The Indian financial technology (fintech) start-up ecosystem, like other sectors, was hit hard by a funding winter. Despite the resurgence of large funding rounds in the space recently, many start-ups are still finding it challenging to raise capital.
Furthermore, a dearth of regulations has not done the fintech sector any service. Experts, however, say that the sector has fared better than most during this tumultuous period and investors are cautiously optimistic, albeit more selective with their bets.
Investments among fintech start-ups in India saw a decline of 47 per cent year-on-year (YoY) in 2022 at $5.65 billion, compared with $10.7 billion the previous year, according to data from Tracxn, a market intelligence platform.