FinTech startup funding drops 57% between Jan-March this year amid Paytm crisis
Investors keep the faith in Indian social startups, eye GenAI models Among the FinTech sector, the 'Alternative Lending' segment accounted for almost 89% of the total funding in the first three months of 2024. The 'Alternative Lending' firms clocked $491 million during this period, Tracxn mentioned. Credit Saison emerged as the top-funded company in the 'Alternative Lending' segment, receiving $144 million in a Series D round in Q1 2024.
RegTech segment secured $107 million of funding, and Banking Tech received $85.8 million in the same period. Perfios, a RegTech firm raised $80 million from Teachers' Venture Growth and entered the unicorn club (Valuation above $1 billion). VCs focus on ESG norms, not just ‘financial parameters’ for startup funding Tracxn report mentioned that India bagged the third rank in terms of funding raised for the FinTech sector in the first quarter of the current calendar year.
"Our Q1 2024 findings emphasize the sector’s innovative capabilities and its potential to drive India's economic expansion. The sustained investor interest emphasizes the importance of nurturing startups and R&D, aligning with the Startup India Initiative," Neha Singh, Co-Founder of Tracxn told Mint. Among Indian cities, investors pumped in $247 million in Bengaluru-based Fintech companies in Q1 this year, followed by Mumbai ($194 million) and Hyderabad ($75 million), respectively.
In charts: Summer is here, but for India’s startups, funding winter is still on Peak XV Partners, Y Combinator, and LetsVenture were the all-time top investors in the space. The quarter also saw four acquisitions in the FinTech space of which the notable was Difenz acquiring Signzy for $5 million. The other acquisitions were Cred acquired
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