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) Pine Labs Enters Philippines Market via Strategic Tie-Up with GCash

Expansion Move:

• Pine Labs has partnered with GCash to enter the Philippines market, marking a significant step in its Southeast Asia expansion strategy.

• The collaboration will provide Pine Labs’ merchant commerce and digital payment solutions through GCash’s platform.  

Strategic Benefits:

• Aims to simplify payment acceptance for merchants and strengthen GCash’s merchant network capabilities.

• Supports faster, more integrated digital transaction systems across retail businesses in the Philippines.  

Market Context:

• Comes amid rapid growth in Southeast Asia’s digital payments, QR transactions, and mobile wallet adoption.

• The Philippines is emerging as one of the region’s fastest-growing digital finance markets due to rising smartphone penetration and government digitalisation efforts.

Broader Ambition:

• Reflects Pine Labs’ goal to become a major international merchant commerce platform, building on its presence in the Middle East and other Southeast Asian markets.

• The partnership is expected to accelerate digital commerce adoption for small and medium businesses in retail, hospitality, and related sectors.  

2) MobiKwik Swings to Profit in Q4 FY26 with Revenue at ₹289 Crore

Quarterly Performance:

• One MobiKwik Systems reported a net profit of ₹4.38 crore in Q4 FY26, compared to a net loss of ₹56 crore in the same period last year.

• Revenue from operations stood at ₹288.71 crore, up 8% year-on-year.  

Full Year Results:

• FY26 revenue declined marginally by 4% to ₹1,119 crore.

• Annual net loss narrowed significantly to ₹62 crore from ₹122 crore in FY25.  

Key Drivers:

• Growth in commissions from recharges, loan servicing, payment gateway, and technology platform services.

• Sharp reduction in lending-related operational costs contributed to the improved profitability.

• EBITDA turned positive at ₹17.4 crore versus negative ₹45.8 crore in Q4 FY25.  

B) Economic Highlights

1) Moneycontrol Elevates Ankit Fitkariwala as CEO – Lending

Leadership Move:

• Moneycontrol has elevated Ankit Fitkariwala as CEO – Lending to lead its rapidly scaling lending vertical.  

Business Evolution:

• Ankit joined in April 2023 and built the lending business from scratch, achieving over ₹1,000 crore in disbursals and enabling 1.5 crore+ users to access credit scores.

• The role will focus on driving exponential and profitable growth in personal loans, gold loans, loans against mutual funds, and other offerings.  

Strategic Vision:

• Supports Moneycontrol’s transition into a full-stack financial fulfillment platform beyond content, emphasising deeper value for users through seamless transactions and financial empowerment.  

2) Delhi Metro and Airtel Payments Bank Launch Co-branded RuPay ‘On-The-Go’ NCMC Cards

New Card Initiative:

• Delhi Metro Rail Corporation (DMRC) has partnered with Airtel Payments Bank to introduce co-branded RuPay ‘On-The-Go’ cards with National Common Mobility Card (NCMC) functionality.  

Key Features:

• Available as Debit cards and PPI-MTS; enables seamless travel across metro systems, buses, and other transit networks nationwide.

• Represents a major upgrade from existing DMRC cards limited to the Delhi Metro network.

• Cards will be available at all DMRC stations within 10 days, with digital recharge options via DMRC and Airtel apps.  

Strategic Alignment:

• Supports Government of India’s ‘One Nation, One Card’ vision for unified and interoperable transit payments.

• Enhances convenience for millions of daily commuters while advancing digital payments integration in public transport.  

3) Zerodha Co-Founder Nikhil Kamath Suggests Exploring Gold-Based Stablecoins for India

Kamath’s Views:

• Nikhil Kamath questioned the long-term suitability of dollar-backed stablecoins for India, suggesting they could strengthen dollar dominance in emerging economies.

• Praised UPI’s success and commended the government and regulators for resisting pressure on dollar-backed stablecoins.  

Alternative Proposal:

• Floated the idea of a gold-based stablecoin to monetise India’s large idle household gold holdings and potentially generate yields for holders.

• Highlighted India’s cultural affinity for gold and its massive private reserves as a strong foundation for such an instrument.  

Regulatory Context:

• Comes as India maintains a cautious stance on private cryptocurrencies while advancing digital public infrastructure like UPI and the digital rupee.  

C) Business Developments

1) Esperanza Partners with One Cool Stage to Tokenize Hong Kong Theatre IP

Strategic Collaboration:

• Esperanza Fintech has partnered with One Cool Stage Limited (subsidiary of One Cool Group) to co-present The Big Big Day, a Hong Kong theatre IP project.

• The tokenized fund managed by Esperanza is participating in the project, extending its regulated fintech solutions into theatre, cultural IP, and fan-engagement scenarios.  

Significance:

• Builds on Esperanza’s earlier tokenized live-entertainment offerings and explores new financing models for cultural and entertainment assets.

• Plans to launch tokenized experience applications for ticket redemption, exclusive merchandise, and enhanced audience interaction.  

Stakeholder Views:

• Ronald Leung, Group CEO & Chief Legal Officer, Esperanza, highlighted combining high-quality Hong Kong content with next-generation fintech infrastructure.

• Ella Wong, CFO, One Cool Group, noted the importance of innovative financial structuring for creative industries.  

Broader Ambition:

• Esperanza is evaluating a project pipeline exceeding HK$2 billion across entertainment, IP licensing, AI immersive experiences, and other real-world asset applications.  

2) India and UAE Strengthen Strategic Ties with Multiple Agreements During PM Modi’s Visit

Key Agreements:

• Several pacts signed focusing on energy security, strategic petroleum reserves, long-term LPG supplies, ship repair cluster at Vadinar, defence cooperation, agricultural research, MSME promotion, and digital payments integration.

• Investment commitments worth $5 billion announced in infrastructure, RBL Bank, and Sammaan Capital.  

Energy & Trade Focus:

• Builds on earlier $3 billion LNG deal; enhances long-term hydrocarbon supply stability for India amid global volatility.

• Supports target of doubling bilateral trade to $200 billion and advancing strategic defence partnership.  

Strategic Context:

• Reinforces UAE as a key partner for India in energy, investment, supply chains, and maritime security.

• Highlights growing convergence in economic diplomacy, fintech, renewables, and critical infrastructure.  

D) Regulatory Insights

1) RBI Issues Operating Framework for Outward Remittances by Non-Bank Entities

New Framework:

• Authorised Dealer Category-I banks can facilitate cross-border outward remittances for non-trade current account transactions via third-party online platforms without prior RBI approval for tie-ups.

• Para 10 of the Master Direction on Miscellaneous has been deleted.  

Compliance Requirements:

• AD banks remain fully responsible for FEMA compliance, KYC, transparency in FX rates, charges, timelines, and grievance redressal.

• Strict rules on fund handling, data privacy, customer information display, and ensuring remittances flow directly from remitter’s account to beneficiary’s account.  

Purpose:

• Streamlines outward remittance services while maintaining robust customer protection and regulatory oversight.  

2) RBI Imposes ₹3.10 Lakh Penalty on IIFL Finance

Penalty Details:

• Imposed on May 11, 2026, under RBI Act for non-compliance with Master Direction on Non-Banking Financial Company – Scale Based Regulation.  

Violation Sustained:

• Failed to pay the surplus amount realised from the auction of pledged gold articles (over and above the loan outstanding) to certain borrowers.  

Context:

• Based on statutory inspection as on March 31, 2025.

• Penalty reflects regulatory deficiencies and is without prejudice to further actions.  

3) RBI Imposes ₹5.80 Lakh Penalty on Appnit Technologies

Penalty Details:

• Imposed on May 11, 2026, under the Payment and Settlement Systems Act for non-compliance with KYC and Prepaid Payment Instruments directions.  

Violations Sustained:

• Allowed PPI accounts opened via Aadhaar OTP-based e-KYC to continue beyond one year without full identification.

• Failed to implement periodic review of risk categorisation of accounts.  

Context:

• Identified during statutory inspection for April 2024 to August 2025.

• Penalty addresses compliance lapses and is without prejudice to other actions.  

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.