Last Week's 14 Fintech Updates You MUST Know

Happy Monday everyone!

Today I am back with another weekly update for the Fintech Companies. Covering updates in the regulatory or economic side of the Fintech market for Indian companies.

If you run a Fintech Company in India. Or you plan on expanding your Fintech Company in India. Then this becomes important for you.

Here are the main things that happened in the last week.

A) Fintech Developments & Market Shifts

1) Bill.com’s Growth Challenges Amid Market Changes

Company Overview: Bill.com, a key player in SMB-focused fintech, has a market cap of $5.45 billion and processes $76 billion in Total Payment Volume (TPV) per quarter.

Financial Snapshot:

• 16.42% YoY revenue growth, but slower than expected.
• Gross profit margin at 85.05%, showing strong profitability.
• Take rate dropped to 15.6 basis points, raising concerns.

Competitive Landscape & Strategy:

• Expanding international payments and supplier solutions.
• Strengthening partnerships, including an extended deal with Bank of America.
• Targeting 20% of TPV market share in the long term.

Challenges Ahead:

• Muted SMB spending could slow revenue growth.
• Currency fluctuations impacting international payments.
• Growth in low-monetization products (ACH, checks) weighing on earnings.

Market Outlook: Analysts remain divided, with price targets ranging from $57 to $120. While some expect core revenue growth to accelerate in FY26, short-term market pressures persist.

2) Fintech Giants Push Expansion Despite Stock Volatility

Block (formerly Square): Stock fell 18%, but continues expansion, integrating Buy Now Pay Later (BNPL) via its $29 billion Afterpay acquisition.

Affirm: Stock jumped 22%, with 35% higher GMV ($10.1 billion) and a 47% revenue surge to $770 million.

PayPal: Reported $437.8 billion in total payment volume, slightly missing projections but still expanding merchant services via Venmo.

Key Takeaway:

• Despite market fluctuations, major fintech firms are diversifying their offerings, focusing on embedded finance and credit services to sustain growth.

3) Maharashtra Government Backs Fintech & AI Startups for Economic Growth

Govt’s Focus on Fintech & AI: Maharashtra CM Devendra Fadnavis emphasized fintech and AI as pillars of India’s trillion-dollar economy goal at Mumbai Tech Week 2025.

Major Developments:

• MMRDA & NPCI MoU: NPCI to establish its global HQ in Mumbai’s BKC.
• Meta Collaboration: Maharashtra government partnering with Meta for the Aaple Sarkar WhatsApp Chatbot.

Planned Mega Projects:

• Vadhan Port Project: A JNPT-scale port to boost global trade.Navi Mumbai International Airport: Expected to drive new tech & commercial hubs.Smart City Development: Creating 3x the land area of Mumbai for future industries.

Fintech Impact:

• Govt’s push for faster approvals and digital infrastructure will attract more fintech startups.
• Favorable policies for AI-driven financial services will likely spur investment in the sector.

4) UPI Crosses 16.99 Billion Transactions in January, Hits ?23.48 Lakh Crore

Record-Breaking Growth:

• UPI transactions hit 16.99 billion, with total value at ?23.48 lakh crore in January 2025.
• FY24 volume exceeded 131 billion transactions, with ?200 lakh crore total value.
• UPI now accounts for 80% of India’s retail payments.

P2M (Person-to-Merchant) Transactions Lead:

• 62.35% of UPI volume now comes from P2M transactions.
• 86% of these payments are under ?500, proving UPI’s dominance in small-value transactions.

Global Expansion:

• UPI is now live in 7+ countries, including UAE, Singapore, France, and Sri Lanka, enabling cross-border transactions for Indians.

What It Means:

• India’s UPI model is being studied globally, with Cambridge experts citing it as a blueprint for digital finance success.

5) Paytm Partners with AI Startup Perplexity for Financial Literacy

AI-Powered Financial Search:

• Paytm integrates AI-driven search technology from Perplexity AI, allowing users to ask financial questions and receive instant, real-time insights.
• Supports regional languages, expanding access to financial knowledge.

CEO Insights:

• Vijay Shekhar Sharma (Paytm): AI will revolutionize financial literacy for millions.
• Aravind Srinivas (Perplexity): AI-powered insights will empower Indian consumers to make informed financial decisions.

Why It Matters:

• Bridges financial literacy gaps, helping users better understand investments, loans, and credit management.

B) Fintech Investments & Economic Developments

1) Oxyzo Secures ?100 Cr Debt from AK Capital for Expansion

Debt Issuance Structure:

• 1,00,000 Non-Convertible Debentures (NCDs) issued at 9.75% interest for 24 months.

How Oxyzo Plans to Use the Funds:

• Enhancing liquidity for seamless business operations.
• Expanding embedded finance & supply chain credit solutions.

Why It’s Important:

• Helps Oxyzo scale its SME-focused lending without equity dilution.

2) Cred Introduces ‘Svalbard’: Mutual Fund-Backed Credit Lines

New Feature for Users:

• Allows pledging mutual funds as collateral for digital credit lines.
• Interest rates start at 8.99%, with instant approvals.

Additional Credit Management Tools:

• Aurora: Transforms credit scores into dynamic, animated visuals.
• Foresight: AI-powered credit score predictor for financial decision-making.
• Compass: Personalized roadmap to improving credit scores.

Kunal Shah’s Vision:

• Cred aims to turn credit from an anxiety-inducing experience to an empowering financial tool.

Why It’s a Game-Changer:

• Encourages better credit behavior while offering easier access to credit.

C) Fintech Business Moves & Strategic Expansions

1) Flipkart-Backed Super.money Acquires BharatX to Strengthen Checkout Financing

What Happened?

• Super.money acquired BharatX, a checkout financing platform, in an all-cash deal.
• The acquisition will enable BNPL & EMI-based payments for consumer durables via UPI credit lines.
• BharatX’s core team will integrate its technology with Super.money’s offerings.

Why This Matters

• Super.money is the 6th largest UPI TPAP with 10M+ users.
• Plans to roll out a secured BNPL product, a first in this category.
• BharatX has 200+ brand partnerships, and Super.money is in talks to continue these collaborations.
• Targeting D2C & e-commerce brands, including Flipkart.

What’s Next?

• Launch expected in Q1 FY26.
• Expansion of banking partnerships to support checkout financing.

2) Network International Partners with MTN Group Fintech for Digital Payments Expansion

What’s the Deal?

• Network International, a MEA-based digital commerce leader, will act as the payment processor for MTN Group Fintech.
• The partnership will expand card issuance & transaction processing in Rwanda, Uganda, Ivory Coast, and Nigeria.

Key Offerings & Benefits

Transaction Processing: Secure & seamless payment solutions.

• Card Management: Issuance, activation & lifecycle management.
• Fraud Prevention: Enhanced security to protect transactions.

Why This Matters?

• MTN Group Fintech is Africa’s largest mobile financial services provider.
• This deal strengthens financial inclusion, allowing millions of customers to access global and local financial services.

3) DPIIT & Paytm Join Forces to Support Fintech Hardware Startups

What’s the MoU About?

• The Department for Promotion of Industry and Internal Trade (DPIIT) & Paytm signed an agreement to boost fintech hardware innovation.
• The initiative supports fintech startups with funding, incubation, mentorship, and regulatory guidance.

Key Focus Areas

• Promoting Indian fintech hardware: PoS devices, UPI-enabled tech, digital wallets & Soundbox technology.
• Incubation & mentorship programs for fintech entrepreneurs.
• Funding access through investor networks.
• Paytm Foundation to support deep-tech startups in Climate Tech, Web3, Agritech, & Mobility.

Why This Matters?

• Strengthens ‘Make in India’ for fintech hardware.
• Aligns with India’s push for digital transactions & payment infrastructure.
• Positions Paytm as a key driver in India’s fintech innovation landscape.

D) RBI Regulations & Compliance Updates

1) RBI Fines IIFL Samasta Finance ?33.10 Lakh for Regulatory Violations

What Happened?

• IIFL Samasta Finance penalized for:Charging interest before actual loan disbursement.Incorrectly classifying NPAs as standard assets.Issuing multiple customer IDs instead of unique identifiers.

Why It Matters?

• Highlights RBI’s strict monitoring of NBFC compliance.
• Aims to enhance transparency & fair lending practices.

2) HSBC India Fined ?66.60 Lakh for KYC & Reporting Lapses

What’s the Penalty For?

• RBI flagged HSBC for:Outsourcing AML alerts disposal to a group company.Failing to report unhedged forex exposures to credit bureaus.Opening savings accounts for ineligible entities.

Why This Matters?

• Emphasizes regulatory compliance for foreign banks in India.
• Ensures tighter control on KYC & forex exposure reporting.

3) RBI Imposes ?1 Lakh Penalty on Lasalgaon Merchants Co-op Bank

What Happened?

• The Nashik-based co-op bank was fined for:Sanctioning additional loans to clear existing debt.

Why It Matters?

• Strengthens RBI’s oversight on cooperative banks, ensuring better credit risk management.

4) RBI Reduces Risk Weights on NBFC & Microfinance Lending

What’s Changing?

• RBI restores lower risk weights for commercial banks’ lending to:NBFCs.Microfinance institutions.

Why This Move?

• Encourages more credit flow to NBFCs.
• Supports economic growth by improving lending to underserved sectors.

Industry Reaction

• ICRA Analysts: This move will boost credit flow and support overall economic expansion.
• Expected to improve retail loan availability via NBFCs.

I hope this was useful to you guys working in the Fintech Space.

The fintech space is everchanging, so staying up to date with information will help you make smart decisions for your business.

Again, If I see any notable changes or updates on the Fintech Side during the week, that can help Fintech Companies, I will compile them. And then share them next week!

Btw - I run a legal firm that's a one-stop solution for Fintech Companies in India.

Whether you are starting out in India, or expanding to the Indian market, DM ?? me if you need legal help with:

1) Business Registration

2) Contract Drafting or Review

3) Compliance

4) Answering any legal questions

See you tomorrow!