India’s Fintech Sector Poised for Massive Growth
India’s fintech growth is accelerating rapidly, thanks to increasing digital expansion and a strong focus on financial inclusion. According to MobiKwik Co-Founder Upasana Taku, the sector is entering a golden phase. She believes the next 10 to 20 years will be transformational for fintech companies serving India’s massive and still underserved population.
Currently, only 10% of Indians use multiple financial products, highlighting a huge gap in accessibility. Therefore, the remaining 90% represents a massive opportunity for innovation in digital finance.
Digital Payments: Just the Beginning
Digital payments in India have come a long way, especially with the success of UPI (Unified Payments Interface). However, only 400–500 million people actively use digital payment services, meaning over half the country still relies on cash.
That gap presents the next frontier in fintech growth. Companies like MobiKwik are focused on expanding beyond payments and reaching users with credit, insurance, and investment products.
Innovation and Differentiation Will Lead the Way
Taku emphasizes the importance of product innovation, governance, and profitability to remain competitive in a growing market. “Our mainstay is going to be differentiation through innovation,” she said.
She expects the fintech growth story to rely on multiple business verticals rather than a single product. This approach helps businesses remain resilient through economic shifts, regulation, and consumer behavior changes.
The Role of AI and Technology
AI will play a significant role in improving personalisation, automation, and product development. With AI, fintechs can deliver smarter, tailored experiences that serve customers better and more securely.
Taku also mentioned that being adaptive to global economic changes is essential. From regulatory updates to international trade tensions, fintech players must observe, adapt, and move fast.
Challenges and Learnings from 2024
Despite positive momentum, the third quarter of FY25 posed challenges for MobiKwik. The company reported a loss of ₹55.28 crore, compared to a ₹5.27 crore profit last year.
This was due to tightening in the unsecured lending market, influenced by regulatory changes. While the first two quarters were profitable, Q3 saw a dip in disbursals, impacting EBITDA.
Nonetheless, revenue still grew by 18% to ₹269.47 crore, showcasing strength in core operations.
Diversification is the Key to Long-Term Success
To sustain fintech growth, companies must diversify offerings across secured credit, investments, savings, and insurance. Relying solely on unsecured lending carries risks, which became evident in recent quarters.
Taku believes that building trust and delivering multiple financial products—especially savings, which Indians favor—is vital. MobiKwik now also offers wallets, bill payments, UPI, and payment gateway services, broadening its reach.
Looking Ahead to a Promising Decade
India’s fintech growth story is just beginning. The government, regulators, and policymakers are backing digital transformation efforts with strong intent.
Taku remains highly optimistic, stating, “This is just the start—we aim to grow 10X over the next decade.”
Her vision reflects the belief that India’s fintech ecosystem will continue evolving rapidly. With more digital inclusion, a tech-savvy population, and AI-led innovations, fintech growth is poised to reshape India’s financial future.