Indian fintech companies are shifting their strategies from rapid volume growth to focusing on profitability and sustainability amid increasing regulatory pressures. Key players like MobiKwik, Paytm, PB Fintech, and Infibeam Avenues are adapting by emphasizing secured lending, improving payment margins, and optimizing operations. This strategic pivot marks a significant change in India’s digital finance sector, aiming for long-term value rather than quick expansion.
India’s fintech sector, once driven by aggressive volume growth and unsecured lending, is now prioritizing profitability and sustainable business models. As regulatory oversight tightens, companies headquartered in major financial hubs such as Gurugram, Noida, Gurgaon, and Ahmedabad are recalibrating their strategies to focus on margin improvement and risk management.
MobiKwik, a Gurugram-based fintech firm known for its payments platform and credit products, has reduced its exposure to the Buy Now, Pay Later (BNPL) segment. The company’s BNPL disbursals declined by 41% in fiscal 2025, as it shifted towards longer-tenure loans and enhanced focus on its payments segment, where it tripled its transaction volume to Rs 1.15 lakh crore.
Paytm, headquartered in Noida, intentionally slowed down personal loan disbursals by 19% in Q4 FY25, redirecting efforts towards merchant lending, which grew by 13% sequentially. The company is also navigating regulatory uncertainties around Merchant Discount Rates (MDR) on UPI transactions, which, if allowed, could provide new revenue streams.
PB Fintech, the operator of Paisabazaar based in Gurgaon, has increased its secured loan portfolio, growing loan disbursals by 38% in FY25, with a strong emphasis on home loans and loans against property.
Infibeam Avenues, an Ahmedabad-based payments infrastructure provider, expanded its processing volume by 27%, adding over 420,000 merchants in FY25. The company improved its take rate, boosting margins while expanding its merchant technology offerings in Tier II and III cities and overseas markets.
This industry-wide shift signals a transition from prioritizing rapid user acquisition and unsecured credit growth to adopting more stable and scalable financial models. The emphasis on secured lending, margin enhancement in payments, and operational efficiency reflects the fintech sector’s adaptation to a maturing market and evolving regulatory landscape in India.
