Investments in the fintech segment fell to $29 million in April from $120 million in March, taking the total investments in the sector in 2024 to $203 million, according to a report by financial services consulting firm The Digital Fifth.
The report showed that a sizeable portion of the funding was in companies specialising in payments services, especially in the cross-border payments sector. Startups in the loan marketplace segment also attracted investments during this period. Around nine startups were funded in April, and much of the funding was seed stage.
BankBazaar secured the top spot in April as the highest funded startup, securing $9.6 million. Insurtech platform ClaimBuddy took the second spot with a funding of $5 million. “For these companies, the infusion of capital sets the stage for accelerated product development, market expansion, and the potential for strategic partnerships or acquisitions,” the report said.
The cross-border payments segment witnessed traction in April with companies like BriskPe and xPay receiving funding. So far in 2024, companies like Perfios, IDfy and Mswipe have secured the highest funding in the Indian fintech space.
“Looking ahead, we anticipate segments like enterprise fintech, embedded finance, MSME lending, secured lending and wealth/insurance to attract substantial investments,” Sameer Singh Jaini, founder and CEO of The Digital Fifth, said. “These sectors are driven by cutting-edge innovations and increasing investor interest.”
Investments in the first four months of 2023 stood at $1,572 million, far higher than the $203 million in 2024. The Digital Fifth’s month-by-month analysis of fintech investments over the past two years shows a persisting slowdown. The analysis shows that only the most ground-breaking innovations have received funding, which signals investors’ increasing selectivity.
