Comments
The fintech sector continues its upward trajectory, securing $778 million in funding during Q3 2024, marking a 66per cent year-on-year (YoY) increase from the $471 million raised in Q3 2023, and a 165per cent surge from the $293 million raised in Q2 2024, according to Tracxn’s latest report.
India ranks second globally in fintech funding for Q3 2024, trailing only the US , according to the report. The surge in investment is attributed to favourable government policies, including the promotion of digital payments through UPI, which processed over 14 billion transactions in May 2024.
Top-performing sectors in Q3 2024 included alternative lending, investment tech and payments. The Alternative Lending segment raised $517 million, a 49per cent increase from Q3 2023 and a staggering 199per cent growth from Q2 2024. Investment Tech saw a decline, securing $109 million, down 58per cent YoY , but still showing a 356per cent growth compared to the previous quarter. Payments recorded $93 million in funding for the quarter.
However, fintech acquisitions in India declined, with only four acquisitions in Q3 2024, marking a 50per cent drop from the eight recorded in Q3 2023. Notably, payment solution company Ijeeva was acquired by FinFusion Solutions during this period.
Major investors such as Peak XV Partners, Y Combinator, and Elevation Capital continue to back India’s rapidly growing FinTech space, signalling sustained growth and innovation in the sector.
Commenting on the insights, Neha Singh, Co-Founder of Tracxn, said: “The resurgence in funding for the Indian fintech industry signifies a pivotal moment in our journey towards becoming a global FinTech hub. With rising digital adoption and supportive government policies, we are positioned for sustained growth. Our report highlights not just funding numbers but the enduring potential of Indian start-ups to redefine the future of finance.”
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.