Despite reduced funding, India’s fintech sector ranks 3rd in globe in terms of fund infusion: Report

Funds raised by sector sees a decline of 33 per cent on a year-over-year basis to $1.9 billion in 2024

New Delhi: India ranked third globally in terms of funding received in the fintech segment despite a decline of 33 per cent on a year-over-year basis to $1.9 billion in 2024, market intelligence firm Tracxn said in a report on Monday.

The sector witnessed a decline in funding, driven by a broader slowdown in demand and geopolitical headwinds, Tracxn’s Annual India fintech report 2024 said.

---

“The fintech sector experienced a notable decline in funding in 2024, with a total of $1.9 billion raised. This represents a 33 per cent decrease from the $2.8 billion secured in 2023. The Indian fintech ecosystem has solidified its position as one of the top three globally funded fintech ecosystems in 2024, trailing only the US and the UK,” the report said.

The sector had raised $5.6 billion in 2022.

The highest funding of $805 during 2024 was received by the sector in the third quarter which was 61 per cent higher on a year-over-year (Y-o-Y) basis.

Additionally, 59 per cent of the total funding in 2024 was secured during the second half of the year, indicating a late-year recovery while August emerged as the most robust month for funding, contributing $434 million to the annual total.

“Despite the global funding slowdown, India’s fintech ecosystem continues to demonstrate remarkable resilience and adaptability. The emergence of two new unicorns and a record eight IPOs in 2024 underscore the sector’s ability to thrive amidst challenges,” Tracxn, Co-Founder, Neha Singh said.

“As we look to the future, the sector is poised to build on these successes, driving financial inclusion and innovation while solidifying its position as a global leader in the fintech space,” Singh said.

The year 2024 witnessed the emergence of two unicorns, Money View and Perfios, compared to a single unicorn in 2023 though there were only three $100 million-plus funding rounds recorded, marking a 50 per cent decline from the six such rounds in 2023.