FinTech Infra (Eximius Ventures)

Summary

• The Indian FinTech infrastructure market is projected to grow from $1.3 billion in 2023 to over $10 billion by 2030, representing an expected CAGR of 35-40%+p.5
• Indian BFSI IT spend was $13.2 billion in FY24 and is expected to reach $15 billion by FY25, driven by private banks contributing over 50% of fintech infra spendp.6
• Digital payments volume in India experienced significant expansion, rising from $300 billion in FY18 to $3.6 trillion in FY24p.7
• The Onboarding & KYC sector has raised more than $118 million in total funding, with early players expanding into GenAI-powered onboarding and fraud preventionp.8
• Lending infrastructure companies have raised over $800 million, while digital lending is projected to contribute 53% of India's FinTech revenue by 2030, reaching $720 billionp.9
• Payments infrastructure stands as the most mature segment with over $11.8 billion raised in total, though debit card usage experienced a YoY drop of 33%p.10
• Fintech infrastructure valuation multiples have moderated from 16x in FY22 to 10x in FY24, and are expected to stabilise around 5 - 8xp.12

Key insights

1. India's FinTech infrastructure sector has attracted over $3.3 billion in funding across 400+ active companies.p.5
2. Private banks account for over 50% of total fintech infrastructure spend despite holding only ~ 35 - 40% of total banking assets.p.6
3. Over 90%+ of adults in India now hold a bank account, driving high demand for digital verification, onboarding, and lending rails.p.7
4. The Onboarding & KYC market faces commoditisation challenges, prompting startups to shift toward video-KYC and microfinance-specific stacks.p.8
5. Digital lending is forecasted to reach $720 billion in India by 2030, representing 53% of overall FinTech revenue.p.9
6. Digital transactions account for 40% of all payments in India, even as debit card usage saw a 33% year-over-year decline.p.10
7. Zeta reported INR 893 Cr in revenue and INR 119 Cr in PAT, though its revenue remains heavily concentrated on HDFC.p.11
8. FinTech infrastructure valuation multiples have contracted from 16x in FY22 down to 10x in FY24, with expectations to settle at 5 - 8x.p.12
9. Emerging whitespaces include cross-border CBDC and stablecoin infrastructure, as well as contract-based escrow for gig workers.p.14
10. Banks in India are increasing tech investments, currently spending 6 - 10% of OPEX on technology compared to ~ 3 - 5% historically.p.15