India Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

The embedded finance industry in the country is expected to grow by 19.3% annually to reach US$5.75 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 37.8% from 2024 to 2029. The country's embedded finance revenues will increase from US$5.75 billion in 2024 to reach US$28.60 billion by 2029.

The embedded finance sector in India is undergoing rapid transformation propelled by technological adoption and a shift toward integrated financial services. Noteworthy advancements encompass innovations in e-commerce lending, micro-insurance, and healthcare financing, underpinned by strategic partnerships and a conducive regulatory landscape. These ongoing trends are poised to yield further progress and deeper assimilation of financial solutions into everyday transactions, thereby enriching consumer convenience and accessibility.

Growth in the Embedded Finance Sector

Over the past few months, embedded finance in India has seen substantial growth, particularly in areas such as digital payments, credit solutions, and insurance integration, driven by the increasing adoption of technology and a shift towards online financial services.

In the next few months, we expect continued momentum with more financial product and service innovations. E-commerce platforms are integrating financial solutions to enhance customer experience, reflecting a broader shift in consumer engagement with financial services towards convenience and integration into daily transactions.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

E-commerce Lending Solutions: Major platforms like Flipkart and Myntra have introduced embedded lending options at checkout. These options allow customers to utilize Buy Now, Pay Later (BNPL) services, which enable them to split payments into manageable installments.

Micro-Insurance Products: Ola Money has recently rolled out a new feature - micro-insurance coverage for cab rides. This service offers immediate protection for passengers during their journeys, aiming to enhance customer safety and convenience.

Healthcare Financing: Practo has integrated embedded lending solutions that allow patients to finance medical bills or insurance premiums, thereby improving access to essential healthcare services for individuals with varying income levels.

Strategic Partnerships

E-commerce and Fintech Collaborations: Major e-commerce platforms like Flipkart and Myntra have partnered with non-banking financial companies (NBFCs) to embed lending solutions at checkout. This allows customers to utilize Buy Now, Pay Later (BNPL) options, facilitating easier payment processes and increasing conversion rates for merchants.

Ride-Hailing and Insurance Integration: Ola Money has partnered with insurance providers to offer micro-insurance products directly in its app. This will provide passengers with immediate coverage during rides, making it easier and safer for customers. The partnership will help increase the use of insurance in the mobility sector.

Healthcare Financing Solutions: Practo has partnered with financial institutions to offer lending options embedded in healthcare services. This aims to improve access to healthcare for people with different income levels.

Regulatory Changes

Supportive Regulatory Environment: The Indian government and regulatory bodies, like the Reserve Bank of India (RBI), have made it easier for fintech and embedded finance to grow. The RBI Regulatory Sandbox allows companies to test new financial products and services.

Financial Inclusion Efforts: The government's focus on financial inclusion has been a key driver for the growth of embedded finance. Schemes like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which aims to provide universal access to banking facilities, have laid the foundation for the expansion of financial services.

Open Banking Initiatives: Open banking regulations in India enable secure data sharing with third-party providers, fostering innovative financial products and services and creating opportunities for embedded finance solutions.

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

It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps 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 (2020-2029).
• 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.