The National Payments Corporation of India (NPCI) is redirecting its efforts towards fostering UPI growth in smaller states and the northeast region. The move aims to tap into new markets and drive the next phase of UPI adoption. Maharashtra leads in UPI transactions, accounting for approximately 10.4% of the total, followed by Karnataka at 5.3% and Uttar Pradesh at 5.2%. However, states like Gujarat, Madhya Pradesh, West Bengal, and Rajasthan contribute 2.5–3% each, handling 500–600 million transactions monthly.
Despite the positive trend, challenges persist in the form of the Zero MDR regime, which constrains revenue opportunities for private entities. Additionally, government support currently covers only a fraction of industry costs and potential MDR earnings. In parallel, Udaan, an IPO-bound company, is undergoing a strategic shift back to the Indian market. The firm has experienced a decline in revenue from Rs 10,000 crore in FY22 to approximately Rs 4,561 crore in FY25. However, losses have narrowed by 37% year-on-year to Rs 1,055 crore. Udaan has streamlined its operations from 80 to 16 cities and operates 25 warehouses, serving 200,000 shops.
The tech industry is witnessing a surge in interest in the government’s RDI fund, particularly as deeptech gains traction. VCs are actively engaging with the fund to explore investment opportunities. These developments underscore the evolving landscape of tech investments and strategic shifts within the Indian tech ecosystem.
Source: Tech-Economic Times