Perfios Collaborates with PwC India to launch a report on “How India spends: A deep dive into consumer spending behaviour”
Bengaluru, February 19, 2025 – Perfios, India’s largest B2B SaaS Fintech company, has partnered with PwC India to launch a report titled – How India spends: A deep dive into consumer spending behaviour. The report attempts to provide an in-depth analysis of the consumption patterns of Indians by examining the spending behaviour of over 30 lakh tech-savvy consumers.
The dataset analysed in the report comprises tech-savvy borrowers who primarily use FinTech, NBFCs, and other digital platforms. These borrowers were distributed across different geographies (from Tier 3 to metro cities) and income levels (from less than INR 20,000 to more than INR 1,00,000).
The insights into the consumption behaviour of consumers are used to provide strategic recommendations for FIs which are designed to help them develop curated value propositions and better partnerships to meet the evolving needs of consumers by capitalising on market trends.
Key insights and findings of the report include:
- Individuals across all city tiers allocate more than 33% of their income towards paying loan EMIs.
- People spend the highest amount of money on their obligatory expenditures, which accounts for 39% of their total spending, followed by 32% for necessity expenditures and 29% for discretionary expenditures.
- More than 62% of discretionary expenditures are allocated towards lifestyle purchases, which include shopping for fashion and personal care items.
- As the salary increases from entry-level earners to high-income earners, both the amount of money spent on food expenditure (ordering or eating out) and the frequency at which it is spent increase.
- The percentage of people performing transactions for online gaming is the highest for entry-level earners (<20k) at 22%. This gradually decreases to 12% as we move from entry-level earners to high-income earners (>$ 75k)
- The most popular mode of payment used for obligatory spending is Electronic Clearing Service (ECS). However, for both discretionary and necessary expenditures, UPI is the most preferred method.
- Average total amount spent on house rent is 4.5% higher in Tier-2 cities than it is in Tier-1 cities.
- People in Tier-2 cities spend the most on medical expenses, averaging 20% more per month than those in Tier-1 cities. A person in a Tier-1 city spends INR 2,450 per month on medical expenses, while metro residents have the lowest average expenditure at INR 2,048 per month.
Sabyasachi Goswami, CEO, Perfios, stated that “India’s consumer market is undergoing a transformation which is fuelled by the rising middle class, expanding rural markets and a digitally connected, aspirational population. As we witness rapid shifts in consumer behaviour, understanding how India spends becomes essential for financial institutions, policymakers and businesses which are looking to engage effectively with this dynamic market. This study provides insights into the spending habits of individuals across different income levels and geographical locations. The findings highlight both opportunities and challenges for financial institutions, offering actionable recommendations to cater to the evolving needs of consumers”.
Mihir Gandhi, Partner and Leader-Payments Transformation, PwC India added , “PwC India is pleased to collaborate with Perfios as the knowledge partner for this inaugural edition. This report is designed to help businesses, policymakers, and financial institutions understand evolving consumer behaviour and make informed decisions in a dynamic marketplace.
On the collaboration with PwC India as the knowledge partner for this report examining the spending behaviour of 30 lakh tech-savvy consumers, Sabyasachi Goswami, CEO Perfios, added “We would also like to express our heartfelt gratitude to PwC India for joining us as the knowledge partners for this report. The report is aligned with our core belief at Perfios that data has the power to empower, and we hope that this will be a valuable resource for decision-makers across industries, helping them make informed choices that can drive growth and create lasting value for Indian consumers.”
About Perfios:
Founded in 2008, Perfios is a global B2B SaaS company serving the Banking, Financial Services and Insurance industry in 18 countries, empowering 1000+ financial institutions. Through their pioneering software platforms and products, Perfios helps financial institutions to take big leaps by shaping their origination, onboarding, decisioning, underwriting and monitoring processes at scale and speed. Perfios delivers 8.2 billion data points to banks and financial institutions every year to facilitate faster decisioning, and significantly accelerates access to credit and financial services for their clients’ customers. Headquartered in Bangalore, with offices worldwide and with 75+ products and platforms, and over 500+ APIs, in Perfios, their clients have a confident and a robust start-to-end tech platform.
To download the report, click here
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