Indian fintech startup funding surges 59% in Q1 CY2024: Tracxn report

Funding among Indian fintech startups surged 59 per cent quarter-on-quarter (Q-o-Q) to $551 million in the first quarter (Q1) of calendar year (CY) 2024, up from $346 million in the previous quarter, according to a report by market intelligence platform Tracxn.
 
On a year-on-year (Y-o-Y) basis, the funding continued to be slow. On a Y-o-Y basis, funding was down 57 per cent from the $1.3 billion fintech startups raised in the year-ago period.
 
Regardless, India ranked third globally in terms of funding raised by fintech companies, behind the US and China, the report said.
 
“Our Q1 2024 findings emphasize the sector’s innovative capabilities and its potential to drive India's economic expansion. The sustained investor interest emphasizes the importance of nurturing startups and R&D, aligning with the Startup India Initiative. This surge reflects the industry's dynamism and innovation, positioning India as a leading global fintech player,” said Neha Singh, founder, Tracxn.

QoQ funding trends for Indian fintech startups

Period	Funding Amount ($mn)	No. of Deals
Q1 2024	550.8	33
Q4 2023	346.7	53
Q3 2023	476.6	33
Q2 2023	138.5	38
Q1 2023	1300	56

Top fintech funding rounds in Q1 2024

Company	Funding Amount ($mn)
Credit Saison	144
Avanse	120
Perfios	80
Vivifi India Finance	75
Idfy	27

City-wise Fintech Funding Trends - Q1 CY2024

Top 5 cities	Funding Percentage
Bengaluru	44%
Mumbai	35%
Hyderabad	13%
Gurgaon	3%
Noida	2%

Source: Tracxn