Elevation Capital says fintech companies building tailored products are finding takers

economictimes.indiatimes.com:

regulatory challenges imposing higher governance costs, procedural delays and hurdles in establishing partnerships with banks for fintech firms, such actions serve as a runway for them to build a scalable platform in the long run, said senior partners at early-stage venture capital investor firm Elevation Capital.

“I think getting a regulatory clarity might make your task tougher because it adds governance and governance cost and it may make your task longer. But I think it provides a nice runway for you to scale and become a scalable platform,” Mridul Arora, partner at Elevation Capital, said.

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His comment comes at a time when fintech startups are grappling with recent regulatory actions by the Reserve Bank of India, including the crackdown on Paytm Payments Bank and the central bank's directive to Visa and Mastercard to restrict card-based commercial payments made by companies.

Vaas Bhaskar, a principal at Elevation Capital, said, “While I think there might have been short term pains here and there, overall, if you see most of the directions, it's becoming more clear what a regulated entity can do and what a fintech can do.”

Further, discussing emerging sectors within the current landscape, Bhaskar said fintech startups