Market: Embedded finance to grow 8.8% CAGR

Strategic partnerships between banks/NBFCs leads market

The embedded finance market in India is forecast to grow at a CAGR of 8.8% from 2026 to 2030, reaching approximately US$33.69 billion its 2024 value of US$21.38 billion, according to an industry report being offered by ResearchAndMarkets.com.

It is set to grow by 12.4% on an annual basis, reaching US$24.03 billion by 2025, said the “India Embedded Finance Market” that is on offer since 24 Nov. The market had experienced robust growth during 2021-2025, achieving a CAGR of 17.8%.

“This upward trajectory is expected to continue,” said the report in forecast for 2026-2030.

“Embedded finance in India is being shaped by a diverse set of trends spanning credit, insurance, payments, investments, and infrastructure layers. These trends are driven by regulatory shifts, consumer demand for contextual finance, and platform-led distribution,” said the report.

Strategic partnerships particularly those between banks/NBFCs and tech platforms will remain the dominant mode of expansion, but long-term sustainability will be determined by regulatory adaptability and infrastructure depth, said the report.

Embedded credit is rapidly gaining traction in both B2C and B2B ecosystems in India, with credit products being directly integrated into e-commerce, SaaS, and merchant platforms. Platforms such as Flipkart, Amazon, and Ola continue embedding pay-later and EMI options at checkout, while B2B platforms like Of Business and Udaan offer working capital finance directly within their procurement workflows. These models enable credit to become a contextual offering, improving both conversion and ticket size.

Investment products such as mutual funds, gold savings, and digital SIPs are being embedded into super apps, fintech wallets, and neobanking interfaces. Platforms like Groww, Zerodha, and Paytm Money have integrated equity and SIP offerings within broader app ecosystems, while startups like Jar and Kuvera are embedding micro-investments into daily spends or savings routines, according to the report.

“India’s increasing financialization, rising mobile investing, and high demand for small-ticket, goal-based investment products are key drivers. The emergence of Account Aggregator and Open Credit Enablement Network (OCEN) infrastructure also allows embedded investment journeys to be more customized and compliant,” the report said. fiinews.com