Indian fintech funding witnessed a decline of 63% in 2023

Indian fintech funding witnessed a decline of 63% in 2023

The fintech sector received funding of $2bn in 2023, a decline of 63% and 76% compared to the previous year's $5.4bn raised in 2022 and $8.4bn in 2021.

The fintech sector received funding of $2bn in 2023, a decline of 63% and 76% compared to the previous year's $5.4bn raised in 2022 and $8.4bn in 2021.

India has topped the list for digital payments and recorded transactions higher than the top 4 leading countries combined, recording  89.5 million transactions in 2022.

India has topped the list for digital payments and recorded transactions higher than the top 4 leading countries combined, recording  89.5 million transactions in 2022.

 India ranked 3rd globally in 2023 in terms of fintech startup funding, strengthening its position as a significant player on the global stage.

 India ranked 3rd globally in 2023 in terms of fintech startup funding, strengthening its position as a significant player on the global stage.

Alternative lending, payments, and banking tech were the top-performing segments in the Indian fintech sector.

Alternative lending, payments, and banking tech were the top-performing segments in the Indian fintech sector.

The digital lending space, which increasingly relies on customer data for its product marketing and development, is also likely to grow owing to the government’s recently launched Digital Personal Data Protection Act.

The digital lending space, which increasingly relies on customer data for its product marketing and development, is also likely to grow owing to the government’s recently launched Digital Personal Data Protection Act.

Only five $100 million funding rounds have taken place in 2023.

Only five $100 million funding rounds have taken place in 2023.

InCred was the only unicorn created in 2023, while it saw 31 acquisitions and 2 IPOs.

Bengaluru led the funding in the Indian FinTech space, followed by Mumbai and Jaipur.

Bengaluru led the funding in the Indian FinTech space, followed by Mumbai and Jaipur.

Peak XV Partners, Y Combinator, and LetsVenture emerged as the main investors in the sector.

Peak XV Partners, Y Combinator, and LetsVenture emerged as the main investors in the sector.

Bengaluru emerged as the leader in total fintech funding raised in 2023, followed by Mumbai and Jaipur.

Bengaluru emerged as the leader in total fintech funding raised in 2023, followed by Mumbai and Jaipur.

Image source: Pexels

Image source: Pexels

Data source: Tracxn

Data source: Tracxn