Money will be allocated to risk and compliance.
Rakesh Pojata, a partner at consulting company Bain & Company, claims that stricter regulatory oversight and reduced liquidity will cause India’s $50 billion fintech industry to experience a headwind that will increase the cost of capital in the upcoming year.
Investment rates are changing as investors become more diligent.
Investors don’t simply consider growth rates in terms of clientele and loan volume; they also consider actual monetization rates, according to Pozhat.
The Indian government has increased its control of fintech lending this year in response to instances of fraud and misconduct, compelling platforms to reconsider their business models, he added.