India Embedded Finance Business and Investment Opportunities Databook - 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2023 Update

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Apr 11, 2023, 18:45 ET

DUBLIN, April 11, 2023 /PRNewswire/ -- The "India Embedded Finance Business and Investment Opportunities Databook - 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.

In India, embedded finance has created new growth avenues for new-age digital business and traditional financial service providers. An increasing number of businesses are leveraging embedded finance to create a competitive advantage and increase their revenue share by offering financial services. The sector has emerged as lead the growth of the Indian fintech industry and the trend is projected to further continue amid the growing digitalization.

Owing to the young population, coupled with the growing shift towards new-age technologies, the embedded finance sector is projected to record strong growth over the next three to four years in India. The growth in the segment will be driven by the embedded payment sector, while embedded insurance and embedded lending are also projected to become high-growth areas from the short to medium-term perspective.

B2B embedded lending firms are experiencing strong growth in loan disbursal in India

The working capital requirement has increased significantly among MSMEs in India. According to a report from SIDBI and TransUnion CIBIL, the MSME loan demand has increased to reach 1.6 times compared to the pandemic levels. As the sector continues to be underserved by traditional financial service providers, embedded lending providers are aiming to solve the working capital requirement. As a result, these firms are experiencing strong growth in loan disbursal.

In December 2022, Rupifi, one of the leading embedded finance firms in India, announced that the firm had disbursed more than INR 20 billion in loans, since its launch in 2020. In 2022, the firm reported a growth of 407.7% in loan disbursal compared to the year before. This growth has been attributed to the significant uptick during the pre-Diwali season.
The firm operates in the B2B space. Through its BNPL and checkout products for MSMEs it aims simplify working capital needs of businesses. It has partnered with leading B2B marketplaces across sectors, including FMCG, fashion, pharma, electronics, and food, among others. The Tiger Global-backed embedded finance firm raised US$22 million in its Series A round. The firm largely works with non-banking financial institutions to provide MSMEs with working capital.

With rising interest rates and inflationary pressure, the demand for working capital is projected to further increase among MSMEs in India. Consequently, PayNXT360 projects B2B embedded lending providers to record strong growth from the short to medium-term perspective.

A growing number of renters are interested in buying insurance from rental listing providers in India

Due to convenience, more and more customers are intending to switch to embedded insurance at the cost of traditional insurers. As a result, of these growing preferences for embedded insurance, proptech platforms are forging strategic alliances to foray into the embedded insurance sector. For instance,

In October 2022, Housing.com, the leading proptech platforms in India, announced a strategic partnership with Riskcovry to offer embedded insurance services. The premium for Rent Protect Cover, the embedded insurance product, is embedded into the monthly rent payments. The insurance cover offers a host of benefits, including cover for critical illness, personal accident cover, and medical expenses coverage.

With more customers demanding a seamless experience while renting and buying properties, the author expects more rental listing providers to offer embedded insurance. This will further accelerate the growth of the embedded insurance segment, which is already one of the fastest-growing sectors in the fintech space.

Firms are forging strategic alliances enabling fintech firms to build their financial products

Embedded finance has emerged as one of the fastest-growing sectors in the Indian fintech industry. Consequently, more and more players are planning to launch embedded financial services to increase their revenue. To enable these firms to launch embedded services at a faster pace, firms are forging strategic alliances in India.

In November 2022, SBM Bank and OPEN Financial Technology announced a strategic partnership with Zwitch, an embedded finance platform. Under the collaboration, the firms will provide businesses with a no-code, low-code, and full-stack API solution. This will enable businesses to embed financial services into their products and services. The technology offered by Zwitch reduces the go-to-market time significantly while increasing the revenue for businesses.

Amid the growing consumer shift towards embedded financial services, more and more businesses are projected to launch such capabilities. Consequently, the author expects more firms to adopt the technology offered by Zwitch to introduce financial services for their customers in India.

According to the publisher, Embedded Finance industry in the India is expected to grow by 46.0% on annual basis to reach US$5,330.0 million in 2023.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 36.3% during 2023-2029. The embedded finance revenues in the country will increase from US$5,330.0 million in 2023 to reach US$23,451.6 million by 2029.

This report provides a detailed data centric analysis of market opportunity across 50+ segments in embedded finance industry covering lending, insurance, payment, wealth and asset based finance sectors.

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

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

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

For more information about this report visit https://www.researchandmarkets.com/r/62h8u1

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