Inside India’s Fintech Shift: Expert VC Insights You Need to Know

Ashish: 2024 may we saw 33% drop the fintex base funding if that wave wouldn't have come.

I think we would have had a few more companies which would have gone down or which could have been forced to go public that era was a era of easy money learning curves can be very steep very costly you cannot uh take your chances on that so the founders’ ability to understand the market that he or she is operating is very crucial GDP grows at 6% a financial services will grow at 10 to 15% % and fintex will grow at 2x of that also say the cab drivers in Bombay and the tailallas and everybody has a QR code and they're taking your money on one hand government is trying to bring more and more money into circulation and mainstream they will not upset that tech far reaching benefits disadvantages and we have to brace up for.

Vivek: Hello everyone, and welcome to another episode of Bazaar and Beyond, where we take a deep dive into subjects ranging from finance and investments to innovation and policy,so you can make smarter decisions with your money. I’m your host, Vivek.
Today’s guest is someone with years of experience investing in India’s fintech space,Ashish Fafadia, Managing Partner at Blume Ventures, where he oversees fintech and growth portfolios.
Ashish, welcome to Bazaar and Beyond. Thank you for joining us.

Ashish: Thank you for having me, Vivek.

Let’s start with your journey. How did you become a VC?

Vivek: Tell us how you got into venture capital.

Ashish: In college, all my projects had some entrepreneurial angle. I entered the workforce in 1997, around the Y2K period,not the easiest time due to market disruptions. After earning a dual qualification, I joined SBI, where things were still very manual. Over time, I witnessed core banking evolve into mobile banking,today, we carry branches in our pockets.
I had short stints at two banks but realized traditional timeframes didn't suit me. In banking, short-term meant post-lunch! Investing felt more aligned with my thinking. Later, during my time at the Times Group, I met Karthik, and that’s how I joined Blume Ventures in 2012.

In 2024, we saw a 33% drop in fintech funding. What’s your take?

Vivek: 2024 saw a 33% drop in fintech base funding. What did that mean for the industry?

Ashish: Yes, especially in digital lending, funding dropped by about 60%. But I don’t see it as a funding “winter”,more like a healthy reset. There was too much easy money earlier.
If the 2022 global wave hadn’t hit (think Russia-Ukraine conflict), we might’ve seen more companies fail or rush to IPOs prematurely.
A 30% drop from the 2021–2022 peak isn’t a crisis. It’s just a correction. Lending companies thrived charging 30–40% interest rates, but that wasn’t sustainable. This is a return to balance.

 What’s the future of fintech in India?

Vivek: How do you see fintech evolving from here?

Ashish: We’re now moving beyond just lending and payments. Wealthtech is expanding from stock trading into full-stack advisory.
I’m very bullish on tech-first advisory platforms,ones that combine equity, debt, long-term planning, and more. They’ll scale because tech makes it accessible and efficient. AI will power smarter, early-stage advisory services using data.
Distribution will still matter, but the real moat will be AI-led, personalized, advisory-led fintech.

Will Indian customers pay for financial advice?

Vivek: Do you think Indian users are ready to pay for good advice?

Ashish: Yes, especially if it’s priced well. People might not want to pay ₹10,000,but ₹1,500 for managing a ₹10 lakh portfolio? That’s reasonable.
Look at services like Netflix,if the value is clear, people will pay. Financial planning is moving toward a more holistic approach: FDs, long-term goals, and yes, even a bit of trading.

Is a multifunctional platform the future?

Vivek: How important is a multifunctional platform in today’s landscape?

Ashish: It depends. For middle and lower-middle income segments, an all-in-one platform works well. But for affluent users, specialized apps might be better.
Fintechs must understand whom they serve and whether their offering should be broad-based or niche.

How should retail investors assess fintech opportunities?

Vivek: As a public market investor, how do I evaluate fintech companies?

Ashish: Look for founders who deeply understand both the market and regulatory landscape. Fintech will grow 2x faster than GDP, so there’s massive opportunity.
Key things to look for:

• Solid tech stack
• Clear market strategy
• Good go-to-market execution
• Regulatory readiness
  Companies that tick these boxes are better positioned to scale and attract funding.

Can you share examples of impactful fintech startups?

Vivek: Which fintech companies stand out to you?

Ashish: Slice is a standout,it became one of the top credit card issuers, rivaling HDFC, ICICI, and SBI. It's now a full-fledged bank.
Another example is Turtlement, which has over 1 lakh B2B agents.
Slice, Serify, Turtlement,these are all building long-term businesses and could go public in the next 3–4 years.

What do you look for in an investible fintech company?

Vivek: What makes a fintech company fundable?

Ashish: Four key criteria:

1. Founder background
2. Regulatory and market understanding
3. A big enough market opportunity
4. Strong business fundamentals and ability to raise more funds

Plus, is the tech layer strong? Is the GTM strategy solid? In B2B, BD strength matters. In B2C, distribution is everything.

What’s your outlook on UPI and payment charges?

Vivek:
How do you see UPI evolving, especially regarding competition and potential charges?

Ashish: UPI has reached grassroots,auto drivers, tailors, everyone’s using it. The government won’t disrupt this with high charges.
If anything, we’ll see nuanced transaction slabs. Embedded financial services,like payments within insurance or EMI-based products,will rise. But UPI will stay cheap and accessible.

Final thoughts

Vivek: Thank you so much for your time, Ashish. This was packed with insights.

Ashish: Thanks, Vivek. Always a pleasure to discuss where fintech is headed.

Vivek: Thanks for tuning in to Bazaar and Beyond. Stay safe, stay informed, and as always,invest wisely.