The document describes India's population segmented into four groups based on annual household income:
1) Elite (4% of households, $37k+ income) are the wealthiest class.
2) Affluent (9% of households, $18.5k-37k income) are in the top 6-10% of incomes.
3) Aspires (23% of households, $7.4k-18.5k income) are the middle class looking to upgrade.
4) Next Billion/Strugglers (64% of households, <$7.4k income) have incomes spent mostly on basic needs.
It outlines opportunities in financial
2. Elite (11M HHs, 4%)
>$37k annual gross HH income
Wealthiest class in India
Affluent (26M HHs, 9%)
$18.5k-$37k annual gross HH income
Top 6-10% of highest income HHs
Aspires (66M HHs, 23%)
$7.4k-18.5k annual gross HH income
Middle Class- Looking to trade up & aspire
to upgrade (Disposable Income - 60%)
Next Billion (103M HHs, 500m, 36%)
$3.3k-$7.4k annual gross HH income
New Consumers- HHs have some
disposable income (33%), total spend $1 T
Strugglers (80M HHs, 28%)
<$3.3k annual gross HH income
HHs with the majority of spend on basic
needs such as food, shelter, power & water
India 2020
India 1
Elite, Affluent and Aspirers (Current Opportunity)
India 2 Next Billion (New Opportunity)
India 3 Strugglers
3. The Missing Middle
Large informal economy
> 45% of GDP
Informal employment
80% of workforce
Low per capita spending
97% of population
lives on < US$10 per day
Lack of data
Only 3% of population
pays taxes
4. Unlocking India 2 (Bharat) Potential in 3 Steps
India Stack
Technology backbone for
presence-less, paperless
and cashless economy
Financial Inclusion
Payments, Lending, Savings
2nd Derivatives
Healthcare
Entertainment
Consumer Cleantech
Supply Chain Tech
…
5. Digital Identity
1 Billion have Aadhaar
Mobile
200 M smartphones
350 M have internet
25 M smartphones sold per quarter
India is changing
GST
70 Mn entities with digital
invoices. Pulling in smaller
enterprises into the formal
economy
6. PRESENCE-LESS LAYER Aadhaar Authentication
Unique digital biometric identity with open
access of nearly a Billion users
CONSENT LAYER National Policy on Data Sharing
Provides a modern privacy data sharing
framework
PAPERLESS LAYER
Aadhaar e-KYC,
E-sign, Digital Locker
Rapidly growing base of paperless systems
with billions of artifacts
CASHLESS LAYER IMPS, AEPS, APB, and UPI
Game changing electronic payment systems
and transition to cashless economy
COMMERCE
(GSTn)
SUBSIDIES
(DBT)
BILLS
(BBPS)
OTHERS
INDIASTACK
TOLLS
(ETC)
JAM Jan Dhan, Aadhaar, Mobile
India Stack
7. Source: UIDAI, NPCI, TRAI Website, Conversations with NPCI, eMudhra, Deity
3 Bn
Authentications of
500M unique ids
1.075 BnEnrolments In 6 years since launch
340 Mn
eKYC in 3 years
75 Mn unique ids
349 Mn
APB Accounts Linked
1.2 B Transactions worth 4.5 B USD in 3 years
>2.5 Mn
e-Sign in 15 months
>0.8 Mn unique ids
2.9 Mn
Digilocker users &
15 months
4.8 Mn
Uploaded Docs
2M+
UPI VPA in
Just under 2 Months
252 MnJan Dhan bank accounts
200 MnSmartphones
1060 Mn
Phone numbers
Jan Dhan Aadhaar Mobile
8. Time
Winning ‘Next Billion’ Consumers needs new mindset
PenetrationS-Curve 1 focused on India 1
S-Curve 2 focused on India 2 (Bharat)
Almost fully penetrated
Created winners like FK,
Amazon India, HDFC Bank
Copy-paste business models
Sizeable discretionary spending power and appetite:
- Consumption Spend is $1T in 2020
- Unrecognized profit pools
- China scale: 36% of population = ~500M people
Unknown and unverified business models
China or US Copy-paste business models won’t work
9. India 2 | Financial Inclusion
India Stack
Technology backbone for
presence-less, paperless
and cashless economy
Financial Inclusion
Payments, Lending, Savings
2nd Derivatives
Healthcare
Entertainment
Consumer Cleantech
Supply Chain Tech
…
10. 2.0x86% 690M
Payments
Currency in
circulation
withdrawn
Card base now
activated. 2.5x card
transactions in 1 month
Digital transactions
are up 2x. Share of
payments 3x
Total value of digital payments by 2020 is estimated to be USD 1 Trillion
11. Consumer Lending
Debt penetration remains low, with
<30% households having any form of debt
Overall household debt to GDP is < 20%,
with banking sector consumer loans to
GDP at ~10%
High Degree of Financial Exclusion
http://pn.ispirt.in/ispirt-the-india-stack-pilot-commercialization-
of-techno-creative-innovations/
12. ● 79% of enterprises in India have < 10
employees
● Lending to smaller enterprises is at a
significantly higher rate
● With increasing digitization, share of bank
lending should increase and cost of
lending should come down
● Consumer and SME loans to grow 5x over
the next 10 yrs.
SME Lending
High Degree of Financial Exclusion
93% of MSMEs are reliant on self
finance or no finance
Institutional
Sources 5%
Non-Institutional
Sources 2%
Self-Financed
93%
13. India 2 | 2nd Derivatives
India Stack
Technology backbone for
presence-less, paperless
and cashless economy
Financial Inclusion
Payments, Lending, Savings
2nd Derivatives
Healthcare
Entertainment
Consumer Cleantech
Supply Chain Tech
…
15. 40m to the next Billion
Homegrown solutions are finding success
tapping this opportunity and attracting
capital
Technology unlock has raised
India’s consuming class to ~
350mn people vs < 60mn earlier
Inflection point in growth for
solutions that leverage this tech
infrastructure