Decline in FinTech Funding Marks December with USD 96 Million Raised

In the month of December, FinTech funding in India witnessed a decline, recording approximately USD 96 million from 10 deals, compared to the previous month’s USD 122 million from 10 deals. Leading the funding charts was InCred, securing a noteworthy USD 60 million, with Varanium Capital Advisors and Sattva Group as major contributors, according to the latest data from 1Lattice.

Following closely, RevFin raised USD 14 million from Omidyar Network, while FinTechs like Escrowpay, DGV, and Navadhan Capital secured USD 6 million, USD 7 million, and USD 5 million, respectively.

The FinTech sector in India raised a total of USD 7475 million in 2021, showing a decline from USD 4041 million in the previous year, and the year-to-date figures for 2023 stand at USD 2982 million.

In 2023, PhonePe led the funding charts, raising USD 850 million from January to May. Despite a global downward trend, a Tracxn report revealed that India secured the 3rd position globally in FinTech startup funding in 2023.

However, the FinTech sector faced a 63% and 76% decline in funding compared to the previous years, with USD 2 billion raised in 2023, in contrast to USD 5.4 billion in 2022 and USD 8.4 billion in 2021.

As funding in the FinTech space experiences a dip globally, the top funding rounds for December, totalling USD 96 million, emphasize the evolving landscape in India’s FinTech sector, as per data collated by 1Lattice.