Indian Startups Utilizing DPI Valued at $100 Billion, Reveals Nilekani

Infosys co-founder and chairman Nandan Nilekani stated on Wednesday that startups leveraging India's digital public infrastructure (DPI) are valued at USD 100 billion. Speaking at the annual Global Fintech Fest, Nilekani highlighted that the goal behind creating Aadhar and the unified payments interface (UPI) was to establish a foundation for private sector innovation.

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Future of Finance: Finternet

Nilekani, who played a crucial role in the development of both Aadhar and UPI, introduced the concept of "Finternet." He explained that Finternet will be user-centric and unified, encompassing all types of assets with a universal infrastructure. This new financial system aims to meet users' increasing demands for more choice and control.

The market value of startups built on India's DPI is estimated to be around USD 100 billion, according to Nilekani. He emphasized that the infrastructure allows entrepreneurs to develop innovative solutions. "Financial systems are unable to handle the demand from users as they want more choice and more control," he said.

Unified Infrastructure for All Assets

Nilekani elaborated that all assets, including land, property, bonds, financial investments, art, and paintings, will be integrated into a single infrastructure and tokenised. This approach aims to enable broad participation and control over various asset types. "We want to have something which allows everyone to participate and control all kinds of assets," he added.

He mentioned that user-controlled assets, user content, NFTs (non-fungible tokens), certified adjusted assets, registered assets like land, and regulated financial products would all be part of this unified system. This comprehensive approach is designed to streamline asset management and enhance user control.

Nilekani also shared that he has co-authored a paper on Finternet with Pramod Varma, Siddharth Shetty, Agustin Carstens, and the team at the Bank for International Settlements (BIS). The paper is expected to be released in April 2024.

In conclusion, Nilekani's vision for Finternet represents a significant shift towards a more inclusive and user-controlled financial ecosystem. By integrating various asset types into a single infrastructure, it aims to provide greater choice and control for users while fostering innovation in the private sector.