The actions of Fosun and Alibaba could spark a trend, but it is unlikely to hurt as their reasons for selling shares have little to do with India.
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They were the app’s flagship feature until the RBI shut down new deposits into Paytm wallets a year and a half ago.
The battle between four of India’s major fintechs and the payments orchestration leader is being fought on the issues of interoperability and fair competition. Ultimately, though, commercial factors will trump all else.
Fintech startups have only been able to corner a small part of the value in gold-linked financial products like gold loans and digital gold even as gold prices have shot up. Regulatory changes may pose a further challenge.