 "Fintech")
After a prolonged funding winter, the Indian fintech ecosystem is showing signs of recovery. (Photo: PTI)
After a prolonged funding winter, the Indian fintech ecosystem is showing signs of recovery, with the sector recording a 66 per cent year-on-year growth in funding to $778 million in the third quarter of calendar year 2024 (Q3CY24).
The sector raised $471 million in Q3CY23, according to data from market intelligence platform Tracxn.
Click here to connect with us on WhatsApp
On a quarter-on-quarter basis, funding to the fintech sector more than doubled from $293 million in Q2CY24.
The major factor driving the increased funding was DMI Finance, a consumer and small and medium enterprises (SME) loans firm, which raised $334 million in Q3CY24.
Despite the increase in funding, the number of funding rounds continued to decline. The sector saw 46 rounds in Q3CY24, a 25 per cent decline from 62 rounds in Q3CY23.
Alternative lending, investment tech, and payments were the top segments receiving the highest funding.
The alternative lending segment received a total of $517 million in funding in Q3CY24, a 49 per cent increase compared to the $348 million raised during the same period last year.
Fintech acquisitions in India declined by 50 per cent, with four acquisitions recorded in Q3CY24 compared to eight in Q3CY23.
India’s fintech ecosystem continues to rank as the fourth largest in the world, after the United States, China, and the United Kingdom.
“The resurgence in funding for the Indian fintech industry signifies a pivotal moment in our journey towards becoming a global fintech hub. With rising digital adoption and supportive government policies, we are positioned for sustained growth,” said Neha Singh, co-founder of Tracxn.
First Published: Oct 15 2024 | 2:54 PM IST
