Fintech funding down 59% to $795 million in H1 2024: Tracxn report

But India's fintech funding market continued to remain amongst the top three globally

Indian fintech companies saw a sharp 59 per cent drop in funding in the first half of calendar year 2024 (H1 2024), when pitted against the same period of 2023 (H1 2023).

Funding to fintech firms in H1 2024 was pegged at $795 million, 59 per cent less than $1.93 billion raised in H1 2023.

Sequentially, too, the funding was down 11 per cent from $896.7 million the sector raised in H2 2023, according to data from market intelligence platform Tracxn’s Geo Annual India Fintech Report H1 2024. 

The number of funding rounds have shrunk sharply from 140 in H1 2023 to 91 rounds in H1 2024. Sequentially too, funding rounds have reduced from 113 in H2 2023. 

But despite a contraction in funding, the country’s fintech funding market continued to remain amongst the top three globally after the United States of America (USA) and the United Kingdom (UK). 

Top funding rounds included $144 million raised by financial services company Credit Saison in a series D round, and educational loans platform Avanse raising a series C round of $120 million.

Perfios, which was the only unicorn in H1 2024, raised $80 million in a series D funding round. 

The fintech sector saw five companies listing themselves on the bourses during H1 2024, as compared to no (zero) IPOs in H1 2023.

Acquisitions were down to six from 18 during the same time respectively. Major investors leading investments in fintechs include Peak XV Partners, Y Combinator, and LetsVenture. 

Venture Catalysts, Y Combinator, and BeeNext led the seed investments; Peak XV Partners, Sorin, and Quona were prominent investors in early-stage investments; and Epiq Capital Advisors, UC-RNT Fund, and Amara Partners were the leading late-stage investors in H1 2024.

“Despite the global funding slowdown, India’s fintech ecosystem shows agility and adaptability, supported by robust economic fundamentals. The slowdown in funding reflects the need for a cautious outlook and strategic planning among startups and investors,” said Neha Singh, co-founder, Tracxn.