Amlan Mandal

Big milestone for Xflow! 🎉 We’ve received in-principle authorization from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Cross Border-Exports & Imports (PA-CB-E&I). In the world of payments, core licensing matters deeply, it’s not just a regulatory checkbox, it’s a marker of trust. Being authorized by the RBI means that we’re building with the right foundations, the right intent, and a long-term mindset. This moment has been a giant team effort, across legal, partnerships, risk, compliance, ops, engineering and more, and we wouldn’t have made it here without the unwavering support of our partners, advisors, and early believers. We’re excited about what this unlocks as we continue building modern cross-border payments infrastructure for Indian businesses, simple, compliant, and global by design. Let's make global money movement smarter. PS: We got covered in the news, I've included a link to the article in the comments section. #Payments #RBI #Fintech #CrossBorder #Compliance #License

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Weaver Services raises $170 million from Lightspeed, Premji Invest and Gaja Capital Housing finance platform Weaver Services has raised $170 million (around Rs 1,450 crore) in a round led by Lightspeed and Premji Invest with participation from Gaja Capital, as it looks to tap into the growing demand for the affordable housing segment with a focus on self-employed individuals. Moneycontrol was first to report about Lightspeed and Premji Invest leading Weaver Services' large-ticket fundraise, exceeding $140 million, on July 28. The investment will accelerate Weaver's asset acquisition, fund technology development, and expand reach across tier-2 and tier-3 cities where the affordable housing gap, as per the company, is the most acute. The company, which has already acquired Capital India Housing Finance for Rs 267 crore, will acquire more companies as it looks to scale its loan book and capture a larger share of the market. “We aim to make housing finance more accessible to the people of India by leveraging technology and placing customers at the centre of our focus thereby bringing in a new paradigm in the space,” said Satrajit Bhattacharya, Founder and Vice Chairman of Weaver Services.Satrajit Bhattacharya Bhattacharya is an industry veteran with three decades of experience at HDFC Ltd. As part of his relationship with the bank, its former chief Keki Mistry also has invested some money in the company, Moneycontrol had reported earlier. by Tushar Goenka https://lnkd.in/g-X4d644

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NSDL vs CDSL – Same Job, Different Game! Both power India’s stock market backend — from demat to e-KYC — but their business models? Totally different! 🔹 CDSL = Retail King Earns from lakhs of small investors via brokers & fintech apps. 🔹 NSDL = Institutional Giant Backs mutual funds, FIIs, insurers & pension funds. 📊 Scale & Reach 💰 Assets: NSDL ₹510L Cr 🆚 CDSL ₹79L Cr 👥 Accounts: CDSL 15.86 Cr 🆚 NSDL 4.05 Cr 👉 Big money sits with NSDL, but volume is with CDSL. 💵 Profits & Margins (FY25 est.): CDSL: ₹526 Cr profit on ₹1,082 Cr revenue (🟢 44% margin) NSDL: ₹343 Cr profit on ₹1,535 Cr revenue (🟡 22% margin) ✅ CDSL is leaner, more profitable per ₹ earned! 📈 Valuations & Growth 📌 EPS: CDSL ₹25.2 🆚 NSDL ₹17.1 📌 P/E: CDSL ~67x 🆚 NSDL IPO ~44x 📌 Growth (FY23–25): NSDL leads in revenue & profit CAGR 🏦 Network CDSL = 581 Members, fintech-first NSDL = 296 Members, deeper govt & institutional ties 📝 NSDL IPO Highlights * Pure OFS – no new capital * Promoters trimming stake (SEBI 15% rule) * Not for funding growth – more of a regulatory clean-up 💡 Investor Takeaway: 🔹 CDSL = Retail boom + higher profit margins 🔹 NSDL = Institutional trust + deeper integration Both are core to India’s financial infrastructure. 💼📊 no stock reco

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India's lending revolution just hit an inflection point that changes everything. According to Inc42 Media's comprehensive "State of Indian Fintech Report 2025," we're witnessing the most dramatic transformation in credit infrastructure since banking began. The numbers aren't just impressive—they're reshaping how we think about financial access entirely. ↳ Stats that demand attention • Lending tech revenue set to explode from $19B to $133B by 2030—a staggering 48% CAGR • Personal loans doubled from 73M to 146M new loans in just three years • Credit card portfolios surged 110% while new card issuance grew only 22%—existing users are driving unprecedented credit utilization • AI implementation already delivering: Bajaj Finance saved ₹150 Cr annually through GenAI bots, mid-sized banks cut credit costs by 34-36% • Consumer loans now represent 54% of India's massive $2.2T loan book, marking a fundamental shift toward individual-led credit demand ↳ Three insights reshaping the industry >>The AI-First Lending Infrastructure is Here • Traditional credit scoring is being replaced by AI models analyzing non-traditional data • Automated underwriting reducing processing times from weeks to minutes • Real-time dynamic pricing adjusting interest rates based on risk assessment and market conditions >>Consumer Behavior is Driving Unprecedented Demand • Millennials and Gen Z (50% of population) prefer seamless, mobile-first lending experiences • Rising disposable incomes and aspirational spending creating new credit categories • 23M Indian households expected to earn 20+ lakh annually by 2030, expanding lifestyle loan markets >>Digital Infrastructure Creating Unfair Advantages • India Stack components (Aadhaar, UPI, eKYC) cutting onboarding costs by 90% • Account Aggregator framework enabling fintech-friendly regulatory environment • Alternative data from ecommerce and UPI transactions unlocking credit access for new-to-credit users ↳ My perspective after 20+ years 1/ The report highlights what I've been seeing firsthand—we're not just witnessing incremental improvement, we're seeing fundamental rewiring of how credit works. 2/ The fraud challenge is intensifying: As AI democratizes lending, sophisticated fraud vectors are emerging faster than traditional detection can handle 3/ Regulatory compliance complexity: With evolving digital lending guidelines, staying compliant while innovating requires unprecedented operational sophistication 4/ Data governance is the new competitive moat: Companies with centralized data systems & robust governance frameworks will dominate those operating with fragmented silos 5/ The biggest opportunity isn't AI adoption—it's building resilient, compliant, scalable infra that can adapt to regulatory changes What specific AI use cases are you seeing drive the most measurable ROI in your lending operations? And how are you balancing innovation speed with regulatory compliance in this rapidly evolving landscape?

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If you've been having trouble paying your Zomato bills through Simpl lately, here's what happened: the RBI has ordered Simpl to stop all payment operations immediately. Unlike most major BNPL players who have NBFC licenses (either their own or partnering with one), Simpl was operating without one. Simpl positioned itself as a payment utility. A digital "khata" or dues ledger—rather than a traditional lender. RBI has simply interpreted it as if Simpl is running a payment systems with clearing and settlement functions then it should do so with a proper Certificate of Authorisation under the Payment and Settlement Systems Act. However, this time it wasn't a warning or a request to get licensed—it was an order to halt operations with immediate effect. This move reflects the RBI's broader push to eliminate regulatory grey areas in fintech. With the new Payment Aggregator Master Directions 2025, the message is clear: whether you're lending money or processing payments, proper licensing is non-negotiable. The regulatory landscape is tightening indeed, and compliance needs to be the foremost priority. #fintech #RBI

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Pine Labs IPO: $6B Ambition, $1B Raise – Can the Numbers Justify It? Pine Labs has filed its Draft Red Herring Prospectus (DRHP) for one of India’s largest fintech IPOs, aiming to raise $1 billion at a $6 billion valuation. The company plans to use the proceeds for debt repayment, subsidiary investments, technology development (cloud, AI/ML), device procurement for market expansion, strategic acquisitions, and general corporate purposes. The Company & Its Evolution Founded in 1998 by three IIT graduates in a Noida garage, Pine Labs started as a payment terminal provider. Over the years, it has transformed into a full-stack merchant payments platform operating in India, Southeast Asia, and the UAE. Key milestones: 2015: EMI & affordability solutions launched 2018: Merchant analytics platform introduced 2019: Southeast Asia expansion Acquisitions: Setu ($70–75M), QwikCilver, Saluto Wellness Business Model Pine Labs earns from: Transaction fees (avg. 1.5% merchant service fees) Subscription revenue from devices Interest income from BNPL & EMI products Processing fees from card and digital payments FY24 scale: 570,000+ merchants, $30B annual processing, 3.44B transactions. The Financial Reality Revenue CAGR: 12.4% (FY19–FY24) despite COVID FY24 revenue: ₹1,384 Cr (+4.2% YoY) Loss-making every year: ₹369 Cr cumulative losses in 5 years FY24 net margin: -13.5% (worst in history) Heavy reliance on external financing: ₹5,044 Cr raised over 5 years Asset turnover decline: 0.25x → 0.17x (The ratio compares the rupee amount of revenues to the company's total assets to measure the efficiency of the company's operations) Valuation Analysis Ask: $6B (~₹49,800 Cr) = 30.7x FY24 revenue Industry norm: 2–6x revenue multiples For perspective, Paytm—10x Pine Labs’ revenue, profitable at the EBITDA level, and with 96M consumer users—trades at just 3.3x revenue in public markets. The contrast raises questions about whether Pine Labs’ premium is warranted. Key Risks from DRHP Customer concentration: 31–35% revenue from top 10 clients Auditor-flagged IT control weaknesses Intense competition (254 players in India alone) Pricing pressure and regulatory compliance challenges No clear roadmap to profitability Unanswered Questions When will Pine Labs achieve sustainable profitability? Can it reduce dependence on top customers? Can it scale internationally without heavy capex and further dilution? Will emerging payment technologies (CBDCs, new rails) disrupt its core model? Pine Labs has undeniable scale, strong partnerships, and a diversified payments ecosystem. But at $6B, the valuation demands either a rapid path to profitability or outsized revenue growth—neither of which is certain today. The IPO will test whether public markets still reward scale over sustainable earnings in India’s fintech sector. Side-note - It is available in private markets at ~4.5 Bn valuation.

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WhatsLoan-046 Bharat Series Sept 2025 BNPL as Convenience Commerce 1. Why RBI is Restricting BNPL RBI’s stance is shaped by risk, regulation, and consumer protection: • Unsecured Lending in Disguise: BNPL looks like a simple checkout option, but in reality it extends credit without the safeguards of a loan (no KYC, no credit bureau reporting in some cases). • Weak Oversight: Payment aggregators were running quasi-lending operations without NBFC licenses or RBI approval. • Systemic Risk: If left unchecked, millions of micro-loans can build up hidden credit exposure outside regulated lending channels. • Consumer Protection: Customers may not realize that delayed payments incur penalties, or that defaults impact their credit. Hence, RBI treats BNPL as lending rather than just a “convenience commerce and payment option.” 2. Why BNPL Can Feel Like “Convenience Commerce” (30–90 Days) • For short-term deferrals (15–90 days, single payment), BNPL resembles a checkout convenience, like “pay at delivery” or a free grace period. • These are usually zero-cost to customers, funded by merchant discount rates (MDR) or fees. • From a consumer’s perspective, it feels like commerce facilitation, not debt. But the catch: even this short-term exposure involves the BNPL company advancing money to merchants and carrying repayment risk, which is credit in regulatory terms. 3. When BNPL Becomes Like Credit Cards (Up to 12 Months) • When repayment is structured into EMIs (3–12 months), BNPL mirrors credit card EMI products. • RBI expects: • Credit bureau reporting • Interest/charges disclosure • Regulatory capital and provisioning (like banks/NBFCs) • This aligns BNPL with regulated revolving/term credit products. 4. Beyond 12 Months → Treated as Unsecured Lending • Anything beyond 12 months clearly ceases to be “short-term convenience.” • It becomes a personal loan in EMI disguise, needing: • NBFC license or partnership with a regulated lender • Standard loan agreements • Fair lending practices (APR disclosure, collections framework) 5. The Regulatory Logic • 0–90 days → Convenience commerce (but RBI still cautious, since money is advanced). • 3–12 months → Treated like credit cards/consumer durable loans, with EMI structure. • 12+ months → Pure unsecured lending, only permissible through NBFC/bank partnerships. In effect, RBI is saying: If it looks like credit, designed like credit, and carries repayment risk, it must be regulated as credit.

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