What’s In Store For Indian Fintech Ecosystem In 2025?
by Akshit Pushkarna · Inc42SUMMARY
- Although the fintech ecosystem has jumped over a lot of regulatory hurdles in the past year, the sector is likely to see lesser compliance related challenges
- To capitalise on the IPO boom in India, many notable fintech entities including PayU, InCred, Pine Labs, are likely to go for public listing this year
- Coming from a two year period of diminished investor interest, fintech startups are poised to see a heightened investor interest in 2025
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Where do the events of 2024 leave India’s fintech ecosystem?
While the fintech opportunity is said to have grown 6X in the past ten years, the incessant regulatory challenges as well as concerns around profitability have hamstrung even the most scaled-up and capitalised companies.
Prominent examples from the past year include the derailing of Paytm’s banking arm after the RBI intervention on compliance lapses, while Sachin Bansal’s Navi Finserv saw a disruption in its lending business due to similar action against digital lenders.
On the other hand, changes by SEBI left the likes of Groww and Zerodha staring at a bearish future.
When it comes to the fortunes of PhonePe, CRED, Google Pay and others, profitability is the single-biggest hurdle in the way, even as the UPI opportunity has grown beyond Indian territory and expanded overseas.
Fintech Predictions For 2025
Considering the mixed bag that was the past year for Indian fintech, will we see the scales tilt towards a particular outlook in 2025? Will fintech startups make the most of the IPO opportunity, and which areas will see the biggest disruption from AI?
These are some of the most pressing questions for fintech startups today — especially as they deal with the entry of giants such as Jio Financial Services, and competition from regulated banks also eyeing super app success.