Fintech sector witnesses 33% fall in funding at $1.9 billion in 2024

The funding landscape in 2024 saw a significant shift, with only three $100 million-plus funding rounds recorded, marking a 50% decline from the six such rounds in 2023.
Fintech sector witnesses 33% fall 
in funding at $1.9 billion in 2024
Updated on
2 min read

BENGALURU: Though the country’s fintech ecosystem is considered one of the top three globally funded sectors in 2024, after the US and the UK, it managed to raise only $1.9 billion in 2024, which is a 33% drop compared to $2.8 billion secured in 2023 and a 66% decline from $5.6 billion raised in 2022, according to data shared by market intelligence platform Tracxn.

The funding landscape in 2024 saw a significant shift, with only three $100 million-plus funding rounds recorded, marking a 50% decline from the six such rounds in 2023. Some of the notable deals in 2024 included DMI Finance’s $334 million funding led by MUFG, and Credit Saison’s, an online marketplace for consumer and business loans, $144 million in a Series D funding round.

The downturn was evident across all funding stages, with late-stage rounds being the most affected. Late-stage funding amounted to $1.1 billion, marking a 42% reduction compared to $1.9 billion raised in 2023 and a 65% decline from $3.1 billion in 2022. Early-stage rounds followed a similar trend, recording $562 million in funding in 2024. This is a 16% drop from $667 million raised in 2023 and a 70% decline from $1.9 billion in 2022. Seed-stage funding also faced challenges, reaching $178 million in 2024—down 19% from $219 million in 2023 and 66% from $529 million in 2022.

Neha Singh, co-founder at Tracxn, said, “The emergence of two new unicorns and a record eight IPOs in 2024 underscore the sector’s ability to thrive amidst challenges. As we look to the future, the sector is poised to build on these successes, driving financial inclusion and innovation while solidifying its position as a global leader in the Fintech space.”

M&A activity too saw a dip, with 26 acquisitions recorded in 2024, down 16% from 31 in 2023. The $94.5 million acquisition of PureSoftware, an omnichannel banking solutions provider, by Happiest Minds is one of the notable transactions. The sector also witnessed eight IPOs in 2024, a 300% increase compared to the two IPOs in 2023.

As far as cities are concerned, according to the report, Bengaluru is the top hub for fintech funding in 2024, followed by Mumbai and Delhi.

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