Indian fintech startups secured $1.9 billion in funding during 2024, reflecting a 33% decrease from the $2.8 billion raised in the previous year, as reported in Tracxn’s annual Fintech Report. Despite this reduction, India maintained its ranking as the third-largest fintech funding hub in the world, following the United States and the United Kingdom. In 2022, Indian fintech firms had achieved an impressive $5.6 billion in fundraising.
Highlights
Key Highlights of Fintech Funding in 2024
– The third quarter of 2024 proved to be particularly strong, with $805 million raised, accounting for 42% of the total funding for the year.
– August stood out as the most productive month, contributing $434 million to the annual figure.
– However, only three funding rounds surpassed $100 million, a decrease from six in 2023.
Major Funding Deals
Among the significant transactions, DMI Finance topped the list with a remarkable $334 million in Series E funding, supported by MUFG. Following this, Credit Saison, an online lending marketplace, secured $144 million in Series D financing.
Funding Distribution by Sector
Digital lending emerged as the dominant sector, accounting for 64% of total funding and facilitating financial inclusion across urban and rural landscapes.
– Alternative lending attracted $1.21 billion, showing a slight 4% decline from 2023.
– Investment technology raised $320 million, representing an 11% decrease from the previous year.
– The payments sector experienced a significant drop, collecting only $194 million compared to $836 million in 2023.
Leading Investors
The top investors included Peak XV Partners, LetsVenture, and Y Combinator. Furthermore, Elevation Capital, GMO Venture Partners, and Peak XV excelled in early-stage investments, while late-stage funding leaders comprised Creaegis, The Rise Fund, and Amara Partners.
Regional Funding Insights
Bengaluru continued to be the hub of fintech activity, followed by Mumbai and Delhi.
– Bengaluru-based fintech companies attracted $524 million, accounting for 41% of the overall funding.
– Mumbai secured $440 million, benefiting from its strong banking and financial services sector.
– Fintech startups in the Delhi-NCR area raised $547.5 million, primarily driven by digital lending and payment solution firms.
– Other cities, such as Pune and Hyderabad, collectively amassed $352.9 million in funding.
