ENA Sectors 2024-10-16 16:20:40 <p><span style="font-size:14px"><strong>New Delhi, Oct 16 (KNN)</strong> Indias fintech ecosystem is experiencing a significant resurgence, posting a 66 per cent year-on-year (YoY) growth in funding to USD 778 million in Q3 2024, according to the latest report by Tracxn.</span></p> <p><span style="font-size:14px">This is a notable leap from the USD 471 million raised during the same period in 2023, highlighting renewed investor confidence in the sector.</span></p> <p><span style="font-size:14px">The report underscores Indias emerging influence, stating, India ranks 4th in all-time funding for the fintech sector, behind the US, China, and the UK. However, in Q3 2024, India surged to the 2nd position globally in quarterly funding, only behind the United States.</span></p> <p><span style="font-size:14px">The momentum was fueled by a 165 per cent jump from the previous quarter, with fintech funding rising from USD 293 million in Q2 2024 to USD 778 million in Q3 2024. A major boost came from DMI Finance, which raised USD 334 million, specialising in loans for consumers and small businesses.</span></p> <p><span style="font-size:14px">Alternative lending led the way, attracting USD 517 million, up 49 per cent from USD 348 million in Q3 2023. However, the investment technology segment saw a downturn, dropping 58 per cent to USD 109 million from USD 257 million last year.</span></p> <p><span style="font-size:14px">The payments segment secured USD 93 million in Q3 2024, showing steady performance.</span></p> <p><span style="font-size:14px">Despite the funding surge, the number of deals fell 25 per cent, with only 46 rounds in Q3 2024 compared to 62 rounds in Q3 2023, indicating a shift towards larger but fewer investments.</span></p> <p><span style="font-size:14px">The report also highlights a 50 per cent decline in acquisitions, with only four fintech companies acquired in Q3 2024, compared to eight in the same quarter last year.</span></p> <p><span style="font-size:14px">Additionally, RegTech and Insurance IT sectors struggled, with the former reporting no funding this quarter, in contrast to USD 238 million in Q3 2023. Insurance IT plummeted, receiving just USD 163,000 compared to USD 230 million last year.</span></p> <p><span style="font-size:14px">Public offerings were also subdued, with only two companies going public, down from three IPOs in Q3 2023. However, Indias startup ecosystem celebrated a new unicorn, as Moneyview achieved unicorn status in September 2024.</span></p> <p><span style="font-size:14px">The resurgence in funding signifies a pivotal moment in Indias journey toward becoming a global fintech hub. Rising digital adoption and supportive policies are laying the foundation for sustained growth, said Neha Singh, co-founder of Tracxn.</span></p> <p><span style="font-size:14px">Indias fintech landscape continues to evolve, balancing challenges in niche segments with promising growth in core areas like lending and payments.</span></p> <p><span style="font-size:14px">With global funding momentum and robust innovation, the ecosystem is well-positioned to play a transformative role in the future of finance.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 39609 https://knnindia.co.in/news/newsdetails/sectors/indias-fintech-sector-bounces-back-with-66-yoy-growth-in-q3-2024 2024-10-16 16:20:40 knnindia.co.in