Bengaluru – July 5th 2024: India’s fintech ecosystem achieved a significant milestone in the first half of 2024, ranking among the top three globally funded fintech sectors alongside the US and the UK, according to a report released on Friday by Tracxn, a leading market intelligence platform.
The report highlights that the domestic fintech sector received $795 million in funding during the first half (H1) of 2024, which, although impressive, represents an 11% decline from the second half (H2) of 2023.
Key highlights from the report include:
- Perfios Becomes Unicorn: Perfios was the only fintech company to achieve unicorn status in 2024.
- Acquisitions and IPOs: The fintech sector witnessed six acquisitions and five initial public offerings (IPOs) during the January-June period.
- Regional Funding Leaders: Bengaluru led the way in total fintech funding raised in 2024, followed by Mumbai and Pune, indicating the rise of multiple fintech hubs across India’s diverse startup ecosystem.
“Despite the global funding slowdown, India’s FinTech ecosystem shows agility and adaptability, supported by robust economic fundamentals,” said Neha Singh, Co-Founder at Tracxn. She expressed optimism that a supportive policy environment and technological advancements would continue to create new opportunities for growth and innovation in the near future.
Funding Stages and Leading Investors
- Late-Stage Funding: In H1 2024, late-stage funding stood at $551 million, marking a 26% increase from $436 million in H2 2023.
- Seed-Stage Funding: Seed-stage funding amounted to $65 million, a 7.4% rise from $60.5 million in H2 2023.
Leading investors in the Indian fintech sector during this period were Peak XV Partners, Y Combinator, and LetsVenture, showcasing the continued interest and confidence in the sector’s potential.
India’s fintech sector remains dynamic and resilient, demonstrating significant growth potential despite global economic challenges. The sector’s adaptability and strong economic fundamentals are expected to drive further advancements and investments in the coming months.
*Source – IANS
