India’s fintech sector had a banner year in 2021. It accounted for 12 of the 43 new unicorns and over 20% of the $38 billion raised by tech startups, according to Tracxn. This made it the digital economy’s most important segment. 

But 2022 has not begun on a good note. There have been a series of events that could have serious implications in terms of regulations. 

Worsening ties: The BharatPe saga got uglier this week as the company sacked Madhuri Jain Grover, who was heading financial controls. Alleged misappropriation of Rs 53 crore was cited as the reason, a charge she disputes. Her stock options have apparently been clawed back.

Madhuri is the wife of BharatPe managing director Ashneer Grover, who took a leave of absence in January after a rash of controversies over his conduct. The fallout led to an interval review, and reports now claim that the stage is set for Grover’s removal, though it seems unlikely that he would go without swinging back.