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Billion Indians have no money to spend

The country's central bank has also cracked down on easy unsecured lending that propped up demand after the Covid pandemic. Much of the consumption spending of the "emerging" or "aspirant" class of Indians was led by such borrowing and "turning off that tap will definitely have some impact on consumption", says Pai. In the short run, two things are expected to help boost spending - a pick-up in rural demand on the back of a record harvest and a $12 billion tax give-away in the recently concluded budget. It will not be "dramatic" but could boost India's GDP - largely driven by consumption - by over half a percent India's middle class - which has been a major engine for consumer demand - is being squeezed out, with wages pretty much staying flat, according to data compiled by Marcellus Investment Managers. "The middle 50% of India's tax-paying population has seen its income stagnate in absolute terms over the past decade. This implies a halving of income in real terms [adjusted for inflation]," says the report, published in January.

Lendingkart Seeks Funding Amid Cash Crunch, Valuation Drop

- Fintech startup **Lendingkart** is reportedly seeking fresh capital at a lower valuation from existing investor **Fullerton Financial Holdings (FFH)**. - The company's valuation is expected to drop to **$100 Mn** from **$350 Mn** in 2020 due to challenges in the unsecured loan market. - **FFH** plans to increase its stake to **60%** from **38%** as part of the capital infusion. - **Lendingkart** is facing asset quality problems with rising non-performing assets (NPAs) and increased credit costs. - The startup, which disburses loans to MSMEs, has disbursed 2.8 Lakh loans worth over **$1.8 Bn** across India since its inception. Source: [Inc42](https://inc42.com/buzz/lendingkart-seeks-down-round-amid-cash-crunch/)

Flipkart Group Launches New Payments App, super.money, Targeting First-Time Borrowers

- Flipkart has introduced a new payments app, super.money, to facilitate UPI payments and offer cashback, aiming to strengthen its position in the fintech sector. - The app, launched in beta in June, has already processed 10 million transactions and achieved 1 million downloads, offering up to 5% cashback on merchant transactions. - Super.money plans to introduce a credit on UPI feature, partnering with NPCI for a co-branded credit card, targeting borrowers from tier 2 and tier 3 cities. - Prakash Sikaria, CEO of super.money, emphasized the focus on first-time borrowers who have never had an unsecured credit card, aiming to formalize credit for this group. Source: [Live Mint](https://www.livemint.com/companies/start-ups/flipkart-group-payments-app-super-money-phonepe-credit-on-upi-first-time-borrowers-11724238836382.html)