Funding in Indian fintech down 40% in 2022, says IIFL Fintech report

The country has over 9,500 fintech companies operating in the country

The Indian fintech sector has grown rapidly in recent years, with total funding touching $39 billion in 2022.

However, funding declined by 40 per cent in 2022, due to a number of factors.

These include the global economic slowdown and the war in Ukraine, said an IIFL Fintech Report.

In FY22, the sector saw 476 fintech deals and secured funding worth $6 billion. This was in the backdrop of a funding winter in the start-up world.  

With over 9,500 fintech companies operating in the county, India is ranked third after the US (31,950) and UK (12,787) in terms of the number of fintech firms, according to data from the IIFL Fintech report published on Tuesday. 

The Indian fintech market is anticipated to surpass $1 trillion in assets under management (AUM) by 2030.

The report estimates that the AUM for digital payments ($106 billion), digital lending ($515 billion), wealthtech ($237 billion), insuretech ($88 billion), and neo-banking ($215 billion) will contribute to this growth.  

Fintech sub-domains such as payments, lending, investment tech, insurance tech and neo-banking saw the highest amount of funding during the same period.

Companies such as Paytm, Cred, PhonePe, Pine Labs and Razorpay claimed the top spots in terms of funding in the fintech sector.