Authored By: Paramdeep Singh, a leadership veteran in Financial Services and an early investor/advisor to startups
While consumer fintechs continue to dominate headlines, B2B players are quietly reshaping India’s financial system. By digitising workflows, streamlining high-volume transactions and integrating compliance within enterprise rails, this segment is poised to deliver structural, long-term value to financial institutions, corporates and MSMEs.
This moment presents a turning point: public infrastructure is maturing, compliance is tightening and enterprise adoption is accelerating. A recent report by Chiratae Ventures and The Digital Fifth states that India’s B2B fintech market is projected to reach $20 billion by 2030. Despite a broader funding dip from $5.1 billion in 2022 to $2.4 billion in 2023, B2B fintechs attracted over $500 million which ultimately reflects investor confidence in infrastructure-first plays.
To unlock the next decade of growth in financial services, founders and investors must fundamentally build around 3 pillars: reliability, integration, and compliance. Reliability for Scalability
Fintech companies are overwhelmed with vulnerabilities to cyber attacks. Prioritising safety over speed, digital lending, especially for MSMEs, requires more than just automation to evaluate comprehensive business profiles including cash flows, vendor links and receivables. As lending is easy and recovery is harder, real time tracking becomes imperative to ensure growth without any liability.
In tandem, AgenticAI emerges as a pivotal juncture in safe underwriting. On the tech side, monolithic systems must evolve into microservices and cloud native stacks that allow faster updates, flexible scaling and secured integrations. This demonstrates reliability as more than surface polish that enterprise clients care less about slick UIs and more about systems that can handle scale, uptime and seamless backend performance.
Integration to Build Winning Systems
Building a winning fintech infrastructure demands interoperability. In trade finance, digital platforms must link exporters, banks, freight partners and customs to reduce settlement delays and drive faster resolution. For instance, Veefin enables PSU banks here. Similarly, modern payment systems must go beyond disbursements. In addition, CFOs demand treasury-grade visibility with features like audit trails, access controls and liquidity dashboards. Solutions like RazorpayX and Cashfree have also entered into the mainstream of enterprise finance operations. This makes integration not just a tech upgrade but a difference between tools that work in silos and platforms that power the entire ecosystem. Hence, fintech companies that treat APIs, reconciliation and workflow sync as core features will get to reinforce their leadership positioning in the industry.
Compliance to Strengthen Infrastructure
India’s regulatory landscape is highly fragmented. MSME-focused fintech companies always look to integrate personalised solutions for GST compliance, digital literacy gaps and alternative credit metrics across sectors. Companies that localise compliance at scale garner long-term trust and defensibility in the marketplace.
Those who localise compliance at scale will earn long-term trust and defensibility. Moreover, Regulatory Tech (RegTech) is core infrastructure and not a bolt-on. For instance, tools like Finnulate.ai are using AI to automate KYC, monitor risks in real-time, and reduce human error in compliance tasks. With increased regulatory scrutiny, these systems are crucial for operational continuity and investor confidence. This clearly showcases that builders and backers must view regulatory automation as the foundational architecture and not as a cost centre in India's maturing fintech ecosystem.
Emerging Opportunities
Within the fintech industry, there is a significant untapped potential in building SME platforms as MSMEs continue to lack effective tools to manage digital payments, access credit and handle payroll. The idea of integrating GenAI workflows with digital public infrastructure such as GSTN and UPI can add a scalable value in this segment. Besides, embedded finance is growing at an unprecedented pace, especially with the expansion of ONDC and other open digital networks. As a result, fintech solutions integrated into procurement, HRMS or logistics workflows can benefit from the strong network and high transactional relevance.
With cross-border finance gaining huge momentum, industry players like Skydo and TazaPay are working around simplification of global payment processes, foreign exchange, tax compliance and risk management. This also caters to the growing ambitions of Indian businesses planning to expand their footprints across international boundaries. Lastly, AI-powered decision support tools that allow forecasting, cost modeling, and analytics are projected to witness early adoption among mid-to-large enterprises and face margin pressures along with market volatility.
Final Thoughts
With fintech funding in India declining 33% YoY in 2024, B2B players are bracing for sharper scrutiny, where retention, ROI, and compliance matter more than ever. No longer operating in the shadows, B2B fintechs are now the core infrastructure of India’s financial stack. Subsequently, the right to win in this cycle lies with platforms that deliver predictable outcomes, regulatory resilience, and minimal switching friction- not vanity growth at all costs.
