Tough times ahead for Indian fintech startups
India’s fintech industry will have a tough times in 2023 rather tougher than other industries in the startup sector. Indian fintech firms had a dream run since the past few years which saw investments pouring in from heavyweights like Berkshire Hathaway, Softbank and Sequoia in the billions might not be able to secure such funding anymore due to the tougher legal scrutiny by the Indian Government and the liquidity crisis in the west.
Regulatory hurdles
Indian Government has stepped up its vigilance over the country’s fintech space owing to various frauds and irregularities forcing the players to rethink their business model and most importantly forcing the foreign investors keen to invest in this space to step back.
The cost of capital will get dearer for the bigger players while it will be next to impossible for new entrants to get any. Apart from edtech, fintech will be the most affected startup space this year in India.
Monetization issues
Another major concern for the Indian fintech startups monetization- currently to gain traction they are offering freebies but once when they decide to monetize it needs to seen how many customers actually stay back.
