The report also highlighted that some entities perceive India as a “diverse and geographically dispersed market” which lead to concerns over significant capital and operational investments to build a meaningful scale.
“This is more a perception than reality on a relative basis. One way to address this is to pick niches and build scale within them,” it said and pointed out that micro, small and medium enterprises’ business, which are concentrated in 30 clusters, have a credit outstanding of USD 300 billion.
Costs and the inability of Indian markets to absorb developed markets’ cost structures are among the other hurdles, the report said, asking all to overcome them by building the majority of the technology stack locally while leveraging global experience for the design principles, customer experience, and security layers.
The Indian DCB landscape includes captive units being set up by banks, new attackers like Niyo focusing on customer experience for financial services products and existing digital ecosystem players with a large customer base like Paytm.
As per the report, when it comes to profitability, a bottomline in the black is very elusive for such companies globally, and picked out Paytm as the only profitable player in India.