look news india
New Delhi: Fintech companies have witnessed a sharp drop in funding in the first half of calendar year 2024 as compared to the first half of 2023. Investments in fintech companies in the first half of calendar year 2024 stood at $795 million, a 59 per cent drop from the $1.93 billion capital the sector received in the first half of 2023.
Investments in the fintech sector also fell 11 per cent year-on-year to $896.7 million in the second half of 2023, according to data from market intelligence platform Tracxn.
The number of funding rounds dropped from 140 rounds in H1 2023 to 91 in H1 2024. Even on a half-yearly basis, funding rounds fell from 113 in H2 2023. Despite the lack of funding, the country’s fintech funding market is in the top-3 in global rankings along with the US and the UK.
Key funding rounds include financial services company Credit Saison raising $144 million in a Series D round, and education loan platform Avans raising $120 million in a Series B round.
The fintech sector saw five companies listing in the first half of 2024, while there were no IPOs in the first half of 2023. The number of acquisitions also declined from 18 to 6 during this period.
Despite the slowdown in global funding, India's fintech ecosystem is witnessing activity and positive changes. The slowdown in funding reflects the need for a cautious approach and strategic planning among startups and investors.
