At $1.9 billion, Fintech funding declines for third year in a row

The sector raised a high of $8.3 billion in 2021 across 665 funding rounds

Funding in India’s fintech sector contracted for a third consecutive year, with the sector raising $1.9 billion in 2024, according to data from market intelligence platform Tracxn.

 

This marks a 32 per cent decline from the $2.8 billion raised in 2023. The number of funding rounds also hit an eight-year low, with 228 rounds in 2024 compared to 324 in 2023. The sector peaked in 2021, raising $8.3 billion across 665 rounds. 

“Funding has been witnessing a declining trend similar to the global equivalents. This decline can be attributed to the overall slowdown in demand on a global scale and other geo-political headwinds,” Tracxn said.  

Late-stage firms led the funding activity last year, securing $1.1 billion across 33 rounds. Early-stage companies raised $562 million across 64 rounds, while seed-stage startups garnered $178 million in 131 rounds. 

Over one-third of the total funding was concentrated in the top three companies.  

Consumer and SME loan platform DMI Finance raised $334 million in a Series E round, followed by consumer and business loans provider Credit Saison’s Series D at $144 million. B2B supply chain financing platform Mintifi’s $100 million in a Series E round. 

Eight fintechs went public in 2024, up from two in 2023. However, acquisitions saw a slight dip, with 26 deals compared to 31 in 2023.