India maintained its position as the third-largest global fintech funding recipient in 2024, despite a 33% year-over-year decline, with total funding reaching $1.9 billion, according to Tracxn’s Annual India Fintech Report. This marks a significant drop compared to $2.8 billion in 2023 and $5.6 billion in 2022, reflecting the sector’s challenges amid global geopolitical tensions and reduced demand.
Despite the downturn, India’s fintech ecosystem remains among the world’s top three, following the US and the UK. The year saw the emergence of two new unicorns, Money View and Perfios, surpassing the single unicorn reported in 2023. A notable recovery occurred in Q3, with funding reaching $805 million, a 61% increase from the same period in the previous year.
Digital lending led the way, accounting for 64% of the total funding raised. However, late-stage investments suffered a significant decline, dropping 42% year-over-year to $1.1 billion from $1.9 billion in 2023. Early and seed-stage funding also experienced reductions.
Amid these challenges, the sector displayed resilience with eight initial public offerings (IPOs) in 2024, marking a substantial 300% increase from the previous year. Bengaluru remained the epicenter of fintech funding, followed by Mumbai and Delhi.
The strong performance in the latter half of FY24 suggests promising growth prospects for India’s fintech sector, emphasizing its adaptability in a challenging global economic climate.
