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BNPL services in India is witnessing an exponential growth

India is relatively a new entrant in BNPL segment in comparison to other<br>global counterparts but early signs indicate that the country is all set to<br>become the largest BNPL market with the market expected to register a<br>positive CAGR of ~400% in terms of GMV, over the next five years.

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BNPL services in India is witnessing an exponential growth

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  1. JULY 2022 | Week 2 IN ESSENCE The Weekly Newsletter of Ken Research & Strategy Consultants Trending This Week The Era of Buy Now, Pay Later Though, the BNPL segment is at a nascent stage globally as well as in India, but trends indicate a promising future where it could capture the largest market share among payments method. Over the years the market has been growing at an exponential rate. INDIA READY TO RIDE THE BNPL BOOM The 'Buy Now Pay Later (BNPL)' services has gained much prominence worldwide, especially during the pandemic as unlike credit cards, it offers seamless credit to consumers, and repayment through simple, interest-free installments without any additional cost. Amongst partner segments to the BNPL service providers globally, there has been a tremendous growth in e-commerce and online food delivery segments. As for India, the rising penetration and logistics development country a hotspot for E-Commerce growth. the primary merchant makes the Change in Global E-Commerce Index by Units (2019-2021) 6.1 INSIDE THIS ISSUE: 8 6 4 2 0 -2 -4 The Era of BNPL Page 1 Indian BPNL Market Landscape Page 2 2.4 1 1.4 0.6 0 -2.1 -2.3 Indian BPNL Market Ecosystem Page 3 Our Related Reports Page 4 Brazil Japan India Hogkong Germany China Malaysia Pakistan

  2. BNPL services in India is witnessing an exponential growth & is all se to outperform global growth in coming years... India is relatively a new entrant in BNPL segment in comparison to other global counterparts but early signs indicate that the country is all set to become the largest BNPL market with the market expected to register a positive CAGR of ~400% in terms of GMV, over the next five years. Indian BNPL industry has witnessed a meteoric growth of 14x in just the last 2 years itself. Incremental Growth (2021-2026E) CAGR 400% 1,500 321.1% CAGR 1,000 500 0 2019 2020 2021 The caught millennials population in India because of convenience, flexibility and embedded components that comes along with it. Currently, 26-35 years age group is segment of BNPL users in India capturing 40% of market share, with population targeted as future customers. segment the has attention and largely of Z 60% Gen >25 Years Age Group 26-35 lending 36-45 18-25 Future Customers >18 the prime < 45 >18 >18 >18 >18 >18 younger Further, amongst the various regions of the country Southern Zone has been the highest contributor of BNPL Market, followed by North, West & East North "Trends indicate the average age of consumers under the BNPL segment in India is 35 years old, more than 60% customers are seen to be based out of Tier 1 cities, while the average ticket size of transactions is around 1-3% " East West South 45%

  3. ..And, thats not all as BNPL Solutions are all set to Unlock Growth Potential for Startups, Pay Later Models in India The Indian BNPL ecosystem is evolving at a rapid pace. with the presence of several startups and FinTech platforms. Further, the increased interest in adoption of BNPL solutions & the success of the incumbent Fintechs is motivating the entry and funding of new players. However, the key emerging risk for BNPL is regulatory. Currently, the sector is lightly regulated with no laws specific to BNPL lending are in place; the regulators basically include RBI and Meity. supply side demand side Food Aggregators / Restaurants Primary BNPL Players (App-Based) Entertainment Platforms E-Commerce / Travel Aggregators Cosmetics, Grooming, Apparels Grocery Platforms Card-Based BNPL Electronics Banks Offering BNPL Services Travel Aggregators M-Wallets Coming years to witness BNPL Market gaining further momentum fueled by various growth drivers coupled with convenience offered by BNPL Platforms Supply side Growth drivers demand side Demographic Technological Macro Economy Internet Penetration Rise of Online Purchase Government Initiatives Unmet Demand Regulatory Enablers

  4. OUR RELATED REPORTS +91 9311149880 support@kenresearch.com www.kenresearch.com

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