India remains one of the most influential fintech markets globally. During a recent visit to Mumbai, CEO Dave Nangle, CIO Alexis Koumoudos and Principal and VEF’s India expert Shashi Mahajan, met with founders and investors to assess how the ecosystem is evolving. Their conversations point to a market where liquidity remains strong, but public market discipline and regulatory oversight are raising expectations for growth.
What is the mood in India’s fintech market right now?
The market feels disciplined rather than cautious. Founders are still building ambitiously, but raising capital now requires clearer earnings quality, stronger governance and a credible path to liquidity for investors. Public markets are setting the tone, with listed fintech companies such as Paytm, PB Fintech, GoDigit and Pine Labs acting as benchmarks. Liquidity remains strong, supported largely by domestic capital, but pricing is sensitive. Growth is rewarded when it translates into visible operating strength and quickly punished when it does not.
In january this year, our portfolio company Juspay raised an additional $50m at a higher valuation than their previous raise less than 12 months ago, which is a testament to investor apetite for companies of Juspay’s high quality business.
How do you see India’s public markets shaping the broader fintech ecosystem?
IPO remains the primary exit route for scaled fintech in India. Several companies we met are actively preparing for listings within the next one to three years, with PhonePe widely seen as the next benchmark IPO. The prevailing strategy in successful names has been to list, sell down gradually, and allow time for public markets to reassess value. At the same time, secondary transactions are becoming more common, giving investors flexibility without forcing premature listings.
Where is momentum strongest in India today, and what could slow it down?
In lending, capital is flowing toward models with built-in repayment safeguards, such as secured credit and payroll-linked lending. These businesses are proving more resilient and better positioned to access funding. Early unsecured consumer lending remains highly competitive and more exposed to credit risk. The Reserve Bank of India continues to prioritise stability, particularly around pricing discipline and responsible lending, which favours well-governed, transparent platforms. Funding remains available for stronger balance sheets, and cost of capital is becoming an increasingly important competitive advantage.
Which business models and companies stood out during the trip?
India’s private fintech market is deep, with strong activity from seed through late stage. Among the companies we met, Slice stood out as a scaled digital banking platform operating with a banking license and clear funding control. Refyne impressed with its payroll-linked model and disciplined execution, while Ambak presented a compelling early-stage opportunity in digitizing housing finance workflows. The broader ecosystem also feels increasingly institutional, with strong local investors supporting the next generation of fintech companies.