Fintech Startups To Watch: Startups That Caught Our Eye In September
It was a busy month for India’s fintech ecosystem. On the public markets, SEBI issued final observations on the proposed…
September proved to be a dynamic month for India’s fintech landscape. SEBI issued final observations on the proposed IPO of Social Worth Technologies, the parent firm of fintech startup Fibe, while Moneyview successfully made its stock market debut as a digital lending unicorn. Zerodha was granted the regulator's approval to function as a merchant banker, and Upstox commenced US stock investing on its platform.
Two key themes emerged during this period: the increasing integration of AI in payments and evolving fintech economics.
In September, the Global Fintech Fest 2026 (GFF) in Mumbai served as a prime showcase for AI-centric fintech products. BharatPe introduced an AI-powered agentic platform for merchants, Pine Labs unveiled an agent-led commerce feature on the L&T Finance's PLANET app, and various banks and NBFCs collaborated with new-age startups to incorporate AI capabilities into their platforms.
Meanwhile, NPCI, the UPI operator, unveiled enterprise-focused AI tools, although the anticipated launch of a framework for agentic payments on UPI failed to materialize.
The rapid advancement of AI has sparked concerns about potential risks to financial system security and stability. At GFF, Prime Minister Narendra Modi and RBI Governor Sanjay Malhotra emphasized the necessity for fintech companies to bolster consumer trust. NPCI’s MD and CEO, Dilip Asbe, highlighted the need for banks and payments companies to invest in AI to counter cyber threats, and explained the rationale behind introducing merchant discount rate (MDR) charges on UPI.
This development prompted a debate over who ultimately should bear the cost and whether, or to what extent, these charges could be passed on to consumers.
Another significant theme in September was fintech economics. After months of speculation, the new UPI MDR regime was officially notified, effective October 15. Under the new framework, UPI payments exceeding ₹2,000 will incur a 0.4% fee, with exemptions for smaller merchants, critical sectors, and peer-to-peer (P2P) transfers. This change has ignited a discussion on who will ultimately bear the cost and whether, or to what degree, it may be passed on to consumers.
The insurance sector is also experiencing a transformative shift, with the Insurance Regulatory and Development Authority of India (IRDAI) proposing to reinstate product- and channel-specific commission caps for insurance distributors. This move could directly impact commission-dependent listed insurtech companies like PB Fintech and Turtlemint.
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