India’s Fintech Sector Sees Funding Slump in H1 2024

India's fintech sector received $795 million in funding in H1 2024, a decline of 11% and 59% compared to H2 2023 and H1 2023, respectively.

  • India’s fintech sector received $795 million in funding in H1 2024, a decline of 11% and 59% compared to H2 2023 and H1 2023, respectively.
  • Despite the decline, India’s fintech ecosystem ranked among the top three funded globally, alongside the US and UK.
  • Alternative lending, RegTech, and BankingTech were the top-performing segments in the Indian fintech sector.

India’s fintech sector has experienced a significant decline in funding in the first half of 2024, according to a report by Tracxn. The sector received $795 million in funding, a drop of 11% and 59% compared to the second half of 2023 and the first half of 2023, respectively. Despite this decline, India’s fintech ecosystem has achieved a significant milestone by ranking among the top three funded globally, alongside the US and UK.
The decline in funding is attributed to the global slowdown and geopolitical tensions. However, the alternative lending segment has shown resilience, securing $646 million in funding, which accounts for 81% of the total funding in the Indian fintech space. RegTech and BankingTech were the other top-performing segments in the Indian fintech sector.
The report also highlights that Bengaluru, Mumbai, and Pune were the leading cities in terms of fintech funding, with Peak XV Partners, Y Combinator, and LetsVenture emerging as the top investors in the sector. Despite the challenges, the Indian fintech ecosystem is expected to remain dynamic, with a supportive policy environment and technological advancements creating new opportunities for growth and innovation.
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