India's fintech funding drops 33% in 2024

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India ranks 3rd globally in terms of fintech funding received in 2024, trailing behind the U.S. and U.K.
India's fintech funding drops 33% in 2024
Two companies, Money View and Perfios, became unicorns in 2024. 

India's fintech sector secured $1.9 billion in funding in 2024, marking a 33% decline from $2.8 billion in 2023, according to a report by private market research firm Tracxn.

Yet, India ranked 3rd globally in terms of fintech funding received in 2024, trailing behind the U.S. and U.K.

Eight companies from the sector went public this year, up from two in 2023. Two companies, Money View and Perfios, became unicorns in 2024. Bengaluru, Mumbai, and Delhi were the top three funded cities.

Almost 60% of the sector's funding was raised only in the second half of 2024, with the third quarter, between July and September, recording the highest-funded quarter, as $805 million was raised. Almost half of this third-quarter funding was raised within August, contributing $434 million to the annual total.

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Payment tech companies faced the sharpest decline, raising just $194 million, a 77% drop from $836 million in 2023. In contrast, investment tech experienced a comparatively moderate decline of 11%, securing $320 million compared to $358 million last year. The alternative lending segment attracted $1.21 billion, a modest 4% decline from $1.26 billion in 2023.

Amid the overall downturn, digital lending solutions led the way, accounting for 64% of the total funding raised by the overall fintech sector. DMI Finance, a consumer and SME loan provider, secured $334 million in Series E funding from MUFG, marking the highest funding round in 2024. Credit Saison, an online consumer and business loan marketplace, followed with $144 million raised in a Series D round.

Seed-stage funding fell by 19% from 2023 to $178 million in 2024, while early-stage rounds recorded $562 million, down 16% from 2023. Late-stage funding witnessed the largest value drop, falling 42% to $1.1 billion compared to $1.9 billion in 2023 and 65% from $3.1 billion in 2022.

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