FatakPay co-founder calls sustainable growth fintech’s next competitive advantage
FatakPay co-founder Amit Goyal says Indian fintechs should prioritise profitability, compliance, retention and trust as funding fell to $889 million in H1 2025, from $5.5 billion in H2 2021.
What happened
FatakPay co-founder Amit Goyal argues Indian fintechs must prioritise profitability, compliance, customer retention and trust over rapid scale. The article
Key facts
- India fintech funding: $889 million in H1 2025
- India fintech funding: $5.5 billion in H2 2021
- India Financial Inclusion Index: 67.0 for year ended March 2025
- India Financial Inclusion Index: 64.2 in March 2024
Why this matters
Corporate-development teams should target fintech partnerships or acquisitions that add trusted, compliant capabilities with clear paths to sustainable profitability.
What to watch
- Quarterly Indian fintech funding totals, down-round frequency and shutdown or consolidation announcements.
- RBI enforcement actions, licensing changes, digital-lending rules and tighter KYC or data-governance requirements.
- Merchant churn, settlement reliability, fraud rates, complaint volumes and net promoter scores.
- Credit delinquencies, collection costs and loss rates in unsecured consumer and SME lending.
- Evidence that major fintechs are reducing incentives while maintaining payment volume and active-user retention.
- Reallocate acquisition spending toward retained, transacting customers and merchants rather than top-line user additions.
- Build profitability dashboards around contribution margin after fraud losses, credit costs, incentives, servicing and compliance expense.
- Strengthen KYC, transaction monitoring, cyber resilience, customer support and disclosures before scaling new products.
- Expand higher-retention revenue pools such as merchant software, reconciliation, embedded credit, insurance and subscription services.
- Prepare for opportunistic partnerships or acquisitions of smaller fintechs with useful merchant distribution, licenses or technology.