According to a survey released on Friday, India’s fintech ecosystem reached a noteworthy milestone in the first half of this year by becoming among the top three funded countries worldwide, along with the US and the UK.
The first half (H1) of 2024 saw funding for the domestic fintech sector drop by 11% from H2 2023 to $795 million, according to a research by market intelligence platform Tracxn.
The fintech industry experienced six acquisitions and five initial public offerings (IPOs) between January and June of 2024, with Perfios being the lone unicorn founded.
The country’s varied startup ecosystem saw the rise of several fintech hotspots, with Bengaluru emerging as the leader in total fintech capital raised in 2024, followed by Mumbai and Pune.
Neha Singh, co-founder of Tracxn, stated, “India’s FinTech ecosystem shows agility and adaptability, supported by robust economic fundamentals, despite the global funding slowdown.”
“We are optimistic that a supportive policy environment and technological advancements will create new opportunities for growth and innovation in the near future,” she continued, noting that the fintech industry is still vibrant.
Funding for the late stages was $551 million in H1 2024, up 26% from $436 million in H2 2023.
According to the study, seed-stage funding reached $65 million, up 7.4% from $60.5 million in H2 2023.
As the top investors in the space, Y Combinator, LetsVenture, and Peak XV Partners emerged.
