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Global Fintech Fest 2023: Insights from Day 1 - Persistent Funding Challenges

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Global Fintech Fest 2023: Insights from Day 1 - Persistent Funding Challenges
06 Sep 2023
4 min read

News Synopsis

Global Fintech Fest 2023: A Grand Gathering

The Global Fintech Fest, a three-day extravaganza, has returned, and this time it's bigger than ever before. Mumbai's Jio World Convention Centre has become the epicenter for discussions, debates, and networking among India's leading fintech startups.

This event not only serves as a platform for knowledge exchange but also as fertile ground for forging partnerships and, occasionally, sparking acquisition talks.

An Expanded Venue for a Bigger Event

To accommodate the increasing number of participants, the organizers have secured an additional floor at the already expansive venue. However, attendees may find themselves clocking in extra steps due to the multitude of intriguing topics discussed each day.

Day 1 Highlights: Sustainability and Inclusion

Day 1 of the event commenced with an address by Finance Minister Nirmala Sitharaman. Her focus was on constructing a responsible financial system with sustainability and inclusion as guiding principles. Interestingly, she remarked on the apparent gender disparity among the questioners in the audience.

Funding Winter - Myth or Reality?

Recent headlines have been dominated by concerns over a funding winter in the startup ecosystem, particularly in fintech. While the enthusiasm and vibrancy at the fintech fest may suggest otherwise, there's more beneath the surface.

According to a fintech founder, the reality depends on the type of investor you engage with.

  • Valley vs. Lala Investors: "Valley" investors, inspired by Silicon Valley's strategy, prioritize top-line growth. In contrast, "lala" investors, representing the shrewd Indian investment community, emphasize bottom-line profitability. Interestingly, even valley investors are leaning towards a more cautious approach, aligning with the lala mentality.

The Longevity of the Funding Winter

The same fintech founder mentioned above believes that the funding winter is here to stay for at least another year. Cash-strapped fintech founders will need to secure funding without significantly impacting their valuations.

The Challenge of Scalable Business Models

Investors face another dilemma in identifying truly scalable business models. While loose monetary policy and capital-rich VC funds have poured into the Indian fintech scene, achieving customer loyalty has proven challenging.

The Battle for Customer Loyalty

Customer loyalty in India's fintech landscape is elusive, despite initial user acquisition driven by attractive offers like cashbacks and coupons. Most users tend to revert to familiar apps, even if they initially experiment with copycat products.

B2B Fintech Realities

Business-to-business (B2B) fintechs, often deemed to have more stable models, face their own challenges. Despite India's vast merchant base, digital payments adoption remains limited among merchants, creating revenue uncertainties.

A Look into the Future

The lack of scalable business models and the competitive landscape are driving a wave of consolidation in Indian fintech. This trend is expected to result in acquisitions and shutdowns in the near future.


Day 1 of the Global Fintech Fest 2023 provided a deep dive into the challenges and opportunities in the fintech sector. From funding uncertainties to the quest for customer loyalty and scalable models, the event serves as a valuable forum for stakeholders to navigate the evolving landscape of financial technology.