Fintech
Fintech funding totals $242 million so far this year
Bangalore, June 19: Fintech players have raised a total of $242 million this year, with companies operating in the enabler segment attracting the largest sum.
Fintech startups brought in $34 million in May, slightly higher than April’s funding, according to a report from financial consultancy firm Digital Fifth. Fundraising was the highest with $120 million in March.
Companies operating in the facilitator segment have attracted the maximum amount of funds. Other sectors that have seen decent funding include Regtech, Lendingtech and the Paytech sector, the report notes.
According to the report, nine companies in the enabler segment raised $23 million. IDFY, which operates in Regtech segments, emerged as the most funded startup this month, securing $10.7 million. Vegapay, which operates in the paytech segment, raised $5.5 million, and Weathtech startup Wealthy raised $5.3 million. Segments such as Lending-as-a-Service, insurance premium financing and lending against security platform attracted funding in May. Full-stack digital insurance company GoDigit also secured substantial funding via a successful IPO in May.
“The fintech segment is at an inflection point. Looking ahead, we expect companies operating in cross-border payments, digital lending, Insurtech and Anything as a Service (XaaS) models to attract investor attention. Over the past two years, our analysis of fintech investments has highlighted turbulent times in the sector. However, the slight increase in investment in May recognizes and recognizes this sector and its inherent resilience,” said the founder of The Digital Fifth.
In 2024, the fintech sector has seen 40 funding rounds so far. Over the course of the year, 39 unique fintech companies were funded and the facilitator segment raised a total of $147 million. Sectors such as lending and payments raised $34 million and $30 million, respectively. Among major cities, Bengaluru remained the funding epicenter in 2024, securing the highest share of fintech funding in India.
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