DUBLIN--(BUSINESS WIRE)--The "India Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
BNPL payments in India are expected to grow by 16.5% on an annual basis to reach US$17.15 billion in 2024. The medium to long-term growth story of the BNPL industry in India remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.7% during 2024-2029.
The BNPL gross merchandise value in India will increase from US$14.71 billion in 2023 to reach US$28.47 billion by 2029. The BNPL industry is expected to grow at a steady pace over the medium term in India. The higher credit demand, among underbanked and underserved consumers, is supporting the uptake of BNPL products. This trend is projected to continue further in India in 2024. The booming e-commerce sector will also provide growth support to the Indian BNPL market over the medium term.
New entrants in the market are also raising funding rounds to scale their product offerings. While the market is poised for growth, rate hikes, and margin pinch have put BNPL firms in a tough spot. In Q4 2023, a few of the providers shut down BNPL services due to higher NPAs and growing losses. In the long term, however, the industry is expected to report strong growth due to rising demand and an improving macroeconomic environment.
BNPL startups are raising funding rounds to ramp up technology and drive adoption in India
The credit demand is growing at a rapid rate among consumers in India. The higher inflation and decline in disposable income are driving the credit demand. Consequently, to reach more consumers, BNPL firms are raising funding rounds from venture capital and private equity firms.
In 2024, more venture capital and private equity funding is expected to enter the BNPL sector in India. This will support innovation and a competitive landscape in the BNPL market over the next three to four years.
Rate hikes, margin pinch, and higher NPAs resulted in the downfall of BNPL firms in India
To combat the rising inflation, central banks announced a series of rate hikes in 2023. This, in turn, resulted in a margin pinch for BNPL providers, which were once thriving in a low interest rate environment. Higher inflation also meant that consumer disposable income declined, resulting in higher borrowings and subsequently higher NPAs for BNPL providers. As a result, a few of the firms had to shut down their operations in the Indian market in Q4 2023.
While the macroeconomic environment is projected to improve over the medium term, the outlook for the sector remains bleak in the short term. Consequently, the publisher expects providers to remain under pressure in Q1 2024.
BNPL platforms are looking to onboard an increasing number of merchants to drive growth
The meet the demands of consumers, BNPL firms are targeting more merchant partnerships in the Indian market. Simpl, for instance, announced that the firm is planning to onboard 10,000 merchants from the Delhi-NCR region over the next three to four years. The firm, as of June 2023, had over 26,000 merchants and more than 10 million customers registered on the BNPL platform. In 2024, the publisher expects this trend to further continue across India. This will subsequently support the growth of the industry, while also driving the competitive landscape over the medium term.
The BNPL payment industry in India has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.
Report Scope
This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.
This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in India through 55 tables and 71 charts. Below is a summary of key market segments:
- India BNPL Market Size and Spending Pattern, 2020-2029
- India Buy Now Pay Later Revenue Analysis, 2020-2029
- India Buy Now Pay Later Operational KPIs & Statistics, 2020-2029
- India BNPL by Purpose, 2020-2029
- India BNPL by Business Model, 2020-2029
- India BNPL by Merchant Ecosystem, 2020-2029
- India BNPL by Distribution Model Analysis, 2020-2029
- India Buy Now Pay Later Market Share Analysis by Key Players
- India BNPL Analysis by Channel, 2020-2029
- India Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029
- India Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029
- India Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029
- India Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029
- India Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029
- India Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029
- India Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029
- India Buy Now Pay Later in Others: Market Size and Forecast
- India Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 88 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $17.2 Billion |
| Forecasted Market Value (USD) by 2029 | $28.5 Billion |
| Compound Annual Growth Rate | 10.7% |
| Regions Covered | India |
For more information about this report visit https://www.researchandmarkets.com/r/z9kltn
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