According to Bengaluru (Karnataka)-based Tracxn Technologies Limited, a leading global market intelligence platform, ‘Annual India Fintech Report 2024’, India ranked at 3rd position globally in terms of funding received in the fintech segment, despite witnessing a decline of 33% on a Year-over-Year (Y-o-Y) to USD 1.9 billion, down from USD 2.8 billion funding garnered in 2023.
- The report highlighted that this decline in fintech industry is mainly driven by a wider slowdown in demand and geopolitical headwinds.
- As per the report, the United States of America (USA) topped the ranking globally, followed by the United Kingdom (UK) which secured 2nd position.
Highlights of the Report:
i.The report highlighted that fintech sector received highest funding of USD 805 million during the 3rd quarter (Q3) of 2024, which was 61% higher than on a Year-over-Year (Y-o-Y) basis.
- In addition to it, 59% of the total funding in 2024 was garnered during the second half (H2) of the year.
- As per the report, August emerged as the most robust month for funding in 2024, contributing USD 434 million to total funding of USD 1.9 billion.
Top Investing Companies in Fintech Sector in 2024:
i.Top 3 Indian cities which emerged as hub for fintech funding in 2024: Bengaluru (Karnataka), Mumbai (Maharashtra) and Delhi (Delhi).
ii.Top 3 Investing Companies: Karnataka-based Peak XV Partners, LetsVenture Technologies Private Limited based in Bengaluru, Karnataka, and California (the United States of America, USA)-based Y Combinator, LLC.
iii.Top 3 companies in Seed Investments: Mumbai(Maharashtra)-based Venture Catalysts Private Limited, Y Combinator LLC, and Singapore-based Antler.
iv.Top 3 companies in Early-Stage Funding: Gurugram (Haryana)-based Elevation Capital, Tokyo(Japan)-based GMO VenturePartners, Inc. and Peak XV Partners.
v.Top 3 companies in Late-Stage Funding: Karnataka-based Creaegis Investment Advisers Private Limited, USA-based The Rise Fund, and Amara Partners.
Unicorns and IPOs Emerged in 2024:
i.As per the report, Bengaluru (Karnataka)-based Money View and Fintech-focussed Software as a Service (SaaS) company, Perfios emerged as Unicorns in 2024 compared to single unicorn in 2023.
- This year, only 3 USD 100 million plus funding rounds recorded, registering a decrease of 50% from 6 such rounds in 2023. The notable deals in 2024 included DMI Finance raising USD 334 million funding led by Mitsubishi UFJ Financial Group (MUFG).
ii.The fintech sector recorded 8 Initial Public Offerings (IPOs) in 2024, which marks an increase of 300% compared to the 2 IPOs in 2023.
Key Findings of the Report:
ii.The report showed that Early-stage funding rounds registered a 16% decrease Y-o-Y, from USD 667 million (in 2023) to USD 562 million (in 2024) and a70% decline compared to USD 1.9 billion recorded in 2022.
- Also, Seed-stage funding saw a decline of 19% Y-o-Y, from USD 219 million (in 2023) to USD 178 million (in 2024) and 66% from USD 529 million in 2022.
iii.Mergers and Acquisition activity in India saw a marginal decrease of 16%, from 31 acquisitions recorded (in 2023) to 26 (in 2024).
iv.As per the report, Payment segment witnessed significant decrease of 77%, from USD 836 million (in 2023) and 81% decrease from USD 1.01 billion (in 2022) to USD 194 million (2024).
- Investment Tech Segment raised USD 320 million in funding in 2024, registering a decrease of 11% compared to USD 358 million secured in 2023.
v.The report showed that digital lending solutions received maximum funding in 2024, accounting 64% of the total funding raised during 2024.
About Tracxn Technologies Limited:
Managing Director (MD) and Chairperson- Neha Singh
Headquarters- Bengaluru, Karnataka
