Fundraising by fintechs took a hit due to Covid-19 pandemic, lockdown

According to the RBI, banks, which earlier viewed fintechs as disruptive forces, are looking at them as enablers in banking and finance

Indian fintechs raised around $3.18 billion in equity funding in 2019-20 but the fundraising activity slowed after the spread of Covid-19 and the subsequent nationwide lockdown, shows the data compiled by the Reserve Bank of India. In April- June of FY21, Indian FinTechs have raised over $200 million.

The distribution of the funding of $3.18 billion raised during 2019-20 was highly skewed with the top 10 companies (by equity funding) accounting for approximately two-thirds of the total funding, the RBI said. Paytm raised around $1 billion in November 2019, which accounted for almost a third of the entire year’s fintech funding.

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