained Mridul Arora and Vaas Bhaskar, Partners, Elevation Capital.In this context, embedding financial products is the most effective way to drive product/ market penetration.“We don’t see this as just a topline opportunity but as a potential to improve retention, increase affordability and more. We see considerable new value creation in in distribution, manufacturing and software”, they added.
