India's new-age economy is projected to nearly triple to around $300 billion in revenue by financial year 2030-31 (FY31) from about $100 billion in 2025-26 (FY26), according to a report by Redseer Strategy Consultants. The sector comprises digitally native businesses and companies that use technology as a core part of their business model, unlike traditional businesses where digital is primarily a secondary channel. The combined revenue of domestic new-age companies is estimated to have risen from $33 billion in FY22 to around $100 billion in FY26. As per Redseer, this growth will be primarily driven by consumption-led sectors and emerging technologies like AI, driven by AI, knowledge capital, and digital innovation.
Consumption-led sectors, including consumer goods, retail and leisure, are expected to remain the cornerstone of growth, reaching about $150 billion by FY31 at an annual growth rate of around 25%. That would account for nearly half of the new-age economy, although growth would moderate from 32% annually between FY22 and FY26. The emerging technology-led sectors, including technology, media and telecom (TMT), AI and advanced manufacturing, are expected to grow slightly faster at around 26% annually. Their share of the new-age economy is projected to rise from about 31-33%. Peak XV Partners is witnessing this trend with recent investments including insuretech startup Plum's $21 million funding, travel fintech startup Scapia's $63 million round, and quick commerce company Firstclub's $55 million funding.
The collective profit pool of new-age companies turned positive in FY25 at $1.4 billion, according to the report. However, profitability remains heavily concentrated in banking, financial services and insurance (BFSI). As Redseer notes, "BFSI alone is 140 per cent of the FY25 pool; take it out and every other sector put together is still loss-making." A $300-billion top line by FY31 implies a total profit pool of $5-10 billion (2-3% margin), compared to 12-18% for listed FMCG firms and 20-25% for IT services. Private market funding for new-age companies is projected to increase 25% year-on-year to $17 billion in calendar year 2026. By calendar year 2030, total public and private fundraises for new-age companies are expected to reach $50 billion annually, comprising $35 billion in private funding and $15 billion through public listings.
Consumer brands are reaching scale faster, helped by the expansion of direct-to-consumer (D2C) channels and quick commerce. The average time taken to reach ₹100 crore in revenue fell from 6.8 years for brands founded in 2016 to 3.4 years for the 2020 cohort. The time required to reach ₹500 crore in revenue also halved, from 7.9 years to four years. Redseer expects the number of new-age consumer brands with revenue above ₹100 crore to rise from roughly 90 in FY22 and 300 in FY26 to around 500 by FY31. However, scaling beyond the ₹500-crore wall remains a key hurdle due to the requirement of building deep offline distribution networks, modern trade capabilities, and working capital infrastructure. Out of approximately 110 brands founded since 2016 that crossed ₹100 crore in revenue, only 26 have surpassed ₹500 crore, while eight have crossed ₹800 crore.
New-age companies are expected to account for about 40% of all Indian initial public offering proceeds by CY30, up from 25% at present. Growth is expected to be driven mainly by investments in BFSI, TMT and AI, which together accounted for 60-65% of deal value this year. The investment landscape is evolving with Peak XV Partners identifying new frontiers in wealth management, insurance, and specialized healthcare sectors. "Over the next two decades, India's fintech and financial services sectors will evolve significantly as the country gets richer and adds more millionaires and billionaires. This will create opportunities in areas such as wealth management," said Sakshi Chopra, managing director at Peak XV Partners. The firm has generated over $1 billion in realized proceeds between 2024 and 2025 and holds about $4 billion in public securities, while recently raising $1.3 billion in fresh capital commitments to deploy across India and select global markets.
