Wednesday, July 17, 2024

Fintech Funding Falls 59% To $795 Mn In H1, 2024 | Pragativadi | Odisha News, Breaking News Odisha, Latest Odisha News – N.F Times

New Delhi: During the first half of 2024 (January-June), there was a significant decline in funding in the fintech sector, with only $795 million raised, marking a 59% drop from the $1.93 billion raised in the same period last year.

According to market intelligence platform Tracxn, the sector secured $896.7 million in the second half of 2023. In its semi-annual report, Tracxn noted that funding in late-stage rounds reached $551 million, reflecting a 63% decrease from the $1.5 billion raised in the first half of 2023.

Neha Singh, co-founder at Tracxn, highlighted the need for a cautious outlook and strategic planning among start-ups and investors due to the funding slowdown. Despite this, she expressed optimism regarding the sector’s dynamism, expecting growth and innovation driven by a supportive policy environment and technological advancements.

The Reserve Bank of India (RBI) introduced the Framework for Self-Regulatory Organisation for FinTechs to promote self-regulation within the industry and ensure compliance with government regulations. This move is anticipated to enhance trust and stability within the sector, emphasizing the significance of fintech start-ups within the country’s financial system.

Funding in both the seed stage and early stage also experienced a decline in the first half of 2024. Early-stage rounds raised $179 million, representing a 50% decrease from the $361 million raised in H1 2023.

In the funding distribution, the first quarter of 2024 (January-March) contributed significantly, with $582 million raised, while Q2 2024 saw only $214 million in funding. Among the top-performing sectors in the fintech space, Alternative Lending, RegTech, and Banking Tech stood out. Notably, Perfios emerged as the sole start-up to achieve unicorn status during this period. Bengaluru led in terms of total funds raised, accounting for 37% of the funding ($297 million), followed by Mumbai ($231 million) and Pune ($106 million).

The first half of 2024 witnessed six acquisitions, marking a 66% decline compared to the 18 acquisitions in H1 2023. Additionally, a total of five companies went public in the first half of 2024, while no IPOs were observed in the same period the previous year.

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