Perfios, the Bengaluru-based fintech enabler, has encountered headwinds as India’s financial services sector shows signs of fatigue. The company, which provides critical infrastructure to banks, non-banking financial companies (NBFCs), and insurance firms, now faces a challenging environment where lending institutions have slowed down their pace, directly impacting Perfios’ operations and revenues.
Despite its solid product offerings and a strong track record, Perfios cannot escape the ripple effects of macroeconomic shifts. The firm had enjoyed a steady upward trajectory over the past few years, capitalizing on India’s digitization wave in banking and finance. However, 2025 has introduced a more cautious lending environment, a tighter funding climate, and regulatory scrutiny — all of which now shape Perfios’ path forward.
Lending Partners Pull Back
Perfios primarily sells its data aggregation and analytics platforms to financial institutions that use the tools for credit assessment, underwriting, and risk profiling. This business model ties Perfios’ growth closely to the health of the lending industry. As NBFCs and fintech lenders become more conservative in disbursing loans, Perfios feels the slowdown first-hand.
In recent months, several of Perfios’ top clients have trimmed their lending volumes, citing increased credit risk and reduced consumer demand. As a result, these institutions have scaled back usage of Perfios’ APIs and analytics platforms. This decline in transaction volume directly affects Perfios’ revenue, given that much of its pricing follows a pay-per-use model.
Perfios’ management acknowledged the slowdown during internal meetings, urging the sales and product teams to focus on client retention and cross-selling rather than acquiring new accounts at unsustainable costs. The company has postponed some planned expansion activities, including product launches tailored for newer lending verticals like education finance and buy-now-pay-later (BNPL).
Cautious Optimism After Strong FY24
Perfios entered FY25 on a strong footing. In FY24, the company reported robust growth, fueled by the recovery of the lending market post-COVID and the rise of digital-first lenders. The company onboarded several marquee clients, launched new AI-powered tools for fraud detection, and expanded its presence in Southeast Asia.
However, the current scenario has forced a strategic reset. Instead of chasing growth aggressively, Perfios has shifted its focus to improving unit economics, customer success, and long-term product value. The leadership has emphasized profitability and resilience over vanity metrics like market share or valuation.
“We understand that the financial ecosystem is going through a recalibration. Our job now is to support our partners through this phase by offering reliable, scalable tools that help them mitigate risk and improve efficiency,” a senior Perfios executive said under condition of anonymity.
Investors Take Note
Investors, too, are watching the situation closely. Perfios raised $229 million in 2023 in a funding round led by Kedaara Capital, pushing its valuation close to $1 billion. The fresh capital was meant to fund overseas expansion and support M&A activities. But with the domestic lending environment turning tepid, investors now expect the company to deploy funds more prudently.
Perfios’ investors have pressed the management team for better forecasting, conservative burn rates, and a focus on profitability metrics such as EBITDA margins and net revenue retention. The company still sits on significant cash reserves, which offers a cushion, but investors remain wary of prolonged stagnation in the lending sector.
Despite the caution, most backers retain faith in Perfios’ long-term outlook. The underlying technology remains solid, and the company continues to enjoy strong client stickiness. Moreover, as regulatory mandates for financial transparency and data governance grow stricter, platforms like Perfios stand to benefit from higher compliance-driven demand.
Regional Play Offers Buffer
One of Perfios’ smart bets in the last two years lies in its regional diversification. The company expanded into Indonesia, Vietnam, and the Middle East, signing up banks and fintechs that needed local credit decisioning solutions. These markets have shown more resilience in 2025 compared to India.
Perfios’ revenue from Southeast Asia has grown steadily, albeit from a smaller base. The company has prioritized localization, building tools that comply with region-specific regulations and language needs. Its “plug-and-play” model appeals to smaller digital banks and neo-lenders who lack in-house infrastructure.
Perfios’ global unit has now taken center stage in internal planning. The firm wants to increase the share of international revenue to 25% by FY26, up from the current 12%. This target reflects the need to hedge against India-centric risks and establish itself as a cross-border fintech infrastructure provider.
Regtech and Insurance Remain Growth Areas
While the lending segment slows down, Perfios finds new opportunities in regtech and insurance tech. The company has developed products that help insurers verify policyholders’ income and identity, speeding up onboarding processes and improving fraud detection.
Indian insurers are adopting digital faster than ever, especially after regulatory nudges from the Insurance Regulatory and Development Authority of India (IRDAI). Perfios has partnered with several mid-sized insurance players to offer end-to-end digital onboarding journeys, from KYC to underwriting.
Similarly, Perfios’ compliance suite for banks — which automates audit trails, AML reporting, and financial document extraction — has gained traction in recent quarters. With regulatory bodies tightening their grip on shadow banking and fintech lending, demand for such tools continues to rise.
The firm sees this as a strategic pivot: reduce reliance on loan disbursement cycles and diversify into verticals with more stable, regulation-driven demand.
Employee Sentiment and Hiring Trends
Inside the company, employee morale remains cautiously optimistic. Perfios has not announced any layoffs or hiring freezes, unlike several other startups navigating market uncertainty. However, it has slowed down recruitment in non-core roles and deferred joining dates for some lateral hires.
Management has kept communication transparent, updating teams on business metrics, challenges, and priorities. The product and engineering teams continue to work on roadmap features, though some experimental projects have been paused to conserve resources.
Perfios has also invested in upskilling and cross-training programs to make teams more versatile. This move helps the company reallocate talent quickly between growth areas like regtech and slower verticals like BNPL.
Road Ahead: Consolidation and Core Focus
Perfios plans to consolidate its position as the “infrastructure layer” for India’s evolving digital finance ecosystem. The leadership recognizes that the lending slowdown could last several quarters, but sees it as an opportunity to build enduring value.
The company is now doubling down on core strengths — document analysis, financial data intelligence, fraud detection, and regulatory workflows. At the same time, it will lean on its international markets and insurance vertical to stabilize revenue in the short term.
Perfios has weathered multiple cycles since its founding in 2008. This latest phase presents both a test and an opportunity. If the company can navigate the slowdown with discipline and foresight, it may emerge leaner, sharper, and better positioned for the next wave of fintech growth.