A renewed emphasis on profitability and scale means fintechs are battling to secure venture capital backing, and are scrambling to avoid the same fate as failed ultra-fast delivery company MilkRun.

David Kirk, the co-founder and managing partner of listed venture capital fund Bailador, told AFR Weekend that financial services disruptors with low margins were less attractive to investors in the present environment, where many start-ups are being forced to accept lower valuations.