Indian will grow tenfold to have $1 trillion in (AUM) and $200 billion in revenue by 2030, said a report on Tuesday.

The digital lending market, with a $515 billion book size by 2030, will shape much of this growth, said the report called ‘$1 Tn India Opportunity’ released by Chiratae Ventures in collaboration with Ernst and Young (EY).

India had 21 unicorns (a company valued at $1 billion or more) as of March 2022. A collaborative ecosystem is driving fintech growth, which is supported by government initiatives like Digital India, Smart City, and Unified Payments Interface (UPI), said the report.

An amount of $1 billion has been invested in digital lending. Fintech-facilitated lending will grow by $476 billion to reach $514.6 billion in book size by 2030.

“The market has been a formidable global force, contributing to the largest share of unicorns in India. We have been a technology first investor believing in the power of both data and technology,” said Sudhir Sethi, founder and chairperson of Chiratae Ventures.

The report said that ‘buy now pay late’’ has become mainstream and is emerging strongly in B2C and B2B payments spaces. Co-lending will emerge as a preferred model that supports lending partners to mitigate risk exposure. New asset classes, cryptocurrencies, and non-fungible tokens will also continue to attract investor interest, as assist traditionally underserved customers.

“India is recognized as a strong FinTech hub globally and is increasingly becoming a talent destination for fintech businesses. We are glad to partner with Chiratae Ventures and delve into the emerging trends in regulatory innovation, technology advancements, new business models, industry convergence, and inclusive digital financial services in the space,” said Rajiv Memani, chairman and managing partner, EY India.

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