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Happy Thursday! Lenders are turning to fintech startups for smarter debt collection solutions as unsecured loan stress rises. This and more in today’s ETtech Morning Dispatch.Also in the letter:■ Brakes on bike taxis■ Infy-Cognizant saga■ Uber targets teensLenders say AI to fintech startups for debt collection 119924180With stress mounting on unsecured consumer loans, lenders are increasingly turning to fintech startups for more effective debt collection solutions.
Driving the news: Companies such as Yubi-owned Spocto X, Perfios-owned CreditNirvana, Rezolv, and Credgenics are using advanced AI-driven models to analyse vast datasets, predict borrower behaviour, and preempt defaults by closely monitoring transaction activity.New opportunity: These AI-powered solutions are helping lenders reduce collection costs and streamline recovery efforts, creating opportunities for startups to disrupt the traditional debt collection industry. 119924497Fund inflow: Venture capital firms have poured over $880 million in debt collection and resolution startups over the past three years, according to intelligence platform Tracxn.
Recent deals in the space include:Perfios acquired CreditNirvana, a collections and debt management platform.Rezolv, a debt resolution platform co-founded by Kissht’s founders, secured $3.5 million in seed funding from 3one4 Capital.
CredResolve, a collections platform, raised $1.1 million in seed funding led by Unleash Capital Partners.Yes, but: While AI enhances analytics and speeds up decision-making, industry executives caution that it is not a quick fix.
The sector is still in the early stages of technological transformation, and the long-term impact of AI-driven debt collections remains to be seen.Flipkart Internet receives Rs 3,249 crore infusion from Singapore parent 119924225Kalyan Krishnamurthy, CEO, Flipkart Flipkart Internet, the marketplace arm of Walmart-owned Flipkart, has raised Rs 3,248.9 crore from its Singapore-based parent, according to regulatory filings.
Details: Flipkart’s board issued 470,772 equity shares at Rs 69,013.7 per share via a rights issue, raising funds from Flipkart Marketplace Private Limited in Singapore.This follows a Rs 1,421 crore infusion by its Singapore holding company in two tranches in March and April 2024.
In January 2024, related Singapore-based entities injected Rs 924 crore into Flipkart Internet.Recap:In May 2024, we reported that Flipkart raised $1 billion, including a $350 million investment from Google, at a valuation of approximately $35-36 billion.In December 2024, we reported that Flipkart is preparing for an initial public offering (IPO) in India within 12-15 months.
Digital storytelling startup Pratilipi raises $20 million; valuation slashed more than 60% 119924291Ranjeet Pratap Singh, CEO, PratilipiDigital storytelling platform Pratilipi has secured $20 million in a funding round led by Jungle Ventures after struggling to raise capital for its working capital needs last year. However, the deal was closed at a post-funding valuation of $100 million—a more than 60% decline from its previous valuation, cofounder and CEO Ranjeet Pratap Singh told ET.US-focused financial superapp Abound raises $14 million in funding: Abound, a financial superapp for Indians living in the United States, has raised $14 million in a funding round led by Near Foundation, with participation from Circle Ventures, Times Internet*, and others.
*Disclaimer: ETTech is part of Times Internet Limited (TIL), a subsidiary of BCCL, which publishes The Economic Times.Karnataka HC bans Ola, Uber, Rapido bike taxi services till rules framed 119924318The Karnataka High Court has ordered bike taxi services like Ola, Uber, and Rapido to suspend operations within six weeks.What’s happening: Justice BM Shyam Prasad ruled that bike taxis cannot operate until the state government formulates regulations under the Motor Vehicles Act, 1988.
Quick lookback:July 2021: The Karnataka government restricted bike taxi services, prompting firms to challenge the decision.August 2021: The companies appealed the order in the Karnataka Hugh Court, which directed the state not to act until the case matter was heard.April 2025: The Karnataka HC banned bike taxis for six weeks, instructing the state to establish guidelines.
Elsewhere: On Tuesday, Maharashtra, which banned bike taxis in January 2023, conditionally allowed them to operate in the state under strict regulations:The companies must have a minimum of 50 bikes and a maximum distance of 15 kilometres.The scheme applies only to e-bike taxis.Zooming out: In February 2024, India’s road transport ministry essentially approved bike taxis.
An advisory clarified that motorcycles qualify as “contract carriage” under the Motor Vehicles Act, 1988, allowing them to legally transport passengers for hire under a specific agreement.Also Read: ETtech in-depth: Ride-hailing on a rollercoaster ride with sharp twists, turnsOther Top Stories By Our Reporters 119924370Infosys says Cognizant used its healthcare business for market control: In a new development in their ongoing legal battle, Infosys has accused Cognizant Technology Solutions of using monopoly power to hinder competition with its healthcare platform, Cognizant TriZetto Software Group.Venture debt remained flat in 2024 at $1.
2 billion: Report | Venture debt remained flat in 2024 at $1.2 billion, the same as the previous year. It, however, grew at a compound annual growth rate (CAGR) of 58% between 2018 and 2024, according to the Global Venture Debt Report 2025 by Stride Ventures, a venture debt firm, and global management consulting firm Kearney.
Tata Electronics appoints KC Ang president and head of Tata Semiconductor Manufacturing: On Wednesday, Tata Electronics announced the appointment of KC Ang as president and head of its foundry business, Tata Semiconductor Manufacturing. Ang will report to Randhir Thakur, CEO and MD of Tata Electronics.Uber launches teen-focused ride-hailing service in India: Ride-hailing giant Uber on Wednesday introduced 'Uber for Teens' in India.
The service is designed to provide safe and reliable transportation for teenagers aged 13-17.Global Picks We Are Reading■ US labour watchdog halts Apple cases after Donald Trump picks group’s lawyer for top job (FT) ■ Trump to review preliminary TikTok deal as deadline approaches (WSJ) ■ CoreWeave’s two-day 65% pop helps investors forget tepid IPO (Bloomberg).
