Fintech
Fintech funding drops 59% to $795 million in H1 2024: Tracxn report | Financial News
But the fintech financing market in India continued to remain among the top three globally
Representative imageAjinkya Kawale Mumbai
Indian fintech companies have seen a sharp decline of 59% in funding in the first half of calendar year 2024 (H1 2024), compared to the same period in 2023 (H1 2023).
Fintech funding for the first half of 2024 was pegged at $795 million, down 59 percent from the $1.93 billion raised in the first half of 2023.
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Even on a sequential basis, funding declined 11 percent from $896.7 million raised by the sector in H2 2023, according to data from market intelligence platform Tracxn’s Geo Annual India Fintech Report H1 2024.
The number of funding rounds has dropped dramatically from 140 in H1 2023 to 91 rounds in H1 2024. Sequentially, funding rounds have also dropped from 113 in H2 2023.
But despite a contraction in funding, the country’s fintech funding market continued to remain among the top three globally, after the United States of America (USA) and the United Kingdom (UK).
Notable funding rounds include financial services firm Credit Saison raising $144 million in a Series D round and education lending platform Avanse raising a $120 million Series C round.
Perfios, the only unicorn company in H1 2024, has raised $80 million in a Series D funding round.
In the fintech sector, five companies went public in the first half of 2024, compared to zero IPOs in the first half of 2023.
Acquisitions fell to six from 18 over the same period. Major investors leading fintech investments include Peak XV Partners, Y Combinator, and LetsVenture.
Venture Catalysts, Y Combinator, and BeeNext led the early-stage investments; Peak XV Partners, Sorin, and Quona were leading early-stage investors; and Epiq Capital Advisors, UC-RNT Fund, and Amara Partners were leading late-stage investors in H1 2024.
“Despite the slowdown in global funding, India’s fintech ecosystem is showing agility and adaptability, supported by strong 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 of Tracxn.