Mumbai, 13 Jan 2023: Indian millennials cumulatively transacted most on Food & Beverages as a category, with an average transaction amount in the range of ₹2000 per month. The next highest spending categories (ranked by number of transactions) were groceries and shopping, with average spending amounts in the range of ₹3000 and ₹4000, respectively.
According to data released by Bengaluru-based fintech Fi Money, which has over 2.3 million users as of December ‘22, most Indian urban millennials spent on these categories, arguably due to the rise of on-demand food delivery and the boom of the instant grocery delivery sector.
Grocery delivery boom & eCommerce have a part to play:
The top categories that users spent on in 2022 were (ranked in decreasing order of spending)
Food & Beverages
Fi money, the Bengaluru-based fintech, processed over ₹5,000 crore worth of transactions this year, of which around ₹600 crore was spent on merchants, the top 3 of which, ranked by a number of transactions were Amazon, Flipkart, and IRCTC.
An active user base
Over a million of Fi Money’s 2.3 million users are app-active monthly, with 89% making an average of 37 transactions per month. The total number of transactions annually stands at around 33 crore transactions across all users.
Giving users back their data
Fi Money gave users a personalized view of their spend trend of 2022 in the form of a click-able set of in-app stories called “Fi Minutes”.
Speaking on the trend, Fi Money’s CEO Sujith Narayanan said “We uncovered this data as part of an ongoing feature we’re showing our users, that gives them a recap of their year on the Fi app” he said, referring to an interactive experience that shows a person their spending, saving, and investing history on Fi. “We want our app’s users to go beyond just using Fi Money as a finance app and instead get actionable insights from it. This is data we are able to give them across all their bank accounts, and not just the Fi account, thanks to the Account Aggregator that securely sources savings account data from users’ other bank accounts.”
The fintech earlier rolled out the mutual funds investing feature and a peer-to-peer investing feature called Fi Jump and is now all set to launch a personal loan offering this week, followed by a credit card later next month.
Indian millennials go international
With travel opening up, forex spending went up significantly. Fi Money offers users a debit card that helps them make zero-forex transactions.
A list of countries ranked by the number of international transactions made by Fi Money’s Indian users:
The year ahead
Spending is likely to grow consistently, given the growing eCommerce and Travel demand. The disposable income of this section of Indian salaried professionals is also likely to grow at a predictable pace despite threats of a looming recession in the global economy.
Investors will stay bullish
Investors on the other hand, are likely to continue investing at an increasing pace given the optimistic sentiment.