India now 4th largest fintech startup ecosystem
With 1 lakh startups, the country behind the US & China; Records 68% growth in fintech funding in Sept qtr
♦ Peak XV Partners, Y Combinator and Accel are leading investors in fintech sector
♦ The sector records growth in alternative lending, banking tech
♦ Alternative lending clocked 259% growth at $305 mn
♦ RegTech (regulatory technology) received funding of $229 mn in Q3
Bengaluru: India’s fintech sector saw a 68 per cent surge in funding in the July-September period (Q3) from the previous quarter, as the country became the fourth-highest funded fintech startup ecosystem globally, a report showed on Thursday. Overall, the country is the third largest startup ecosystem globally with nearly one lakh startups, behind the US and China.
No new unicorns were created in Q3, while it saw 7 acquisitions and 2 IPOs. Bengaluru led the funding in the fintech space, followed by Mumbai and Noida, according to the report by Tracxn, the leading market intelligence platform.
Peak XV Partners, Y Combinator, and Accel emerged as the leading investors in the fintech sector. The sector witnessed significant growth in specific segments with alternative lending, banking tech and RegTech emerging as top performers in the first half this year. Alternative Lending, in particular, clocked a remarkable growth of 259 per cent compared to Q2 2023, reaching $305 million in funding. The BNPL (buy now pay later) sector which has seen significant growth and adoption within the country contributed to the growth in this sector.