Fintech funding in Jan-March down 57% year on year, but up 59% from last quarter

economictimes.indiatimes.com:

Funding among Indian fintech startups has dropped 57% year on year to $551 million in the first three months of 2024, compared to $1.3 billion raised in the same period last year, according to the Fintech India report released by data intelligence platform Tracxn on Friday.

However, despite the year-on-year decline, there was a 59% rise in fintech funding from the previous quarter (October to December 2023).

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Funding during the January-March quarter dried up year on year across stages, with seed stage down 77% to $9.9 million, early stage down 42% to $147 million and late stage falling 60% to $394 million, compared to the previous year. On a quarterly basis though, funding improved.

Further, the report noted that sectors including alternative lending, regtech, and banking tech emerged as top performers in Q1 2024. Alternative lending received $491 million in funding, accounting for almost 89% of the total funding witnessed in the fintech space.
It marked a growth of 290% compared to the $126 million raised in the December quarter of last year. Regtech followed this with $107 million, while banking tech received $85.8 million.

Some of the large rounds in fintechs were reported in lending company Avanse, B2B banking SaaS