Fintech Startups to Watch: Companies Gaining Traction in July

India's fintech sector experienced a busy July, with the focus shifting from funding rounds to IPO preparations. Lending unicorn Moneyview received final 'observation letter' from the Securities and Exchange Board of India (SEBI), clearing it for a potential Initial Public Offering (IPO) of up to ₹1,500 crore (approximately $180 million USD).

Consolidation within the sector also accelerated. Digital lending marketplace Mynd Fintech acquired supply chain financier C2FO India. The combined entity is projected to process transactions worth ₹60,000 crore (approximately $7.2 billion USD) annually. Separately, listed fintech firm Zaggle announced plans to acquire a 20% stake in cross-border payments company Unobanc for $1.5 million USD.

Despite these moves, transaction volume for India's Unified Payments Interface (UPI) declined 2.1% in June compared to May, with total transaction value decreasing by 3.3%. The Reserve Bank of India (RBI) has requested the National Payments Corporation of India (NPCI) to explore raising UPI transaction limits for certain merchant use cases, while maintaining the ₹1 Lakh peer-to-peer cap.

Regulatory bodies have also tightened their stance on cryptocurrencies. The Central Board of Direct Taxes (CBDT) issued guidelines requiring crypto service providers to identify reportable users and file details of specified transactions by May 31, 2027. Additionally, the RBI proposed draft rules for foreign exchange management to simplify foreign investment norms.