 "Fintech")
Indian fintechs scooped up $436 million in the third quarter of the calender year, a 68 per cent rise compared to $259 million raised in the previous quarter, according to a report by Tracxn.
On a year-on-year (Y-o-Y) basis though, funding has slumped 55 per cent from $967 million raised in Q3CY22. The report said funding in fintechs has grown on the back of an increase in the funding in late-stage rounds.
Also Read
Late-stage rounds in Q3CY23 recorded a 141 per cent increase to $326 million compared to $135 million in the previous quarter. These rounds saw a 31 per cent (Y-o-Y) decline compared to the $471 million raised in Q3CY22.
The number of funding rounds have also slumped 78.6 per cent Y-o-Y from 103 in Q3CY22 to 22 in Q3CY23. According to the report, there were 35 rounds of funding in Q2CY23.
Of the 22 funding rounds recorded in Q3CY23, 11 were seed rounds, seven were early stage, and four were late stage rounds. The quarter registered two IPOs, Zaggle and Veefin, compared to only one in the same quarter last year.
"In a time of global economic uncertainty, India's FinTech sector has demonstrated exceptional resilience and growth. Tracxn's Q3 2023 report sheds light on a pivotal period where our FinTech startups exhibited a remarkable 68% increase in funding compared to Q2 2023. This surge reflects the industry's dynamism and innovation, positioning India as a leading global FinTech player," said Neha Singh, co-founder at Tracxn.
