How two RBI circulars could impact fundraising in fintech space going ahead

Fintechs have to read the regulator better even as the sector improves the quality of data on offer

Ask Vinayak Burman, founder and managing partner of Vertices Partners, a law firm, how deep the cut will be for Indian fintech’ fund-raising, and he says: “They will be compelled to revisit their business models. Higher scrutiny prior to deal closures is expected.” Fintechs have had a bull run. According to Bain & Company (India Fintech Report 2022: Sailing Through Turbulent Tides), they have guzzled $35 billion since 2000. An estimated $8.4 billion will flow in 2022 — healthy, but lower from the $10 billion in 2021.

This fall of $1.6 billion may have otherwise been viewed as a blip, but