Is the Funding Winter Finally Ending?

Fintech Funding Rankings:

• India ranks 4th in all-time fintech funding after the US, China, and the UK.
• In Q3 2024, India rose to 2nd place globally in fintech funding.
• Q3 2024 funding: US $778 million.
• Q1 2023 remains the highest: US $1.16 billion.

Top-funded segments:

• Alternative lending: DMI Finance raised US$334 million, leading to US$517 million in the this sector.
• Investment technology: Secured US$109 million in Q3 2024. This is 356% increase from Q2 2024 & 58% decline from Q3 2023.
• Payments

Current fintech unicorns and startup growth in India:

• India’s Fintech Unicorns: 26 fintech unicorns, including 1 decacorn, with a combined valuation of US$90 billion.

- Notable unicorns: PhonePe, Razorpay, Cred, Slice, Acko, and Zerodha.

• Funding and IPOs: US$4.3 billion raised through IPOs; major exits include Paytm, AngelOne, Policybazaar, and others.

Projections:

• Fintech Unicorns Projection: India is expected to have 150 fintech unicorns by 2030.
• Key Growth Sectors: Payments, lending, insurtech, wealthtech, and neobanking.

- Lending: Book size projected to grow 6.6x to US$300 billion within 5-6 years.

- Insurtech: Expected to reach US$15 billion in gross written premium.

- Wealthtech: Assets under management projected to increase 4x to US$237 billion.

- Electric vehicle financing market projected to reach US$50 billion by 2030.

• Revenue Growth: Combined revenue of Indian fintech companies projected to rise from US$20 billion to US$260 billion by 2030. This is driven by higher consumer spending, market penetration, and AI advancements.

Looks like the funding winter of last 1.5 years is finally ending..Exciting Times Ahead !