Why VCs are hitting reset on Indian fintech

After nearly a decade of unparalleled growth, the country’s fintech businesses are finding it hard to justify their hefty valuations and build profitable businesses.

Note: This is the sixth story in a series where The Morning Context is doing deep dives into sectors where the Indian venture capital hypothesis has failed to live up to the hype. 

Over the past two decades, VC firms of all varieties have sold the India story to a whole host of institutional investors across the world. Several sectors have been packaged together, from e-commerce and education to real-money gaming, classifieds and short video, to create this powerful idea that a market of a billion Indians is ripe for consumption, technology disruption and wealth creation. Where pouring VC funds …


Ashwin Manikandan

Ashwin covered fintech and banking at The Morning Context. Previously, he was at The Economic Times, where he worked across the finance, tech and startup verticals, breaking stories related to India’s banking system, startups in the new economy, digital payments, insurance and cryptocurrencies.