Happy Monday, everyone!
MTLegal Team is bringing you a weekly update on everything that happened in the fintech space over the past week.
Our goal with these updates is to inform you about any new developments, trends, regulations, or notable events in the fintech sector.
This will help fintech companies plan, protect, and preserve their businesses based on market changes and regulatory updates.
Here’s last week’s update:
A) Noteworthy Mergers and Expansions in Fintech
1) NCLT Greenlights Slice-NESFB Merger
Overview: The National Company Law Tribunal (NCLT) approved the merger between fintech company Slice and North East Small Finance Bank (NESFB).
Why It Matters: This merger is significant as it allows Slice to expand its reach into the small finance bank sector, enhancing financial inclusion in India.
Future Outlook: The partnership aims to use advanced technology and NESFB’s local connections to offer more financial services, particularly to underserved communities.
2) Axio Secures $20 Million Funding from Amazon
Overview: Fintech firm Axio raised $20 million from Amazon’s Smbhav Venture Fund, bringing its total funding to $232 million.
Why It Matters: The funds will help Axio expand its lending services and offer more credit products to millions of customers across India.
Strategic Vision: Axio plans to use this investment to scale its loan offerings and continue providing credit access to a broader customer base.
3) PB Fintech Emerges as Global Leader in 2024
Overview: PB Fintech, the parent company of Policybazaar and Paisabazaar, became the best-performing fintech stock worldwide in 2024.
Key Drivers: The company’s success is driven by solid business strategies, increased customer base, and efficient regulatory management.
Global Impact: PB Fintech’s achievement underscores India’s growing influence in the global fintech sector and is likely to attract more investment in Indian fintech companies.
4) Stockify Fintech Expands to Kolkata, Targeting Eastern India
Overview: Stockify Fintech, known for offering unlisted and Pre-IPO shares, expanded its operations to Kolkata.
Why It Matters: This move aims to tap into the vibrant business community in Eastern India, offering unique investment opportunities to High Net-Worth Individuals (HNIs) and Non-Resident Indians (NRIs).
Growth Strategy: The expansion is part of a broader plan to increase investor access to unlisted shares and other financial products in the region.
5) TransBnk Raises $4 Million to Boost Transaction Banking
Overview: Mumbai-based TransBnk secured $4 million in Series A funding led by 8i Ventures.
Purpose: The funds will be used to expand its network of banking partners and pursue global expansion, especially in the Middle East and Southeast Asia.
Innovation: TransBnk is revolutionizing transaction banking by offering advanced services that cater to micro and small entrepreneurs, making financial transactions more accessible.
B) Shifting Dynamics in India’s Financial Sector
1) TFCI Ventures into Digital Retail Lending
Overview: Tourism Finance Corporation of India (TFCI) announced its entry into short-term retail lending through fintech platforms.
Significance: This move allows TFCI to tap into the growing demand for quick and convenient loans, particularly among younger customers.
Future Plans: TFCI aims to diversify its offerings and strengthen its balance sheet by expanding into the retail lending market.
2) Kissht Revolutionizes Digital Lending with Customer-Centric Innovations
Overview: Kissht, an Indian fintech platform, is setting new standards in digital lending by focusing on customer needs and leveraging advanced technology.
Key Innovations: The platform uses AI and digital tools to streamline loan approvals, making the process faster and more user-friendly.
Impact: Kissht’s approach is helping it stand out in the competitive fintech market by offering tailored lending solutions that meet the specific needs of its diverse customer base.
3) Piramal Finance Expands with Over 500 Branches
Overview: Piramal Finance surpassed 500 branches and plans to add 100 more in FY25, focusing on expanding its reach in underserved markets.
Growth Strategy: The company is rapidly expanding its retail portfolio, offering a wide range of loan products to customers in metro-adjacent areas and Tier 2 & 3 cities.
Market Impact: With a strong presence in Bharat markets, Piramal Finance is set to further increase its assets under management and customer base.
4) India Introduces UPI Payment Service in Maldives
Overview: India signed an agreement with Maldives to introduce the Unified Payments Interface (UPI) in the island nation, boosting its tourism sector.
Significance: This initiative is expected to enhance digital financial inclusion in Maldives and positively impact the country’s economy.
Diplomatic Relations: The agreement also highlights the strengthening of India-Maldives relations, with UPI set to make a significant impact on tourism and local businesses.
C) New Developments in the Business World
1) Amazon India May Introduce a Standalone App for Amazon Pay
Overview: Amazon is considering launching a separate app for its digital payments service, Amazon Pay, in India.
Why It Matters: This move could increase Amazon Pay’s visibility and usage, allowing it to compete more effectively in India’s growing digital payments market.
Current Status: Amazon is still in discussions with the National Payments Corporation of India (NPCI) for approval, and the plans could change or be shelved.
2) BharatPe Expands Credit Offerings with New Secured Loans
Overview: BharatPe has launched new secured loan products, including two-wheeler loans and loans against mutual funds (LAMF), for its merchant partners.
Significance: This expansion into secured loans opens new revenue streams for BharatPe and strengthens its engagement with merchants.
Financial Impact: The company expects these new loan products to significantly contribute to its revenue in the coming months.
3) Strengthening International Ties: India to Connect UPI with Malaysia’s Paynet
Overview: India and Malaysia plan to link India’s Unified Payments Interface (UPI) with Malaysia’s Paynet, as part of a broader strategic partnership.
Importance: This initiative will facilitate smoother financial transactions between the two countries and enhance digital cooperation in the ASEAN region.
Additional Agreements: India also pledged support for Malaysia’s ASEAN Chairmanship in 2025 and announced several bilateral initiatives in education and trade.
4) SBI Mutual Fund Gets RBI Nod to Acquire Stake in Karur Vysya Bank
Overview: The Reserve Bank of India (RBI) approved SBI Mutual Fund’s plan to acquire up to 9.99% of Karur Vysya Bank’s share capital.
Conditions: SBI Mutual Fund must maintain this stake within a year and ensure compliance with RBI regulations, or risk losing the approval.
Impact: This acquisition strengthens SBI Mutual Fund’s position in the financial sector and highlights its ongoing growth and influence in the market.
D) RBI’s Recent Regulatory Moves
1) RBI Introduces New Self-Regulation Framework for Financial Entities
Overview: The RBI has released a framework to recognize Self-Regulatory Organisations (SROs) in the financial markets, encouraging entities to self-regulate under the RBI’s oversight.
Purpose: The framework aims to promote ethical conduct, enhance compliance, and ensure the sustainable development of financial markets.
Key Features: SROs must have strong governance, transparency, and independent operations, with a focus on promoting best practices and innovation in the sector.
2) RBI Updates E-Mandate Framework to Include Auto-Replenishment for FASTag and NCMC
Overview: The RBI has updated its e-mandate framework to include auto-replenishment for FASTag and National Common Mobility Card (NCMC) balances.
Why It Matters: This change simplifies recurring transactions that are irregular, such as toll payments and mobility card top-ups, by removing the need for pre-debit notifications.
Background: The update aligns with the RBI’s ongoing efforts to balance customer protection with the practical needs of digital payments, reflecting its commitment to modernizing India’s financial infrastructure.
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We hope you found this update insightful.
MTLegal Team is here to support everyone in the fintech sector—whether it’s for licensing, registration, or contractual needs.
We’ve got your back.
Contact us today, and let’s protect the business you’re building!
