Fintech Companies - MUST READ

Happy Weekend 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) Emerging Trends

1) Razorpay Gains RBI Authorization for Cross-Border Payment Aggregation

License Milestone:

• Razorpay secured RBI's Payment Aggregator-Cross Border (PA-CB) license on December 2, 2025, enabling inward/outward cross-border payments under full oversight, per Entrackr and Business Standard.

• Supports exporters, SaaS, freelancers, D2C, global firms; used by Airbnb, Agoda, Shopify, Klook, Hostinger; 40% YoY growth.  

Platform Strengths:

• Accepts 130+ currencies via cards/wallets/local transfers (95% success); for India entry: Single integration for UPI/RuPay/EMIs/net banking/100+ methods, INR pricing, OTP checkout.

• Kumar (Co-founder/MD): "Trusted rails for global ambitions."  

Why It’s Empowering:

• Joins Easebuzz/PayU/Pine Labs with full PA capabilities; $741M raised (Lightspeed, Tiger, Peak XV).

• Simplifies $1.5T global commerce for Indian businesses.  

2) OneCard Halts New Card Issuances Amid RBI Data-Sharing Scrutiny

Regulatory Pause:

• FPL Technologies (OneCard) stopped new issuances after RBI letters to partners (BOB Cards, SBM India, Federal, CSB, South Indian, Indian Bank) seeking data-sharing clarity, per Economic Times December 6.

• Founded 2019 by ex-ICICI execs (Sinha, Hathi, Kumar); $25.5M December 2024 from QED/Peak XV/Z47; $1.3B valuation 2022 (Temasek).  

Contextual Tightening:

• Follows March 2024 pauses (Federal/South Indian); Scapia resumed March 2025 post-framework approval.

• RBI March 7, 2024, guidelines curb fintech back-door entry, limit data access/control.  

Why It’s Challenging:

• Partners must align; industry source: "Common arrangement needed."

• Impacts co-branded proliferation (Swiggy/Amazon/Flipkart); operational halt until resolved.  

3) Zaggle Completes Full Buyout of Rio Money for Consumer Credit Expansion

Acquisition Close:

• Zaggle acquired 100% of Rivpe Technology (Rio Money) for ₹22 Cr cash on December 4, 2025, per Economic Times and Business Standard.

• Follows July intent; co-founded 2023 by Bhattacharya/Amarnani; backed by Blume/Village Global; UPI QR/co-branded RuPay credit.  

Investment Plan:

• Up to ₹75 Cr in tranches for product/tech/GTM/consumer payments; follows Greenedge (September 2025, loyalty/rewards).

• Godkhindi (Zaggle MD/CEO): "Aligns with ecosystem ambitions."  

Why It’s Strategic:

• Zaggle (founded 2011, Narayanam): 50M+ prepaid cards, 3.5M users; enters UPI/credit cards.

• Scales enterprise spend to B2C; leverages Yes Bank ties.  

B) Economic Highlights

1) Jocata Charts AI Path for Credit and Compliance Innovation

Ecosystem Adaptation:

• Jocata's GRID.AI unifies credit/compliance/fraud on AI platform; SME DNA/Retail Persona for behavioral scoring; Sumpoorn MSME Index with SIDBI (100K+ MSMEs, 99 industries).

• Muddu (MD/CEO): "AI for 98% risk accuracy, real-time anomaly detection."  

Global Footprint:

• 50+ clients (banks/fintechs/insurers) in India/ASEAN/Middle East; Dubai office; partnerships for North America/APAC.

• BRE.AI: GenAI converts policy docs to rules (weeks to minutes); CAM Sahayak: 15+ AI agents cut prep from 25-30 days to 5-45 min.  

Why It’s Differentiated:

• Low-code modular vs. competitors; MSME Saathi/Pravardhan for insights/borrower curation; monsoon analysis for risk.

• 100+ APIs/AA/ULI integration; managed SaaS for scale.  

2) UPI-TIPS Linkage Must Prioritize Openness to Realize Potential

Integration Phase:

• RBI/ECB entered UPI-TIPS realization November 21, 2025, for instant India-EU remittances, per Statesman and Medianama.

• Technical/risk/settlement focus; G20-aligned for cheaper/transparent flows; expands UPI to 13 countries.  

Consumer/Business Gains:

• Real-time transfers cut days/fees; aids students/workers/tourists/SMEs; QR for Europe payments.

• Merchants access Indian market; $120B annual cross-border fees targeted.  

Why It’s Critical:

• Avoids fee creep/regulatory friction/data silos; ensures interoperability vs. walled gardens.

• Builds on Singapore/UAE/Mauritius; blueprint for global DPI.  

C) Business Developments

1) RBI Official Stresses Collaboration Amid Escalating Banking Threats

Agenda Overview:

• RBI Deputy Governor Swaminathan J delivered a six-point agenda on December 1, 2025, at Standard Chartered's "Success Through Synergy" event, urging risk centralization, customer focus, and bank-fintech partnerships, per ANI and Economic Times.

• Attended by leaders and VVS Laxman; "Traditional risks more complex, new threats like cyber/climate rising."  

Risk and Culture:

• Boards must foster risk-aware culture; outages now impact millions via cloud/outsourcing; "Understand tech/control/concentration risks."

• Fintech-bank as "batting partnership": Banks offer trust/compliance, fintechs agility/innovation.  

Why It’s a Call to Action:

• Customer needs: Simple products, quick grievances, inclusive design; fraud detection/sharing with law enforcement essential.

• Swaminathan: "Success through synergy"; governance/ethics/people foundational for resilience.  

2) Finfactor Attracts $15M to Scale Finvu's Account Aggregator Network

Series A Details:

• Finfactor (Finvu parent) raised $15M on December 1, 2025, led by WestBridge Capital, with Varanium Capital, DMI Sparkle Fund, IIFL Fintech Fund, per Economic Times and Business Standard.

• Funds for product scaling, analytics, full-stack BFSI tech; co-founded 2019 by ex-HSBC's Alandkar/Bhatia; Pune-based.  

Platform Reach:

• RBI-licensed Finvu AA: Secure consent-based data sharing for 50M+ users, 150+ partners (HDFC/Axis/Motilal Oswal/Canara/CRED).

• Multi-AA gateway, statement analyzer, loan monitoring, collections, wealth tools; Madhav (CEO): "Completes digital stack."  

Why It’s Expansive:

• Prior $2.5M seed (2022); Ramineedi (WestBridge): "Unlocks transparency/innovation"; team growth in lending/wealth.

• Advances open finance amid India Stack's rise.  

D) Regulatory Insights

1) RBI Penalizes Bansal Credits Limited with ₹6.2 Lakh for KYC Shortfalls

Penalty Imposition:

• RBI fined Bansal Credits Limited ₹6.2 lakh on December 2, 2025, for violating KYC Directions under RBI Act Section 58G(1)(b)/58B(5)(aa), per RBI release.

• Based on March 31, 2024, inspection; charges: No suspicious transaction alerts; failed CKYCR uploads.  

Process:

• Notice, reply, hearing sustained violations; targets compliance gaps, not transactions; further actions possible.

• RBI: "Regulatory deficiencies."  

Why It’s Vigilant:

• Enhances AML monitoring in Delhi-based NBFC (business loans/credit lines).

• Reinforces CKYCR for national data integrity.  

2) RBI Assesses ₹3.1 Lakh Fine on Keertana Finserv for Governance Lapse

Penalty Imposition:

• RBI levied ₹3.1 lakh on Keertana Finserv Limited (formerly Private Limited) on December 2, 2025, for breaching governance directions under RBI Act Section 58G(1)(b)/58B(5)(aa), per RBI release.

• Based on March 31, 2024, inspection; charge: >30% director changes (excluding independents) without prior RBI permission.  

Process:

• Notice, reply, hearing upheld violation; focuses on management change rules; not transaction validity; additional measures possible.

• RBI: "Regulatory deficiencies."  

Why It’s Governance-Centric:

• Ensures stability in Hyderabad NBFC (gold/MSME loans, AUM ₹2,348 Cr FY25, 50% growth).

• Mandates prior approval for board shifts in NBFCs.  

3) RBI Provides In-Principle Nod to Fino Payments Bank for SFB Transition

Approval Milestone:

• RBI granted in-principle approval to Fino Payments Bank Limited on December 5, 2025, for conversion to Small Finance Bank under 'on-tap' guidelines, per RBI release and Reuters.

• First payments bank eligible (resident-controlled, 5+ years operations); applied October-December 2023.  

Background:

• Founded 2006 as fintech, payments bank 2017; 16M customers (September 2025); Q2 FY26 profit ₹15.4 Cr (down 27.4% YoY).

• Gupta (MD/CEO): "Historic for technology-led inclusion."  

Why It’s Transformative:

• Enables lending vs. deposit-only model; Gandhi (ex-DG): "Payments banks unsustainable without SFB shift."

• Complements AU SFB's universal bank nod; boosts inclusion amid 570M Jan Dhan accounts.  

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 on the weekends!

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 with another Newsletter now.