India’s rapidly growing fintech sector is a resort to more than 2,000 startups and 20 unicorns. The market size is supposed to be valued at $50 billion in 2021 and is prospected to reach $150 billion by 2025.
In a conversation to CNBC-TV18, Deepak Jain, Co-Founder of FlexiLoans averred that he is expecting a highly developed and focused budget.
“Given this is the last budget before the elections, we expect a very development focused budget. So we are likely to see government spending a lot on infrastructure related themes. From fintech startups perspective, we see some steps being taken to bring more global capital not only in the form of equity but also in the debt form,” Jain said.
Anand Kumar Bajaj, Founder MD & CEO of PayNearby have an urge that the government should provide 150 percent weighted tax benefit over the whole expenditure not just the capital expenditure.
“Infrastructure companies were given 150 percentage weighted tax benefit for building infra in deep rural. I believe fintechs have done that same thing for reaching financial services to the masses in the deep rural. Since our costs are mostly variable in nature, the government may consider giving us 150 percent weighted tax benefit on the entire expenditure rather than just the capital expenditure.”
“Secondly there is a 18 percent GST on the banking correspondent services, we expect that the government makes it 5 percent, so that the model becomes little viable,” Bajaj adds.
