Fintech Sector Sees Drop in Investments for April

The first month of the new financial year concluded with a notable decrease in investments within the fintech sector compared to recent months. Fintech funding experienced a decline in April, totaling around USD 320.7 million from 15 funding rounds, down from USD 591 million across 16 rounds the previous month.

Leading the funding rounds in April was fintech company Angel One, securing approximately USD 179.8 million from Goldman Sachs, as reported by 1Lattice.

Other significant fundings included Electronica Finance, raising about USD 48 million from LeapFrog Investments and Aavishkaar Capital. Additionally, fintechs such as Ring, Uniqus, and Aviom raised USD 12 million, USD 10 million, and USD 10 million, respectively, according to the data.

Reflecting on the past year, the fintech sector raised USD 2 billion in 2023, a significant decline compared to previous years, with USD 5.4 billion in 2022 and USD 8.4 billion in 2021. Despite this trend, India ranked 3rd globally in fintech startup funding in 2023, highlighting its continued significance on the global stage.

In 2024, the sector has raised USD 1599.7 million collectively in the first four months (Jan-Apr). Notably, payments giant PhonePe secured the highest funding in CY23, raising a total of USD 850 million from January to May.

The latest data underscores a broader downward trend in fintech funding, aligning with global patterns across various sectors. The April funding rounds, totaling USD 320 million, highlight key players in the fintech sector amid evolving market conditions, as analyzed by 1Lattice.