Bengaluru, Jan 13 The Indian fintech sector raised $1.9 billion in 2024, keeping its position as one of the top three globally-funded fintech ecosystems last year, behind the US and the UK, a report showed on Monday.
The third quarter (Q3) stood out as the highest-funded quarter of the year, with $805 million raised — a 61 per cent increase compared to Q3 2023, according to the report by Tracxn, a leading market intelligence platform.
Additionally, 59 per cent of the total funding was secured during the second half of the year, indicating a late-year recovery. August emerged as the most robust month for funding, contributing $434 million to the annual total.
"Despite the global funding slowdown, India’s fintech ecosystem continues to demonstrate remarkable resilience and adaptability. The emergence of two new unicorns and a record eight IPOs in 2024 underscore the sector’s ability to thrive amid challenges,” said Neha Singh, Co-founder at Tracxn.
The year saw 26 acquisitions along with eight IPOs and two unicorns.
“As we look to the future, the sector is poised to build on these successes, driving financial inclusion and innovation while solidifying its position as a global leader in the fintech space,” said Singh.
The funding landscape in 2024 saw a significant shift, with three $100 million-plus funding rounds recorded.
Digital lending solutions accounted for 64 per cent of the total funding raised during the year. The investment tech segment garnered $320 million in funding.
Bengaluru maintained its leadership as the top hub for fintech funding in 2024, followed by Mumbai and Delhi.
Regulatory developments have also played a critical role in shaping the fintech landscape this year.
In August, the Reserve Bank of India (RBI) granted Self-Regulatory Organisation (SRO) status to the Fintech Association for Consumer Empowerment (FACE), an industry body representing approximately 80 per cent of digital lending volumes in the country.
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