India ranks third in global fintech funding despite 33% drop in 2024: Report

India secured the third position globally in fintech funding despite a 33% decline in YoY funding, which dropped to Rs. 16,475 crore (US$ 1.9 billion) in 2024, according to Tracxn's Annual India Fintech Report. This reduction in funding reflects a broader slowdown in demand and ongoing geopolitical challenges. The fintech sector had raised Rs. 24,279 crore (US$ 2.8 billion) in 2023 and Rs. 48,558 crore (US$ 5.6 billion) in 2022, underlining a significant decline over the past two years. Despite this, India remains one of the top three globally funded fintech ecosystems, only trailing the US and the UK.

Noteworthy developments include two new unicorns, Money View and Perfios, compared to just one in 2023. The fintech sector saw a late-year recovery, with Q3 raising the highest funding of Rs. 6,980.16 crore (US$ 805 million), a 61% increase from the previous year. Digital lending dominated the funding, comprising 64% of the total raised. However, late-stage funding saw a sharp 42% decline, dropping to Rs. 9,538 crore (US$ 1.1 billion) from Rs. 16,475 crore (US$ 1.9 billion) in 2023. Early-stage and seed-stage funding also experienced downturns. Despite these challenges, the sector showcased resilience, with eight IPOs in 2024, a 300% increase from 2023. Bengaluru remained the leading hub for fintech funding, followed by Mumbai and Delhi. The sector's robust performance, particularly in the H2 FY24, positions it for continued growth in the future.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.