Fintech’s Friction Era, Swiggy Instamart Receives Notices, and Ola Electric’s Woes

For most of the last decade, Indian fintech sold speed as progress.

A loan approved in minutes was better than a loan approved in days. A payment completed in seconds was better than a bank transfer that took time. A prepaid card loaded with credit looked smarter than a formal loan. A co-branded card issued through a fintech app looked more modern than a bank branch process.

That model worked because venture capital wanted growth, banks wanted digital distribution, and regulators allowed room for experimentation.

That room is now closing.

RBI’s actions follow a clear pattern. The central bank is looking at the fintech stack investors once loved and asking one question: who owns the risk when speed fails?

Fintechs built the customer interface. Banks and NBFCs often carried the regulated balance sheet. Users saw instant credit and smooth onboarding. Regulators saw weak KYC, outsourced underwriting, unclear data control, risky borrowers and first-loss guarantees that made risk look smaller than it was.

The stress is now visible. Small-ticket personal loan defaults originated by fintechs have risen to 6.4% as of March 2026, from a little over 4% in March 2024. Fintechs now control more than half of the sub-₹50,000 personal loan market. Around 70% of their books are unsecured.

Payments show the same logic. RBI’s proposed one-hour cooling-off period for certain UPI and IMPS transfers above ₹10,000 is not only about slowing payments. Digital payment fraud losses have reportedly risen from about ₹551 crore in 2021 to nearly ₹22,931 crore in 2025. Transactions above ₹10,000 account for 98.5% of fraud value. From RBI’s view, instant settlement is also a fraud accelerator.

The wider clampdown fits the same story. In 2022, RBI blocked non-bank prepaid instruments from being loaded through credit lines, hitting BNPL and card-challenger models. FLDG arrangements are now capped at 5%. Digital lending rules have restricted intrusive phone-data access. Co-branded cards are under tighter data-sharing scrutiny. OneCard’s issuance freeze showed that RBI is no longer satisfied with saying the fintech is only the front end.

Paytm Payments Bank became the loudest warning. RBI cancelled the licence, making it clear that scale, brand and public listing cannot compensate for repeated compliance weakness.

Funding has adjusted. Fintech funding may look stable in some datasets, but deal count has fallen sharply. Seed funding is down, first-time funded fintechs are fewer, and capital is moving to later-stage companies with cleaner books and stronger compliance.

The old valuation grammar is gone. DAUs, GMV, disbursals and transaction velocity are not enough. Investors will now ask for vintage delinquency, collection quality, partner-bank durability, capital adequacy, data architecture and regulatory history.

The winners will be banks, large fintechs that can absorb compliance costs, and companies that treated governance as infrastructure. The losers will be fintechs built around arbitrage: thin credit structures, aggressive alternate data and cheap-capital-led acquisition.

Some useful innovation will slow. MSMEs and thin-file borrowers may face harder access. But the industry cannot avoid the truth: a lot of fintech innovation was regulatory arbitrage with better design.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Bhaari Blunder Ho Gayil Ba”: Swiggy Instamart Receives 9 FSSAI Notices Over Alleged Sale Of Expired Products

Swiggy Instamart has received nine notices from FSSAI after consumers complained about allegedly expired and unsafe food products being delivered.

The action comes just a day after another FSSAI order involving Swiggy's food delivery platform Toing. The complaints have once again put the spotlight on quality checks in the quick commerce space.

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“Maamla Legal Hai”: Ola Electric Faces Third Insolvency Petition, Gets NCLT Notice

Ola Electric has received an NCLT notice after a third supplier filed an insolvency petition over alleged unpaid dues of ₹9.57 Cr.

The fresh plea adds to the EV maker's growing legal troubles with multiple vendors. It also comes at a time when Ola Electric is trying to recover from falling sales and mounting losses.

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“Baad Mein Aana Haan”: GoKwik Lays Off Around 120 Employees Amid AI Push

GoKwik has laid off around 120 employees as part of a restructuring drive tied to its AI push. Teams across the company were affected, with customer onboarding, implementation, and tech seeing the biggest cuts.

The move reflects the startup's growing focus on automating operations through AI.

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“Hum Saath Saath Hai”: Dil Foods In Talks To Acquire Cloud Kitchen Pioneer FreshMenu

Dil Foods is in talks to acquire cloud kitchen pioneer FreshMenu in what is reportedly a distress sale. FreshMenu, once a leader in the segment, is facing a cash crunch despite recovering after the pandemic.

The companies have already entered a brand licensing and operator agreement while acquisition talks continue.

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“Sapne Dekhe Bade Bade”: CarDekho To File DRHP For ₹3,500 Cr IPO This Quarter

CarDekho is set to file its DRHP this quarter for a ₹3,500 Cr IPO. The public issue will include a mix of fresh shares and an offer for sale, with leading investment banks managing the process.

InsuranceDekho will remain separate and pursue its own listing later.

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“Achha Toh Hum Chalte Hai”: Zetwerk Cofounder Rahul Sharma Steps Into Non Executive Role To Launch AI Venture

Zetwerk cofounder Rahul Sharma is moving into a non-executive role as he prepares to launch a new AI venture.

The startup is expected to receive backing from Zetwerk while also raising independent funding. Sharma is already in the market to secure capital for the new venture.

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1. Fundamentum has launched a new ₹2,200 Cr fund to back Series B startups across consumer tech, fintech and AI. As Nandan Nilekani steps down as a GP, he will instead become the fund's largest-ever anchor investor.

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2. ideaForge has raised ₹500 Cr through a qualified institutional placement by allotting nearly 62.9 lakh shares to eligible investors. The shares were issued at ₹795 each, a 5% discount to the announced floor price.

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3. Lab-grown diamond jewellery brand Jewelbox is in talks to raise ₹50 Cr in a fresh funding round led by Physis Capital. Existing investor V3 Ventures is also expected to participate as demand for lab-grown diamonds continues to rise.

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4. Former Livspace executives Saurabh Jain and Lalit Mittal are in talks to raise $15 Mn for their new startup, Gravity. The venture aims to simplify material procurement and supply chains in India's $20 Bn home interiors market.

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5. Lab-grown diamond brand Aukera has raised ₹90 Cr in debt funding led by Alteria Capital to fuel its next phase of growth. The startup plans to expand its store network while investing in product innovation and its omnichannel business.

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6. Pernia’s Pop Up Shop has raised ₹162 Cr in debt after securing SEBI's nod for its IPO. The funding came from institutional and angel investors as the fashion retailer gears up for its public market debut.

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7. Digital lending platform Indifi is set to raise over $8 Mn in a funding round led by ICICI Venture with participation from existing investors. The fresh capital marks the startup's first fundraise in nearly three years.

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