Yesterday a founder building in lending in US asked me:
Why are embedded fintech startups scaling 2x faster in India than the West?
My answer:
Because we aren’t just building startups, we’re building on India Stack.
And now, with embedded finance layered over it, the opportunity isn’t just 10x it’s nation-changing.
First, What Is India Stack?
It’s India’s public digital rails free, open, secure that startups plug into to solve big problems without big infra costs.
a. Aadhaar = Identity
b. UPI = Instant Payments
c. eKYC & DigiLocker = Paperless onboarding
d. Account Aggregator = Consent-based data sharing
e. ONDC = Open e-commerce
f. DEPA = Data Empowerment framework
Now imagine adding embedded finance on top credit, insurance, payments, or wealth inside your product.
No bank license needed. Just India Stack infra + API partners.
Real-World Examples (You’ll Love These)
A. Zetwerk- Embedded working capital credit for SME vendors using GST + AA + UPI
B. Jumbotail- Offers Buy-Now-Pay-Later to kirana stores at checkout, powered by Account Aggregator data
C. Onsurity- Embeds group health insurance inside HR platforms for SMBs
D. Chalo- Bus ticketing app that embeds real-time payments via UPI for tier-2 riders
E. NoBroker- Offers home loans within the app by layering AA + eKYC + UPI for property buyers
F. Leap Finance- Offers student loans embedded in EdTech journeys, built on AA + credit APIs
Each one is using India Stack infra + embedded fintech rails to unlock ₹1000s Cr of value.The Numbers Back It
a. 1.35B Aadhaar holders
b. 18.3B UPI transactions/month
c. ₹24.7L Cr processed in UPI (Mar 2025)
d. 2,400+ FIPs live on Account Aggregator
e. 90% of new-age fintechs are embedding credit, insurance, or payments via APIs
f. VC money is now following these rails 70% of funded fintechs use India Stack infra
Why This Matters?
A. Founders: You can embed banking, credit, or insurance inside your product at zero infra cost. Build faster, raise less.
B. VCs / LPs / AIFs: Infra-led innovation = better margins, faster scale, lower CAC. Think of this as fintech-as-rails not just apps.
C. Family Offices: Backing infra-native startups is like owning the toll booth, not the car.
Final Thought
India Stack gave us digital roads.
Embedded finance is letting founders build high-speed trains on it.
Together, they’re not just disrupting they’re redefining fintech globally.
The next Razorpay, Groww, or CRED is already being built and it’s probably riding India Stack + embedded finance.
Want My Curated Toolkit?
I am building a Fintech Founder's Toolkit with:
a. India Stack APIs
b. Embedded finance infra players
c. Case studies
d. Sector-specific use-cases
Comment "Toolkit".
Let’s build smarter, faster, cheaper.
Let’s build for Bharat.🇮🇳
IndiaStack EmbeddedFinance FintechIndia UPI ONDC AccountAggregator FintechRails VCFunding LPInvesting BharatTech
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