In the first half of calendar year 2024 (H1 2024), when pitted against the same period of 2023 (H1 2023), Indian fintech companies witnessed a sharp 59 percent drop in funding. Funding to fintech firms in H1 2024 was pegged at USD 795 million, 59 per cent less than USD 1.93 billion raised in H1 2023. Subsequently, the funding was down 11 percent from USD 896.7 million. Furthermore, according to data from market intelligence platform Tracxn’s Geo Annual India Fintech Report H1 2024, the sector raised in H2 2023.
Also to note, the number of funding rounds have shrunk significantly from 140 in H1 2023 to 91 rounds in H1 2024. Add to this, funding rounds have been reduced from 113 in H2 2023. The country’s fintech funding market continued to remain amongst the top three globally after the United States of America (USA) and the United Kingdom (UK) despite a contraction in funding.
Top funding rounds saw USD 144 million raised by financial services company Credit Saison in a series D round, and educational loans platform Avanse raising a series C round of USD 120 million. Furthermore, the only unicorn in H1 2024 - Perfios - raised USD 80 million in a series D funding round. Also, at the same time, the fintech sector saw five companies listing themselves on the bourses during H1 2024. So, if we look back, there were no Initial Public Offerings in H1 2023. Additionally, acquisitions also dipped to 6 from 18 during the same time respectively. Peak XV Partners, Y Combinator, and LetsVenture were the Major investors leading investments in fintechs.
Venture Catalysts, BeeNext, and Y Combinator led the seed investments; Peak XV Partners, Sorin, and Quona were among the prominent investors in early-stage investments. Similarly, Epiq Capital Advisors, UC-RNT Fund, and Amara Partners were the leading late-stage investors in H1 2024. “Despite the global funding slowdown, India’s fintech ecosystem shows agility and adaptability, supported by robust economic fundamentals. The slowdown in funding reflects the need for a cautious outlook and strategic planning among startups and investors,” said Neha Singh, Co-founder, Tracxn.
