A boutique private family office backing ambitious founders across India, the UK & the US. Alize Capital | Alize Media | Alize Digital
Mumbai | London | Miami
Joined October 2023
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Diesel just crossed $6 ๐ฎ ๐ด๐ฎ๐น๐น๐ผ๐ป for the first time in America. Gasoline crossed the $4.25 ๐บ๐ฎ๐ฟ๐ธ. Food prices are up 2.7%.
These are also some major factors on which the political sentiment of America rests.
The same America whose currency still runs the world's financial plumbing through systems like SWIFT, CHIPS, Fedwire, and everything built around them.
Even if America accounts for roughly 10% of world trade, it represents 90% of that trade by dollar-denominated value.
And hence, food and fuel price changes in one country can move markets in fifty others.
๐๐ฒ๐ผ๐ฝ๐ผ๐น๐ถ๐๐ถ๐ฐ๐ ๐ต๐ฎ๐ ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ ๐ฎ๐ป ๐ถ๐ป๐ฑ๐ฒ๐ฝ๐ฒ๐ป๐ฑ๐ฒ๐ป๐ ๐๐ฎ๐ฟ๐ถ๐ฎ๐ฏ๐น๐ฒ.
Except there are no fixed constants left, and the coefficients keep changing constantly.
Perhaps this is why the world is seeing a move towards de-dollarisation (or does it?) and looking at alternatives in the form of ๐ด๐ผ๐น๐ฑ, ๐ฐ๐ผ๐บ๐บ๐ผ๐ฑ๐ถ๐๐ถ๐ฒ๐, ๐ฐ๐ฟ๐ถ๐๐ถ๐ฐ๐ฎ๐น ๐บ๐ถ๐ป๐ฒ๐ฟ๐ฎ๐น๐, ๐ฑ๐ถ๐ด๐ถ๐๐ฎ๐น ๐ฎ๐๐๐ฒ๐๐, ๐ฎ๐ป๐ฑ ๐ฎ๐น๐๐ฒ๐ฟ๐ป๐ฎ๐๐ถ๐๐ฒ ๐ฝ๐ฎ๐๐บ๐ฒ๐ป๐ ๐ฎ๐ป๐ฑ ๐๐ฒ๐๐๐น๐ฒ๐บ๐ฒ๐ป๐ ๐ฟ๐ฎ๐ถ๐น๐.
These could include blockchain, mBridge, a BRICS currency, the yuan, CIPS, or CBDCs.
For years, the world ran on a two-axis model: America on one side, Russia and the wider Global South on the other.
But ๐๐ต๐ถ๐ป๐ฎ ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ถ๐ป๐ด ๐ถ๐๐ ๐ผ๐๐ป ๐ฎ๐
๐ถ๐ ๐ต๐ฎ๐ ๐ฏ๐ฟ๐ผ๐ธ๐ฒ๐ป ๐๐ต๐ฎ๐ ๐บ๐ผ๐ฑ๐ฒ๐น.
The recent Russia-US oil developments and the sudden waiver of sanctions on India remind us that geopolitical alignments are rarely insulated from immediate domestic political economy pressures or geostrategic compulsions, or cast in stone for all time to come.
๐ฆ๐ผ ๐๐ต๐ฒ๐ฟ๐ฒ ๐ฑ๐ผ๐ฒ๐ ๐๐ป๐ฑ๐ถ๐ฎ ๐๐ถ๐ ๐ถ๐ป ๐๐ต๐ถ๐?
Probably on the z-axis.
If you remember your coordinate geometry, that's the point with coordinates (0, 0, ๐).
Because instead of choosing an axis, itโs entering a new dimension.
It trades with the West, maintains strategic ties with Russia, participates in BRICS, remains part of the Global South, and also builds its own digital, financial, and AI infrastructure.
And now, with such fluctuating world dynamics, how can defence and national security remain just another '๐ด๐ฆ๐ค๐ต๐ฐ๐ณ' or subject?
๐ง๐ต๐ฒ๐ ๐ฎ๐ฟ๐ฒ ๐๐๐ผ ๐๐ถ๐ฑ๐ฒ๐ ๐ผ๐ณ ๐๐ต๐ฒ ๐๐ฎ๐บ๐ฒ ๐ฐ๐ผ๐ถ๐ป, ๐ท๐ผ๐ถ๐ป๐ฒ๐ฑ ๐ฎ๐ ๐๐ต๐ฒ ๐ต๐ถ๐ฝ.
National security today increasingly intersects with the sovereignty of semiconductors, critical minerals, energy infrastructure, cybersecurity, satellite communications, advanced manufacturing, and the breakthrough technologies to come that will keep these systems running.
So regardless of which axis has heft at any given time, ๐ต๐ฉ๐ฆ ๐ฏ๐ฆ๐ฆ๐ฅ ๐ง๐ฐ๐ณ ๐ด๐ต๐ณ๐ข๐ต๐ฆ๐จ๐ช๐ค ๐ณ๐ฆ๐ด๐ช๐ญ๐ช๐ฆ๐ฏ๐ค๐ฆ ๐ข๐ฏ๐ฅ ๐ข๐ถ๐ต๐ฐ๐ฏ๐ฐ๐ฎ๐ช๐ค ๐ง๐ญ๐ฆ๐น๐ช๐ฃ๐ช๐ญ๐ช๐ต๐บ ๐ณ๐ฆ๐ฎ๐ข๐ช๐ฏ๐ด.
Perhaps that is the significance of India's z-axis. Not standing with an existing or old-school world order, but rather building the capabilities, capacity, and geostrategic nimbleness to navigate it on its own terms.
๐๐ต'๐ด ๐ค๐ช๐ท๐ช๐ญ๐ช๐ด๐ข๐ต๐ช๐ฐ๐ฏ๐ข๐ญ. ๐๐ข๐บ๐ฃ๐ฆ ๐ฆ๐ท๐ฆ๐ฏ ๐ฆ๐น๐ช๐ด๐ต๐ฆ๐ฏ๐ต๐ช๐ข๐ญ.
An interesting lens on how the geopolitical order is shifting. Curious how you see India's place in it.
@Sri_Kondapalli @MohanCRaja @nitingokhale @Chellaney @haider @chandrarsrikant @ShwetaRKohli
Alize Capital retweeted
Know Your Data (KYD) could soon become the new KYC, moving from being compliance jargon into everyday conversations.
As data protection takes centre stage, consent-centric platforms are set to become the guardians of our digital identities.
#SARC #DataSurity #DPDP #DPDPAct #DataProtection
High time we move from discussing how corporate capital, or any capital for that matter, can back innovation, to actually doing it. If done well, it gives companies early access to breakthrough technologies, creates strategic options, and, of course, generates financial returns.
Glad to say, at Alize, backing emerging and frontier technologies and the people building them has long been part of the thesis. Interesting to see this conversation move further into the mainstream.
Worth a read by @AdithCharlie in conversation with @RajanAnandan & Saurabh Srivastava๐๐
the-captable.com/2026/10/indโฆ
Know Your Data (KYD) could soon become the new KYC, moving from being compliance jargon into everyday conversations.
As data protection takes centre stage, consent-centric platforms are set to become the guardians of our digital identities.
#SARC #DataSurity #DPDP #DPDPAct #DataProtection
Alize Capital retweeted
Circular financing and circular demand are now intertwined๐
AI spending is expected to hit $1.3 trillion by 2027, running well ahead of debt financing (much of which comes from private credit at marginally higher spreads).
The question is: could private credit be underestimating the risk premium, while equity investors are overestimating future profits?
๐จ THE AI HOUSE OF CARDS HAS STARTED TO FALL.
OpenAI's annualized revenue has reportedly reached around $50 Billion, but that's still $20 Billion below expectations.
And Oracle fell more than 6% as Nasdaq 100 dropped 1.5%.
But this is just the tip of the iceberg.
55% of AI investment deal value now comes from other AI companies.
And around 26% involves circular deals, where companies invest in businesses that also buy their products and services.
This means some of the money being counted as AI revenue is coming from companies that are also financing the AI boom.
We saw similar financing arrangements during the late-1990s telecom boom, before the industry suffered a massive crash.
Now imagine what happens if OpenAI and other AI companies fail to meet their revenue expectations.
The companies funding the boom could lose money on their investments while also losing revenue from the same customers.
And that could trigger a much bigger selloff across the AI sector.
Circular financing and circular demand are now intertwined๐
AI spending is expected to hit $1.3 trillion by 2027, running well ahead of debt financing (much of which comes from private credit at marginally higher spreads).
The question is: could private credit be underestimating the risk premium, while equity investors are overestimating future profits?
๐จ THE AI HOUSE OF CARDS HAS STARTED TO FALL.
OpenAI's annualized revenue has reportedly reached around $50 Billion, but that's still $20 Billion below expectations.
And Oracle fell more than 6% as Nasdaq 100 dropped 1.5%.
But this is just the tip of the iceberg.
55% of AI investment deal value now comes from other AI companies.
And around 26% involves circular deals, where companies invest in businesses that also buy their products and services.
This means some of the money being counted as AI revenue is coming from companies that are also financing the AI boom.
We saw similar financing arrangements during the late-1990s telecom boom, before the industry suffered a massive crash.
Now imagine what happens if OpenAI and other AI companies fail to meet their revenue expectations.
The companies funding the boom could lose money on their investments while also losing revenue from the same customers.
And that could trigger a much bigger selloff across the AI sector.
A recognition well deserved.
Ishani, a filmmaker and cinematographer, received a Special Jury Mention at IDSFFK 2026 (@iffklive) for her UK cycling film, shot across England, where she served as the assistant cameraperson.
We're particularly pleased to see this recognition as Ishani joins us as Director on an upcoming documentary project, exploring climate change and livelihoods. We look forward to seeing where you take the next one.
#Recognition #Award #Filmmaking #Documentary #Shortfilm #IDSFFK
Alize Capital retweeted
Perception is a lagging indicator. Important, but not the bottleneck.
The depth of new-age capital ultimately depends on how clearly investors can see the path to liquidity... whether youโre a PE fund or a Family Office.
Exit paths need to be clearer for deeptech. Solving for hard societal shifts requires conviction, and then relentless execution. But the bias must always be towards action. Itโs not for everyone.
Only for the foolish (and the brave).
Indiaโs deeptech funding hit a record $2.9B in 2025, yet 62% of funds still cited exit visibility as a key challenge (Bharat DeepTech Report 2026).
The ecosystem is clearly proving it can attract capital. The next challenge is giving investors a credible path to getting that capital back with returns over a defined horizon. Even secondaries at valuations established in subsequent private-market rounds can create meaningful liquidity.
Capital will come at each stage. Think of it as a 400-metre relay. One fund hands the baton to the next as the company moves from one stage of maturity to another. Everyone just has to keep moving upwards and forward, tackling the world in their own way.
Disclosure: Alize Capital is an LP in a deeptech fund.
@ShwetaRKohli @chandrarsrikant @AryamanGupta_
Four years of progress in Indian deep tech. Yet on international panels, I still hear the same three questions from global allocators.
We have much better answers today. But the excitement has yet to translate into foreign capital flowing at the scale this ecosystem deserves.
At @FundForumEvent Asia in Singapore, we discussed whether India is the next trillion-dollar wealth opportunity. These were the questions that stayed with me:
โIndia has been a consumer story. What changed?โ
The technical talent was always there.
What was missing was risk capital willing to back ambitious scienceโand role models showing founders that building globally competitive technology companies from India was possible.
Four years ago, @_RicebergVC_ was among a handful of funds starting to invest in this space. Early investors helped address the capital gap. Founders did the harder work: building the companies that others could look up to.
That combination is changing what the next generation believes it can build.
โWho funds the next round, especially before meaningful revenue?โ
A fair question. Technical milestones can take years, and the capital required often rises well before revenue does.
When we started, we had little expectation of domestic follow-on capital. We helped founders position themselves globally from day one: global customers, global partnerships and global investors.
For many breakthrough technologies, that is a natural path. The market for a better propulsion system, semiconductor or medical technology extends far beyond the country where it was developed.
We have seen this work in our portfolio. Domestic capital is also becoming more active, with the governmentโs RDI Fund adding another source of support.
The next test is whether funding remains available through the long journey from technical validation to commercial scale.
โHow do investors exit?โ
This is where we still need a longer track record. But the answer depends on which investorโand which kind of companyโwe are talking about.
Early investors can find liquidity through secondaries before a company reaches an IPO. We have facilitated secondary liquidity for our LPs and bought out early investors to increase our own holding. We have experienced both sides.
Companies building a critical piece of a larger technology stack can attract strategic buyers. @Infineonโs acquisition of C2i Semiconductors is one example.
Companies building toward category leadership may access public markets and use that capital to expand and consolidate. @ankit_ideaForge and @ideaforge_tech have helped establish that possibility for Indian deep tech founders.
These paths exist. Now we need more examples, more realised returns and more evidence that they can be repeated.
My takeaway: the ecosystem has moved faster than the international perception of it.
Founders are building stronger companies. The funding options are expanding. Exit paths are taking shape.
As investors, we need to make those proof points visible to global allocatorsโwith tangible outcomes they can underwrite.
Thank you to Flavio Melis for moderating, and Ashutosh Tiwari and Krushali Jagiwala for bringing the public-market perspective.
The next chapter needs to turn growing conviction into capital.
Perception is a lagging indicator. Important, but not the bottleneck.
The depth of new-age capital ultimately depends on how clearly investors can see the path to liquidity... whether youโre a PE fund or a Family Office.
Exit paths need to be clearer for deeptech. Solving for hard societal shifts requires conviction, and then relentless execution. But the bias must always be towards action. Itโs not for everyone.
Only for the foolish (and the brave).
Indiaโs deeptech funding hit a record $2.9B in 2025, yet 62% of funds still cited exit visibility as a key challenge (Bharat DeepTech Report 2026).
The ecosystem is clearly proving it can attract capital. The next challenge is giving investors a credible path to getting that capital back with returns over a defined horizon. Even secondaries at valuations established in subsequent private-market rounds can create meaningful liquidity.
Capital will come at each stage. Think of it as a 400-metre relay. One fund hands the baton to the next as the company moves from one stage of maturity to another. Everyone just has to keep moving upwards and forward, tackling the world in their own way.
Disclosure: Alize Capital is an LP in a deeptech fund.
@ShwetaRKohli @chandrarsrikant @AryamanGupta_
Four years of progress in Indian deep tech. Yet on international panels, I still hear the same three questions from global allocators.
We have much better answers today. But the excitement has yet to translate into foreign capital flowing at the scale this ecosystem deserves.
At @FundForumEvent Asia in Singapore, we discussed whether India is the next trillion-dollar wealth opportunity. These were the questions that stayed with me:
โIndia has been a consumer story. What changed?โ
The technical talent was always there.
What was missing was risk capital willing to back ambitious scienceโand role models showing founders that building globally competitive technology companies from India was possible.
Four years ago, @_RicebergVC_ was among a handful of funds starting to invest in this space. Early investors helped address the capital gap. Founders did the harder work: building the companies that others could look up to.
That combination is changing what the next generation believes it can build.
โWho funds the next round, especially before meaningful revenue?โ
A fair question. Technical milestones can take years, and the capital required often rises well before revenue does.
When we started, we had little expectation of domestic follow-on capital. We helped founders position themselves globally from day one: global customers, global partnerships and global investors.
For many breakthrough technologies, that is a natural path. The market for a better propulsion system, semiconductor or medical technology extends far beyond the country where it was developed.
We have seen this work in our portfolio. Domestic capital is also becoming more active, with the governmentโs RDI Fund adding another source of support.
The next test is whether funding remains available through the long journey from technical validation to commercial scale.
โHow do investors exit?โ
This is where we still need a longer track record. But the answer depends on which investorโand which kind of companyโwe are talking about.
Early investors can find liquidity through secondaries before a company reaches an IPO. We have facilitated secondary liquidity for our LPs and bought out early investors to increase our own holding. We have experienced both sides.
Companies building a critical piece of a larger technology stack can attract strategic buyers. @Infineonโs acquisition of C2i Semiconductors is one example.
Companies building toward category leadership may access public markets and use that capital to expand and consolidate. @ankit_ideaForge and @ideaforge_tech have helped establish that possibility for Indian deep tech founders.
These paths exist. Now we need more examples, more realised returns and more evidence that they can be repeated.
My takeaway: the ecosystem has moved faster than the international perception of it.
Founders are building stronger companies. The funding options are expanding. Exit paths are taking shape.
As investors, we need to make those proof points visible to global allocatorsโwith tangible outcomes they can underwrite.
Thank you to Flavio Melis for moderating, and Ashutosh Tiwari and Krushali Jagiwala for bringing the public-market perspective.
The next chapter needs to turn growing conviction into capital.
Alize Capital retweeted
Great job by @MeluhaMaritime , Sabre & Quill and Roy family.
The original book was dedicated to the Admirals Grand children.
All of them now older and wiser now to read and imbibe his thought legacy.
Of course his legacy of service to Country and his Service - serving under two ensigns. Is yet another story and saga
Whose time will come๐ซ
@SandeepUnnithan
@SanjoyRoyTWA
Amazing!Finally๐
The title says it all. Prescient of Admiral in '95 to envisage IOR as the 'Hinge' in Geo Politics๐ค
Shout out to Meluha,Roy Fly, Sabre & Quill for making it happen
"a labor of love"
Do Restock & Refresh libraries & minds๐ค
Alize Capital retweeted
@SandeepUnnithan
@SanjoyRoyTWA
Amazing!Finally๐
The title says it all. Prescient of Admiral in '95 to envisage IOR as the 'Hinge' in Geo Politics๐ค
Shout out to Meluha,Roy Fly, Sabre & Quill for making it happen
"a labor of love"
Do Restock & Refresh libraries & minds๐ค
It indeed is. As @probirpaymate brings out, #OperationX by @RealSandeepU1 is a splendid account of what happened. It reads like a thriller. However, #TheWarintheIndianOcean is probably the first authoritative and among the rare descriptions of #OperationX, without invoking the name of the Op.
The fascinating aspect is that #VAdmMKRoy writes about the Water Wing of Mukti Bahini without once giving the reader a clue that he was the mastermind, the Sutradhar of the Operation as the Navy's Spymaster.
@zwerubae & I endeavor to bring more to light in a forthcoming biography of the legendary Admiral. Not just #OperationX but his impressive contribution to the '71 war, as well as across his long distinguished career, including after retirement, as our foremost Navalist.
Which is why the revised edition of his book, published now, is an important read. It gives some understanding of the Man and his mind. For long, serious students of Indian military history were desperately seeking the odd rare copy. Now, it's easily available.
For us at @MeluhaMaritime to assist in bringing it out in the centenary year of the great Admiral is a matter of huge honour and privilege.
@EmergingRoy
@MHSofIndia
@nmfindia @arunp2810
@ajaykraina @PadmajaParulkar
Alize Capital retweeted
@SandeepUnnithan
Must read Sandeep Unnithan book Operation X published by Harper Collins. Fascinating never told account. Beats any modern day clandestine ops by a fair mile.
amzn.in/d/04j5Hi29
Great job by @MeluhaMaritime , Sabre & Quill and Roy family.
The original book was dedicated to the Admirals Grand children.
All of them now older and wiser now to read and imbibe his thought legacy.
Of course his legacy of service to Country and his Service - serving under two ensigns. Is yet another story and saga
Whose time will come๐ซ
@SandeepUnnithan
@SanjoyRoyTWA
Amazing!Finally๐
The title says it all. Prescient of Admiral in '95 to envisage IOR as the 'Hinge' in Geo Politics๐ค
Shout out to Meluha,Roy Fly, Sabre & Quill for making it happen
"a labor of love"
Do Restock & Refresh libraries & minds๐ค
Alize Capital retweeted
๐ข๐๐ ๐ผ๐ณ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐ณ๐ผ๐ฟ ๐๐ฒ๐ฎ๐ฟ๐. ๐๐๐ ๐๐๐ง ๐๐ฃ ๐ฉ๐๐ ๐๐ฃ๐๐๐๐ฃ ๐๐๐๐๐ฃ ๐ฏ๐ ๐ฉ๐ถ๐ฐ๐ฒ ๐๐ฑ๐บ๐ถ๐ฟ๐ฎ๐น ๐ . ๐. ๐ฅ๐ผ๐ ๐ถ๐ ๐ฏ๐ฎ๐ฐ๐ธ.
A seminal account of the Navy in the ๐ญ๐ต๐ณ๐ญ ๐ช๐ฎ๐ฟ, and of much in maritime affairs beyond it, this book had become very hard to find. Not anymore.
Marking ๐ฉ๐ถ๐ฐ๐ฒ ๐๐ฑ๐บ๐ถ๐ฟ๐ฎ๐น ๐ . ๐. ๐ฅ๐ผ๐โ๐ ๐ฐ๐ฒ๐ป๐๐ฒ๐ป๐ฎ๐ฟ๐ ๐๐ฒ๐ฎ๐ฟ, the revised edition carries a new foreword by ๐๐ฑ๐บ ๐๐ฟ๐๐ป ๐ฃ๐ฟ๐ฎ๐ธ๐ฎ๐๐ต (former Chief of the Naval Staff and Chairman, Chiefs of Staff Committee), alongside the original foreword by ๐๐ฑ๐บ ๐ฆ๐ ๐ก๐ฎ๐ป๐ฑ๐ฎ (Chief of the Naval Staff during the 1971 War).
It is published by @QuillSabre in association with the ๐ฅ๐ผ๐ ๐ณ๐ฎ๐บ๐ถ๐น๐ and curated with @MeluhaMaritime.
Understanding India's strategic past matters to those building its strategic future, and Alize Capital is proud to be associated with this launch.
For naval officers, serving and retired. For ship and unit libraries. For students of geopolitics and IR. And for anyone curious about what happened at sea in 1971, and why it still matters.
Get your copy here: amazon.in/dp/8169038219
๐ข๐๐ ๐ผ๐ณ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐ณ๐ผ๐ฟ ๐๐ฒ๐ฎ๐ฟ๐. ๐๐๐ ๐๐๐ง ๐๐ฃ ๐ฉ๐๐ ๐๐ฃ๐๐๐๐ฃ ๐๐๐๐๐ฃ ๐ฏ๐ ๐ฉ๐ถ๐ฐ๐ฒ ๐๐ฑ๐บ๐ถ๐ฟ๐ฎ๐น ๐ . ๐. ๐ฅ๐ผ๐ ๐ถ๐ ๐ฏ๐ฎ๐ฐ๐ธ.
A seminal account of the Navy in the ๐ญ๐ต๐ณ๐ญ ๐ช๐ฎ๐ฟ, and of much in maritime affairs beyond it, this book had become very hard to find. Not anymore.
Marking ๐ฉ๐ถ๐ฐ๐ฒ ๐๐ฑ๐บ๐ถ๐ฟ๐ฎ๐น ๐ . ๐. ๐ฅ๐ผ๐โ๐ ๐ฐ๐ฒ๐ป๐๐ฒ๐ป๐ฎ๐ฟ๐ ๐๐ฒ๐ฎ๐ฟ, the revised edition carries a new foreword by ๐๐ฑ๐บ ๐๐ฟ๐๐ป ๐ฃ๐ฟ๐ฎ๐ธ๐ฎ๐๐ต (former Chief of the Naval Staff and Chairman, Chiefs of Staff Committee), alongside the original foreword by ๐๐ฑ๐บ ๐ฆ๐ ๐ก๐ฎ๐ป๐ฑ๐ฎ (Chief of the Naval Staff during the 1971 War).
It is published by @QuillSabre in association with the ๐ฅ๐ผ๐ ๐ณ๐ฎ๐บ๐ถ๐น๐ and curated with @MeluhaMaritime.
Understanding India's strategic past matters to those building its strategic future, and Alize Capital is proud to be associated with this launch.
For naval officers, serving and retired. For ship and unit libraries. For students of geopolitics and IR. And for anyone curious about what happened at sea in 1971, and why it still matters.
Get your copy here: amazon.in/dp/8169038219
Alize Capital retweeted
While rainfall has been below IMD fx. And highly spatially distorted for 1st time in 10 yrs.
Acreage losses yet could be minimal. Whilst Khariff yields from the low rain-low irrigation areas below par.
Mahabaleshwar โ is one of Maharashtraโs wettest places and known for its heavy monsoon โ & figures among the talukas declared drought-affected this year.
Clearly goes to show that a place can receive huge amounts of rain and still face drought conditions when rainfall is unevenly distributed and long dry spells set in.
Alize Capital retweeted
Like every free expressway eventually becomes a toll road. Or every free app eventually turns into a subscription model. UPI is now following the same pattern.
Once the network effect takes hold and demand behaviour is shaped, monetisation is only a matter of time. MDR was always going to follow. Hence, better late than never, the charging of MDR on some value of UPI transactions is welcome.
PSPs and fintech players across payments and settlement need this. They really do need a leg up.
The worry (was) that merchants would pass the cost to unsuspecting customers, like travel agents already do with card payments. But if the cost is absorbed within the system to recoup costs and improve services across banks, NPCI, and fintech providers, that's a fair trade.
Headlines say ~96% of UPI transactions stay free; only ~4% fall under the new MDR.
Which raises a few questions:
# How much will that MDR actually be?
# How will revenue be shared across the network?
# How much topline revenue does this bring into the UPI ecosystem?
And lastly, how does this change RBI's short-term cash-demand modelling? Forecasts so far showed short-run cash demand dampening due to digitised payments. Will this flip?
Like every free expressway eventually becomes a toll road. Or every free app eventually turns into a subscription model. UPI is now following the same pattern.
Once the network effect takes hold and demand behaviour is shaped, monetisation is only a matter of time. MDR was always going to follow. Hence, better late than never, the charging of MDR on some value of UPI transactions is welcome.
PSPs and fintech players across payments and settlement need this. They really do need a leg up.
The worry (was) that merchants would pass the cost to unsuspecting customers, like travel agents already do with card payments. But if the cost is absorbed within the system to recoup costs and improve services across banks, NPCI, and fintech providers, that's a fair trade.
Headlines say ~96% of UPI transactions stay free; only ~4% fall under the new MDR.
Which raises a few questions:
# How much will that MDR actually be?
# How will revenue be shared across the network?
# How much topline revenue does this bring into the UPI ecosystem?
And lastly, how does this change RBI's short-term cash-demand modelling? Forecasts so far showed short-run cash demand dampening due to digitised payments. Will this flip?