Fintech Sector Sees Surge in Investments as March Concludes

The last month of the new calendar year closed with a significant rise in investments for the fintech sector compared to the previous few months. FinTech funding has witnessed an uptick in the month of March — recording about USD 591 million from 16 funding rounds compared to USD 250.25 million from 13 rounds in the previous month.

The highest amount raised in March was by fintech company Svatantra Microfinance, which secured approximately USD 230 million. This investment came from Advent International and Multiples, according to the latest data from 1Lattice.

Following Svatantra Microfinance, Avanse raised about USD 120 million from Mubadala Investment Company and Avendus PE Investment Advisors. Other notable fund raises included Perfios with USD 80 million, mPokket with USD 60 million, and IDfy with USD 27 million. In the year 2021, the FinTech sector raised a total of USD 7.475 billion, followed by USD 4.041 billion in 2022. However, funding decreased to about USD 2.982 billion in the calendar year 2023. In CY24, a total of USD 1.279 billion has been raised in the first three months (Jan, Feb & Mar’24).

PhonePe was the highest raiser in CY23, collecting USD 850 million from January to May, with USD 350 million in January alone.

India ranked 3rd globally in 2023 in terms of FinTech startup funding, according to a report by Tracxn, solidifying its position as a significant player on the global stage.

Despite this positive trend, funding in the FinTech space has been decreasing both in India and globally. The sector received USD 2 billion in 2023, marking a 63 per cent and 76 per cent decline compared to the previous years of USD 5.4 billion in 2022 and USD 8.4 billion in 2021, respectively.