Financial tech startups in India raised $5.65 billion in 390 rounds last year, registering 47 percent drop in terms of funding amount and 29 percent in the number of rounds when compared with 2021.
This drop in funding can be attributed to the decline in late-stage funding from $8.3 billion in 2021 to $3.7 billion in 2022, a drop of 56 percent, according to data provided by global software-as-a-service (SaaS)-based market intelligence platform Tracxn.
Fintech startups recorded 13 funding rounds of $100 million+ in value, registering drop of 50 percent, from 26 rounds in 2021.
Y Combinator, Tiger Global Management and Lets Venture were the most active investors in the financial tech space, with more than 20 investments in 2022.
Four startups in India’s fintech sector received unicorn status in 2022, far lower compared with 13 new Unicorns in 2021.
India is the third-highest funded country in terms of funding received in the financial tech sector, only behind the US and the UK.