Indian fintech sector: A resilient green shoot of the start-up ecosystem

India maintained its position as the third-highest funded fintech industry globally, following the US and UK, similar to last year

The funding winter has dealt a blow to startups across the board, but Indian fintech is a sector that has withstood the conditions.

While investors have begun to hedge their bets, companies have managed to demonstrate a clear path to profitability that has given the sector an edge. Regulatory certainty, increasing scale and rising digital payments have also allowed the space to mature faster than others.

Despite a 67 per cent year-on-year (YoY) funding decline in fintech in the first half (H1) of 2023 — in line with the overall startup ecosystem — investments on a sequential basis have slipped