Indian Enterprise Fintech Market Poised to Reach $20 Billion Amidst Rising Demand

A recent report from venture capital firm Chiratae Ventures and finance consultancy Digital Fifth projects a significant surge in the Indian enterprise fintech market, foreseeing a market size touching $20 billion. This expansion is attributed to the escalating demand for fintech infrastructure providers.

The driving force behind this surge is the imperative for incumbents like banks and financial institutions to expand their reach through partnerships, offer tailored solutions, enhance underwriting and lending operations, and ensure compliance amidst evolving regulatory landscapes.

Chiratae predicts an additional $7-$8 billion in funding from risk investors by 2030, underlining the growing traction of the enterprise fintech sector. TCM Sundaram, founder of Chiratae Ventures, highlights the sector’s capital efficiency and its capability to build scaled business models without undertaking substantial risks.

Moreover, enterprise fintechs possess the potential to tap into global markets, further elevating their appeal to investors. Sundaram emphasizes India’s pioneering role in fintech innovation, noting its influence extending to markets like Africa and South Asia.

The report reveals that between 2022 and 2023, the B2B enterprise segment attracted approximately $2.4 billion in funding, primarily concentrated in lending and banking verticals within the Indian fintech landscape.

Despite the burgeoning interest from incumbents in various enterprise fintech models, the wealth-tech space remains relatively unexplored due to stringent regulations. Sundaram identifies untapped opportunities in areas like blockchain, suggesting potential technology-led partnerships with banks.

In essence, the Indian enterprise fintech market is poised for substantial growth, driven by increasing demands for innovation, scalability, and regulatory compliance in the financial sector.