Finding The Way
Amit Kumar, Co founder, GalaxyCard, a digital credit card start up, had just gone live with a non banking finance company (NBFC) when the IL&FS default crisis erupted in September 2018. The NBFC, which had started discussions with GalaxyCard in January 2018, had big plans but changed its mind. "Nine months of integration, legal paper work and banking transactions went for a toss in just 10 days," says Kumar. Many NBFCs that had tied up with fintech firms or were in the process of doing so are not even willing to talk, says Kumar. As a result, a lot of fintech lenders are finding it difficult to raise funds. Some are even closing down.
The liquidity crunch has put a spanner in the works for such firms despite the fact that the potential market of
