Fintech

Lendingkart Finance, backed by Temasek, faced losses before tax in 2024-25, breaching a covenant on its ₹75 crore bonds. The company is seeking a waiver from bondholders, who are likely to grant it given the guarantee from Lendingkart Technologies and Temasek's increased stake. Despite the losses and a shrinking loan book, investors are comforted by Temasek's commitment and past investments.

B2B ecommerce unicorn Udaan raised fresh funds in a round led by existing investors. This and more in today’s ETtech Top 5.

Fintech may still be a small slice of global finance, but it’s scaling fast. A new report reveals five big trends—from smarter AI to rising onchain finance—that are reshaping the landscape. With fintech revenues growing 21% year-on-year, it’s clear the sector is outpacing traditional financial services.

After a torrid time on Dalal Street, new-age firms have taken a turn towards profitability in the March quarter. This and more in today’s ETtech Morning Dispatch.

Fintechs are no longer scrappy outsiders. They’re scaling faster than traditional players and increasingly, regulators are recognising them as a permanent fixture in the financial services industry, QED Investors' cofounder Nigel Morris told us. In an exclusive interview during his annual visit to India, Morris said fintechs are beginning to dominate categories such as earned wage access, money transfers, and neobanking.

Welcome to a new edition of ETtech Unwrapped – our weekend newsletter packed with the most important stories this week. Let’s take a look.

Startups in India raised $1.06 billion in May 2025, up 12% from the same period last year, across 79 funding rounds. Key deals included PB Healthcare Services, Porter, Euler Motors, Citykart, and Routematic, according to data from Tracxn. In comparison, startups raised around $1.02 billion from 104 rounds in April 2025.

PayU has expanded its board, appointing three new directors, including former RBI deputy governor Subhash Mundra. The move strengthens its push to build a full-stack digital financial services platform. Recently, PayU received final RBI approval to operate as an online payment aggregator and has begun onboarding new merchants.

Razorpay had applied to the regulators for the reverse flip under amended rules, which do not require companies to apply to the NCLT. Razorpay needed approval from the Reserve Bank of India (RBI) and eventually a nod from the Ministry of Corporate Affairs.

Buy now, pay later services in India are losing traction due to stricter regulations and credit quality concerns. Fintech companies like PayU and Paytm are shifting from BNPL to EMI-based lending. Banks and NBFCs are also becoming more cautious, focusing on risk management and compliance in unsecured consumer credit.

The company reported a quarterly EBITDA of Rs 113.04 crore for March '25, an increase from Rs 5.42 crore year-on-year (YoY).

Finwizz and Wishfin are merging to form a tech-driven, omni-channel financial distribution platform targeting IPO in 24 months. The combined entity leverages Finwizz’s distribution and Wishfin’s digital strengths, aiming to scale credit aggregation and attract strategic capital.

Finance Minister Nirmala Sitharaman praised India’s fintech sector for enhancing digital public infrastructure and enabling inclusive financial services for merchants and MSMEs. During a visit to Pine Labs in Noida, she reviewed fintech innovations and interacted with beneficiaries of digital initiatives. She highlighted how DPI, including direct benefit transfers, has transformed service delivery and empowered millions, especially women.

The Reserve Bank of India has instructed finance companies to exclude default loss guarantees (DLGs) from fintech firms when provisioning for stressed loans, impacting digital lending service providers. NBFCs must now make full provisions on these loans, diminishing their appeal for new business.

While AI excels at tax compliance mechanics, it lacks the human intuition crucial for personalized tax planning. Human advisors offer strategic guidance, and provide clarity amidst complex regulations, fostering financial security and confidence.

Facing intense competition and pricing pressures in the core payments business, large payment aggregators in India, such as PayU, Razorpay and PhonePe, are developing and deploying fraud detection software platforms for banks and fintech companies. They are pitching these tools to banks, offering them a higher degree of safety for their customers as well as better transaction success rates.

Info Edge, the parent company of Naukri.com, has secured shareholder approval to invest up to Rs 1,000 crore in Info Edge Venture Investment Fund III, enabling further investments in startups. Smartweb Internet Services Ltd. will manage the fund. The company's early investments in Zomato and Policybazaar are now valued at Rs 31,500 crore.

Go Fintech, a global financial technology firm, is set to expand into the Australian market, spearheaded by Executive Director Sadaf Roksana. The company plans to invest in early-stage fintech startups, focusing on AI-powered services and RegTech solutions. Go Fintech also aims to collaborate with financial institutions and regulatory bodies to implement AI-driven systems, enhancing financial inclusion for underserved communities.

A slowdown in unsecured loan disbursals by banks and NBFCs has hit fintech firms like Paytm, MobiKwik, and Paisabazaar. These companies are shifting focus to secured lending and payments. Regulatory nudges and risk aversion have limited fintechs' role in underwriting, affecting growth and revenue from financial services in FY25.

PB Fintech, parent of Policybazaar and Paisabazaar, experienced a stock decline of 3.74% despite reporting a substantial rise in Q4 net profit, surging 185% to Rs 170 crore. While the insurance premium collection through Policybazaar significantly increased, the stock's performance lagged behind the Sensex. Analysts' ratings are mixed, with a 12-month price target suggesting a potential downside.