Indian Fintech Sector Ranks as 3rd Largest Globally Funded Ecosystem, Secures $1.9 Billion in 2024
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Bengaluru, Jan 13 (NationPress) The Indian fintech sector has successfully raised $1.9 billion in 2024, ensuring its status as one of the leading globally funded fintech ecosystems, trailing only the United States and United Kingdom, according to a report issued on Monday.
The third quarter (Q3) proved to be the most lucrative period of the year, with $805 million raised — representing a remarkable 61 percent increase compared to Q3 2023, based on the findings from Tracxn, a prominent market intelligence firm.
Moreover, 59 percent of the overall funding was accumulated in the latter half of the year, signaling a recovery towards the end of the year. August was identified as the peak month for funding, contributing $434 million to the annual total.
“In spite of the global funding downturn, India’s fintech ecosystem continues to exhibit extraordinary resilience and adaptability. The rise of two new unicorns and a record eight IPOs in 2024 highlight the sector’s capability to flourish amidst challenges,” stated Neha Singh, Co-founder at Tracxn.
The year also recorded 26 acquisitions, along with eight IPOs and two unicorns.
“Looking ahead, the sector is set to build upon these achievements, fostering financial inclusion and innovation while reinforcing its status as a global frontrunner in the fintech domain,” added Singh.
The funding scenario in 2024 experienced a notable transformation, with three funding rounds exceeding $100 million.
Digital lending solutions comprised 64 percent of the total funds raised throughout the year. The investment technology segment attracted $320 million in funding.
Bengaluru retained its position as the foremost hub for fintech funding in 2024, followed by Mumbai and Delhi.
Regulatory advancements also played an essential role in influencing the fintech environment this year.
In August, the Reserve Bank of India (RBI) conferred Self-Regulatory Organisation (SRO) status to the Fintech Association for Consumer Empowerment (FACE), an industry body that represents roughly 80 percent of digital lending volumes in the nation.
