DIGITAL LENDING STARTUPS
ET Exclusive: Global shocks won’t alter our plans for India, says Masahiro Kihara, CEO Mizuho Financial Group
India’s growing economy, young workforce, and expanding export base make it a key market for Mizuho Financial Group, according to CEO Masahiro Kihara. The Japanese banking major sees India as a long-term strategic partner and is considering additional investments beyond the $500 million capital already deployed.
Former startup execs bag $101 million in seed funds for new ventures in 2024, up 243% YoY: Report
According to a report by data intelligence platform Tracxn, former executives at startups who have floated their own ventures are 3X more likely to bag seed funds than others. The funding boost comes on the back of ESOP buyback-led liquidity, desire for new opportunities, return of talent from the US, and the impact of mass layoffs.
India signals: This is not the time to hold back
India demonstrates resilience amidst global economic challenges, marked by strategic RBI rate cuts and impressive GDP growth alongside low inflation. Structural reforms like Aadhaar, UPI, and GST, coupled with government capex and RBI liquidity measures, underpin this resurgence. Focus on empowering SMEs and liberalizing gold-backed loans aims to fuel job creation and financial inclusion.
Flexiloans raises another Rs 375 crore from Fundamentum, Accion and others
Flexiloans, an NBFC focusing on small businesses, secured Rs 375 crore in funding, led by existing investors like Fundamentum and Accion. This capital infusion, a mix of primary and secondary, will fuel its expansion into secured lending and insurance distribution. Flexiloans achieved profitability for three consecutive years, with Rs 263 crore revenue and Rs 3 crore profit in FY24.
Listed new-age cos’ road to profitability; QED’s Nigel Morris interview
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.
ETtech Deals Digest: Startups raise $142.7 million this week, up 8.5% on-year
Startups across seed, early and late stages raised the funds through 14 deals, compared to 64 in the year-ago period. Top deals across the week included Syfe, Udaan, Pepperfry and Stable Money.
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Flipkart secures NBFC licence from RBI, to begin lending from own books
Walmart-owned Flipkart has received a non-bank finance company (NBFC) licence from India’s central bank, allowing it to lend directly to customers and sellers on its platform for the first time. This enables Flipkart to offer loans independently rather than through partners, potentially boosting profitability. The e-commerce giant plans to start lending soon, pending internal approvals.
Quick commerce trade-off; Google still wants engineers
Quick commerce is gaining popularity at the expense of sales in other retail channels. This and more in today’s ETtech Top 5.
Fintechs tap rising health insurance costs with EMI-based premium financing for corporates, individuals
With health insurance premiums steadily rising, fintech startups like BimaPay Finsure and Finsall are making coverage more affordable by offering premium financing—spreading payments into EMIs rather than reducing costs. Initially targeted at individuals, this model is now being extended to corporates and MSMEs, helping them manage large group insurance premiums.
Udaan’s flat raise; Nykaa’s market woes
B2B ecommerce unicorn Udaan raised fresh funds in a round led by existing investors. This and more in today’s ETtech Top 5.
PhonePe’s 5% dilemma: Payments still dominate revenue as it gets IPO-ready
PhonePe, backed by Walmart, is preparing for an IPO. The company's revenue heavily depends on its payments business. Financial services contribute a small portion to its total income. Rivals like Paytm generate more revenue from financial services. PhonePe's insurance business is growing. Its credit business is still in early stages. The company's valuation and IPO pricing are under scrutiny.
Regulators realising fintechs are here to stay: QED’s Nigel Morris
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.
Gensol’s default; Ola’s dismal Q4
Happy Friday! Gensol Engineering has failed to make repayments on bonds that used BluSmart taxis as collateral. This and more in today’s ETtech Morning Dispatch.
Buy-now-pay-later offerings wane as fintechs pivot to EMI loans, consumer credit
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.
RBI’s new directive to NBFCs; Oyo’s third IPO attempt
The RBI has tightened rules on default loss guarantees (DLGs), a move that is likely to hit digital lenders hard. This and more in today’s ETtech Top 5.
From Hyderabad to Abu Dhabi: How Hub71 Is fuelling a new era of cross-border innovation
Strengthening cross-border innovation with India and the global startup community is a key focus for Abu Dhabi’s Hub71, says Deputy CEO Ahmad Alwan.
Groww files draft papers for IPO, eyes $700 million to $1 billion listing
Groww's IPO is being filed under Regulation 59C(5) of the Sebi ICDR Regulations, which permits confidential filing ahead of the formal DRHP. This route is increasingly being adopted by tech firms seeking regulatory feedback before making a public submission.
Top tech and startup stories this week
Welcome to a new edition of ETtech Unwrapped – our weekend newsletter packed with the most important stories this week. Let’s take a look.
Go Fintech eyes Australian expansion as global push for inclusive AI-driven finance accelerates
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.
Fintech startup Data Sutram raises $9 million from B Capital, Lightspeed
Fintech startup Data Sutram has raised $9 million in funding led by B Capital and Lightspeed. The company, which helps financial institutions combat fraud using AI and external data, will use the funds to expand its team, enhance its platform, and enter sectors like crypto, gaming, and insurance.
Fintechs lose loan steam; Google’s AI platform shift
Happy Wednesday! Digital lenders bore the brunt of the slowdown in unsecured lending after a regulatory diktat last fiscal. This and more in today’s ETtech Morning Dispatch.
Listed fintechs feel the pinch of lenders going slow on unsecured lending
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.
Mobikwik’s net loss widens to Rs 55 crore as revenue growth remains flat
Mobikwik parent One Mobikwik Systems reported an operating revenue of Rs 265 crore, almost flat against the Rs 268 crore reported in the December quarter. Mobikwik’s business was impacted by a slowdown in its lending operations, which reduced its contribution margins to 30% from 37% and also slowed disbursals.
PhonePe’s pre-IPO challenges; VC funds get AI edge
Happy Monday! Digital payments leader PhonePe is struggling with diversifying its revenue streams on the road to IPO. This and more in today’s ETtech Morning Dispatch.
UPI extras miss mark; Amazon streamlines India ops
Happy Friday! Most new features on Unified Payments Interface (UPI) have struggled to gain meaningful traction over the years. This and more in today’s ETtech Morning Dispatch.
JM Financial to grow 4 focused businesses going forward: Nishit Shah
JM Financial is focusing on four key business areas for growth. These include affordable housing, private credit, wealth and asset management, and corporate advisory. The company increased its stake in JM Financial Credit Solutions. They aim to originate, invest, and syndicate transactions. The wealth management business has seen increased AUM and investments.
Gold-loan fintech firms spot a glimmer in RBI’s draft rules
Bengaluru-based Rupeek, Chennai-headquartered Oro Money, Noida’s Indiagold and Manipal Fintech of Gurugram are a few of the major startups operating in this space. Earlier this year Manipal Fintech onboarded Puja Abhishek Singh as its new chief executive officer. Singh joined the company from Paytm, where she was heading business operations.
BluSmart’s salary delays; Banks face KYC reset
Happy Wednesday! After ceasing operations, BluSmart now faces a fresh challenge: delayed March salaries for its employees. This and more in today’s ETtech Morning Dispatch.
Lenders need OTP consent for KYC data access
The Central KYC Registry will mandate OTP-based consent for sharing customer data from May 9, 2025, adding a security layer to prevent misuse. While enhancing safety, this move could disrupt digital lending and onboarding processes due to infrastructure gaps, short implementation timelines, and reliance on registered mobile numbers for OTP delivery.
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