India’s fintech startups have raised $795 million in VC funding during the first half (H1) of 2024, marking an 11 percent decline from the second half (H2) of 2023.
The VC funding by India’s fintech startups in the first half of 2024 has ranked India among the top three VC funded markets alongside the US and the UK, according to a report released by Tracxn on Friday.
In H1 2024, Perfios emerged as the only new unicorn.
The fintech sector in India saw six acquisitions and five initial public offerings (IPOs). Bengaluru led the country in total fintech funding raised, followed by Mumbai and Pune, highlighting the rise of multiple fintech hubs within India’s diverse startup ecosystem.
“Despite the funding slowdown, India’s fintech ecosystem shows agility and adaptability, supported by robust economic fundamentals,” said Neha Singh, Co-Founder of Tracxn. She expressed optimism about the future, noting that “a supportive policy environment and technological advancements will create new opportunities for growth and innovation in the near future.”
The report highlighted that late-stage funding in H1 2024 reached $551 million, a 26 percent increase from $436 million in H2 2023. Seed-stage funding also saw an uptick, amounting to $65 million, a 7.4 percent rise from $60.5 million in the previous half-year period.
Peak XV Partners, Y Combinator, and LetsVenture were identified as the leading investors in India’s fintech sector.
