RBI’s Fintech Reset, Palmolive Seeks Support, and ixigo Partners With Uber

For several years, Indian lending fintechs had a very attractive arrangement. The startup owned the app, customer relationship, underwriting data and collections, while a bank or NBFC supplied the regulated balance sheet. In some cases, fintechs even guaranteed much of the credit risk through FLDG arrangements. They could earn lending-like economics while presenting themselves to investors as asset-light technology companies.

The RBI has spent the past four years breaking that model apart.

The 2022 rules on digital lending required money to move directly between the regulated lender and borrower rather than through fintech-controlled pool accounts. Credit-funded prepaid cards were restricted, hitting products from companies such as Slice and Uni. In 2023, default-loss guarantees were capped at 5%, making it much harder for an unregulated technology company to effectively underwrite a loan book sitting somewhere else. Data collection and storage rules have also moved control back towards regulated lenders.

The latest co-lending rules make the direction even clearer. From January 2026, each regulated lender in a co-lending arrangement must retain at least 10% of every loan on its own books. Asset classification is also aligned between the lenders. Someone now has to visibly own the risk.

This changes the economics of fintech.

An NBFC generally needs a 15% capital adequacy ratio. On a ₹1,000 crore unsecured loan book carrying a 125% risk weight, that can translate into roughly ₹187.5 crore of regulatory capital. That money cannot simultaneously fund advertising, engineers and expansion.

Slice shows where this can lead. After the RBI restrictions disrupted its original card model, it eventually merged with North East Small Finance Bank. It now owns the regulated institution rather than sitting in front of one. In FY26, Slice Small Finance Bank reported a ₹48.4 crore profit. Jupiter took another route by obtaining its own NBFC licence.

The RBI has also shown that this is not simply an attempt to make credit expensive. In 2025 it reversed the extra risk weight on bank lending to NBFCs and reduced the treatment for microfinance, even while higher risk weights remained on much unsecured consumer credit. The regulator appears less concerned with fintech itself than with credit risk becoming separated from regulatory responsibility.

The US offers a useful warning. When banking middleware provider Synapse collapsed in 2024, customers lost access to funds and a court-appointed trustee identified an estimated $85 million shortfall between partner-bank balances and what depositors were owed. India’s insistence on direct fund flows and clearer data custody looks less excessive when seen against that failure.

The result is that Indian fintech is splitting into two businesses. One group will become real financial institutions, owning licences, capital, underwriting and bad loans. The other will sell software and infrastructure to those institutions through Account Aggregator, UPI, OCEN and similar rails.

The difficult position is the middle one: owning the customer and earning from credit without owning enough of the balance sheet or regulatory responsibility.

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.

“Ya Ali Madad Wali”: Colgate Turns To Bombay Shaving Company To Fix Palmolive’s D2C Play

Palmolive is bringing in Bombay Shaving Company to give its D2C and ecommerce game a digital boost.

Bombay Shaving will handle ads and customer relationships, while Colgate keeps product and supply chain control.

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“Karz Utar Gaya”: PharmEasy Claims To Be Debt Free

API Holdings, parent of PharmEasy, Thyrocare and Docon, claims it has become debt-free after repaying Rs 1,050 Cr in outstanding debt.

The repayment was funded through internal accruals and proceeds from selling part of its Thyrocare stake. Docon Technologies sold a 9.90% stake in Thyrocare while retaining 51.02% control.

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“AI Ki Shakti Sab Par Bhaari”: Razorpay Launches AI Foundation Model

Razorpay has launched Vulcan, an AI foundation model designed to make digital payments faster and safer.

Built with NVIDIA and AWS, it scores payment routes in real time and flags fraud patterns across merchants.

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“Hum Saath Saath Hai”: ixigo Partners With Uber To Enable Train Ticket Booking

ixigo is teaming up with Uber to bring train ticket booking straight to the cab app. Users can now book tickets, check PNR status and arrange first- and last-mile rides in one place.

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“It’s About Drive”: Milkvilla Builds 12-Hour Supply Chain For Fresh Raw Milk

Bengaluru-based dairytech startup Milkvilla is building a hyperlocal supply chain to deliver fresh raw milk from farmers to consumers within 12 hours.

The startup collects milk directly from farmers, turbo-cools it to 4°C, runs quality checks, and delivers through refrigerated vans.

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“Aaiye Aapka Intezaar Tha”: Superhealth Appoints Dunzo Cofounder Dalvir Singh Suri

Superhealth has appointed former Dunzo cofounder Dalvir Singh Suri as head of operations.

Superhealth plans to expand from its flagship Bengaluru hospital to 100 multispecialty hospitals over the next five to seven years.

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“Modi Hai Toh Mumkin Hai”: Govt Clears 31 More Electronics Manufacturing Projects

The government has cleared 31 more electronics manufacturing projects worth ₹7,900 Cr under the ECMS.

That takes total approved applications to 106, with the scheme already beating its investment and production targets. Cumulative production value has now crossed ₹82,243 Cr.

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“Mutual Fund Pe Loan Milega”: DSP Finance Acquires Volt Money

DSP Finance, the NBFC arm of DSP Group, has acquired Salter Technologies, which operates digital lending platform Volt Money.

Volt Money provides loans against financial assets, including loans against mutual funds, with disbursal in five minutes subject to approvals.

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1. LISSUN has raised ₹48 Cr in a Series A led by Colossa Ventures to expand its network of child development centres.

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2. Rezolv has raised $12.5 Mn in a Series A led by Norwest, with Vertex Ventures Southeast Asia and India and 3one4 Capital also participating.

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3. NeoGeo has raised $20 Mn in a Series A led by Neev II Fund and Aavishkaar Capital to scale its geospatial technology platform.

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4. Wispr Flow has raised $280 Mn in a Series B led by Menlo Ventures, taking the San Francisco-based voice AI startup’s valuation to $2 Bn.

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