Indian fintech start-ups raised a total of $1.4 billion in the first half (H1) of 2023, a massive year-on-year (YoY) drop of 67 per cent from $4.3 billion raised in the same period last year, according to a report by Tracxn – a market intelligence platform. However, on a sequential basis, funding slid just 6 per cent compared to $1.5 billion raised in H2 2022.
This decline in funding was largely due to the downward trend in early-stage investments, which plunged 81 per cent and 68 per cent from H1 2022 and H2 2022 respectively. Seed-stage funding, too, saw a similar decline.
Regardless, the fintech sector contributed to more than 84 per cent of the funds raised by the start-up ecosystem in H1. Moreover, India retained its position as the third-highest funded fintech industry, after the US and UK, similar to the previous year. India has twice as many fintech companies than China and Canada.