Fintech Brief — July 21, 2026
Today’s Top Stories
1. Paytm Posts Fifth Straight Quarterly Profit; Board Skips Bonus Issue
Paytm parent One97 Communications reported a 79% year-on-year jump in consolidated net profit to ₹220 crore for Q1 FY27 (April–June 2026), driven by payments growth, merchant subscriptions, and financial services distribution. Revenue from operations rose 28% to ₹2,448 crore, up from ₹1,918 crore a year ago.
The board, which met on July 20, however decided against the proposed bonus share issue that had generated significant investor buzz. Over 7.5 lakh retail shareholders were watching for the maiden bonus, which would have been Paytm’s first since listing. The stock had climbed 19% in July leading up to the meeting. Paytm also approved a ₹100 crore allocation for its Paytm Money arm.
This marks Paytm’s fifth consecutive profitable quarter — a remarkable turnaround from the ₹840 crore net loss it posted in Q1 FY26, pre-RBI regulatory action on Paytm Payments Bank. The company has pivoted successfully toward payments processing, lending distribution, and AI-driven automation.
2. Travel Fintech Scapia Launches ₹20 Crore ESOP Buyback
Bengaluru-based travel fintech Scapia announced a ₹20 crore ESOP buyback, allowing eligible employees to liquidate up to 10% of their vested stock options. The buyback comes just two months after Scapia raised $63 million in a Series C funding round to accelerate its AI-first growth strategy.
Founded in 2022 by former Flipkart senior VP Anil Goteti, Scapia has raised over $135 million to date across multiple rounds from investors including Peak XV Partners, Elevation Capital, and Z47. The startup offers travel-focused co-branded credit cards with zero forex markup and rewards up to 20% on travel bookings, available across 17,500 pincodes in India.
ESOP buybacks remain a key retention tool in India’s competitive fintech talent market, with several startups opting for periodic liquidity events to reward early employees without triggering full dilution.
3. Govt Rules Out Long-Term Capital Gains Tax Relief for Domestic Equity Investors
India’s finance ministry told Parliament on Monday that there is no proposal to scrap long-term capital gains tax on equities for domestic investors, despite recently easing LTCG rules for foreign portfolio investors (FPIs) in government securities. The clarification puts to rest speculation ahead of potential supplementary budget discussions.
The statement comes against the backdrop of record FPI outflows — over ₹2.4 lakh crore in 2025, continuing into 2026 — with market participants lobbying for LTCG rate cuts from the current 12.5% (above ₹1.25 lakh exemption) to revive foreign investor sentiment. While the government exempted FPIs from LTCG on government debt investments last month to support the rupee and revive overseas flows, domestic retail investors will continue at existing rates. This dual treatment underscores the government’s prioritization of stabilizing sovereign debt inflows over broader equity market stimulus.
4. UPI Global Expansion Gains Momentum; NPCI Simplifies KYC for Foreign Users
India’s Unified Payments Interface continues its international expansion in 2026, with new country partnerships being established for cross-border payments. NPCI International recently added 13 more banks to widen the India-Singapore remittance corridor, enabling recipients in India to receive funds through preferred UPI-enabled apps like BHIM, Google Pay, and PhonePe.
NPCI is also in the final stages of simplifying the KYC process for its UPI One World service, which enables foreign tourists to make payments in India using QR codes. The streamlined onboarding aims to boost UPI adoption among international visitors — a key priority as India pushes for wider digital payments acceptance globally.
Sources: Economic Times, Livemint, Entrackr, Reuters, Thrive Journey News, Economic Times / UPI