Factoring Market- India
Base Year: 2024
Historical Years: 2019-2024
Forecast Years: 2025-2033
Market Growth Rate: 5.3% (2025-2033)
Market Size in 2024: USD 133.3 Billion
Market Size in 2033: USD 212.2 Billion
The India factoring market is growing swiftly due to MSME financial needs, increasing trade volumes, and supportive legislative actions. According to the latest report by IMARC Group, the market size reached USD 133.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 212.2 Billion by 2033, exhibiting a growth rate (CAGR) of 5.3% during 2025-2033.
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India Factoring Market Trends and Drivers:
Rising Demand for Factoring as a Financing Solution
Businesses increasingly view factoring as essential for managing capital and improving cash flow.
The shift toward factoring began before 2024, as companies identified its effectiveness in overcoming liquidity challenges.
E-commerce and digital transactions have heightened the need for quick cash access, driving demand for factoring.
Modernization of India’s Factoring Landscape
Streamlined processes and online services enable businesses to convert receivables into cash quickly.
Supportive regulations, technological advancements, and awareness of factoring’s benefits are boosting adoption.
Factoring is becoming a critical component of the financial ecosystem for companies seeking flexible funding options.
SMEs as Key Drivers of Growth
Small and medium enterprises (SMEs) face difficulties accessing traditional financing due to credit constraints and lack of collateral.
Factoring helps SMEs improve cash flow, allowing them to invest in growth opportunities.
Government initiatives and digital platforms are making factoring services more accessible, encouraging SME adoption and expansion.
Digital Transformation in the Factoring Industry
Fintech companies are leveraging technology to provide faster, more efficient factoring solutions.
Digital factoring offers instant invoicing, payment tracking, and risk mitigation, improving transparency and reducing fraud.
AI and machine learning innovations are transforming risk assessments, enhancing accuracy and speed in the industry.
Regulatory Support and Framework
The Reserve Bank of India (RBI) has introduced measures to simplify factoring and protect stakeholders, especially MSMEs.
The Trade Receivables Discounting System (TReDS) facilitates transparent receivables discounting, ensuring timely payments and reducing default risks.
Favorable policies, combined with continued digital innovation, are driving the factoring market’s expansion and attracting new participants.
India Factoring Market Industry Segmentation:
The market report offers a comprehensive analysis of the segments, highlighting those with the largest India factoring market share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.
Breakup by Type:
International
Domestic
Breakup by Organization Size:
Small and Medium Enterprises
Large Enterprises
Breakup by Application:
Transportation
Healthcare
Construction
Manufacturing
Others
Breakup by Region:
North India
West and Central India
South India
East and Northeast India
Competitive Landscape:
The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.
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Key highlights of the Report:
Market Performance (2019-2024)
Market Outlook (2025-2033)
COVID-19 Impact on the Market
Porter’s Five Forces Analysis
Strategic Recommendations
Historical, Current and Future Market Trends
Market Drivers and Success Factors
SWOT Analysis
Structure of the Market
Value Chain Analysis
Comprehensive Mapping of the Competitive Landscape
Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.
About Us:
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services.
IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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