Fintech startups going public will transform India’s payment ecosystem for good

Over the past decade, India’s fintech story has defied expectations. From being largely cash-driven and underbanked, we've built one of the world’s most advanced payment ecosystems and we’ve done it at remarkable scale.

The UPI stack is now studied globally, with several countries exploring similar models. What makes this even more impressive is that much of this progress has been fuelled by a combination of digital public infrastructure, mobile-first innovation and deep collaboration with merchant acquirers. Everyday payments have become invisible, something that was unthinkable a few years ago.

But as the ecosystem matures, it’s time for a shift. Much of this growth has been underwritten by deeptech, innovation and venture capital, chasing speed and scale. The rails are in place, now we need to build resilience. And in this next chapter, I believe public markets will play a pivotal role in shaping the future of Indian fintech.

Why IPOs matter now

For many fintech startups, going public is often viewed as a financial milestone, a marker of success. But it’s far more than that.

Listing on public markets forces a fundamental change in how a company operates. It opens access to larger, more patient pools of capital, allowing startups to think beyond quick wins and invest in long-term infrastructure. It also demands greater transparency, governance, and accountability. All essential qualities as fintechs become integral parts of the financial system.

In my view, this shift will move the industry from chasing hypergrowth to building sustainable value. It will nudge companies to move beyond vanity metrics and focus on profitability, customer retention, and trust.

The impact on innovation and inclusion

With the public listing comes pressure to perform, transparently. That pressure can be powerful. It forces fintechs to focus on real revenue, unit economics, and customer retention over vanity metrics. And in doing so, it creates the conditions for real innovation.

There’s also a powerful knock-on effect of accessing public capital. It enables fintechs to double down on areas that truly move the needle:

● Developing smarter, AI-driven risk and credit models that can responsibly grow the ecosystem

● Strengthening payments and lending infrastructure to make transactions faster, safer, and more reliable

● Designing digital-first products that cater to segments previously overlooked or underserved

● Creating new platforms across wealth, insurance, credit, and embedded finance, expanding what financial inclusion looks like

These aren’t just product iterations. They are enablers of meaningful inclusion, giving millions of SMEs, consumers and informal businesses better tools to grow and thrive.

Trust, governance and global perception

Becoming a public company also elevates trust. Listed companies must adhere to higher regulatory standards and disclose much more than their private counterparts. In an industry where trust is as valuable as technology, this matters enormously.

There is also a signalling effect. When more Indian fintechs go public and demonstrate strong governance and performance, it sends a clear message globally: India is home to mature, credible and investable digital financial institutions. I believe this will attract more capital, talent, and global partnerships, further strengthening the ecosystem.

IPOs are a starting line, not the finish line

Of course, going public doesn’t automatically fix everything. It won’t guarantee inclusion, innovation or perfect governance. But it creates the conditions where these become necessary and non-negotiable.

As more fintechs step into public markets, I expect we’ll see a natural evolution:

• The era of cash-burning hypergrowth giving way to capital-efficient scaling.
• The era of headline-grabbing valuations giving way to businesses built for durability.
• The era of hype giving way to trust.

India’s fintech journey is far from over. In fact, the most exciting chapters may still be ahead of us and they’ll likely be written on the foundations of stronger, more accountable companies operating in the public eye.

(Raman Khanduja, CEO and Co-founder of Mintoak, a fintech startup)