Wealthtech Drives Indian Fintech Profits in FY25: Jefferies

India's fintech sector recorded its first aggregate profit in FY25, with total industry revenue reaching ₹1.03 trillion.
Wealthtech emerged as the primary earnings driver, generating ₹22,600 crore in revenue and ₹7,400 crore in profit after tax.
The payments segment led revenue at ₹51,200 crore but ended the year with a consolidated loss of ₹5,300 crore.
Firms including Groww, Zerodha, and Angel One benefited from rising retail investor participation, steady SIP inflows, and active futures and options trading.
Industry revenue growth is projected to moderate from a 49% CAGR during FY21 to FY25 to 18% over the next five years.
Potential SEBI regulation of index options derivatives and the removal of UPI incentive schemes pose risks to future transaction volumes and client float income.
Wealthtech firms are pursuing cross-selling of margin trading, loans against securities, and personal loans to raise customer lifetime value, with Jefferies forecasting a 29% wealthtech revenue CAGR through FY28.