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The fintech sector of India has seen substantial growth in Q3 of 2024, securing US$778 million in funding – a 66% increase compared to Q3 2023 (US$471 million) and a 165% surge from Q2 2024.
A report published by India Briefing places this growth in India second only to the United States in terms of fintech funding for Q3 2024. While Q1 2023 still holds the highest funding record at US$1.16 billion, Q3 2024 followed closely with US$778 million. The top-funded fintech segments were alternative lending, investment technology and payments. In addition, 2 startups went public, and one company achieved unicorn status during this period.
India Briefing also quoted a report by a market intelligence platform, stating India’s fintech ecosystem continues to solidify its position as a global leader. This growth is driven by government initiatives such as the Unified Payments Interface (UPI), which processed over 14 billion digital transactions in May 2024, and the JAM Trinity initiative, which integrates Aadhaar, mobile numbers and bank accounts. The allocation of Rs 26 billion to support fintech startups further accelerates the sector’s expansion.
The report, titled ‘Indian Fintech Journey from Evolution to Mega Public Listings’, said India now ranks fourth in all-time fintech funding, trailing the US, China, and the UK. However, in Q3 2024, India’s ranking jumped to second place. A major contributor in this regard was DMI Finance, the NBFC, which secured US$334 million in September 2024, fueling the US$517 million raised in the alternative lending sector – a 495 increase from Q3 2023 and a 199% rise from Q2 2024.
The report, however, noted that despite the rise in funding, fintech acquisitions in India slowed, with only 4 deals recorded in Q3 2024, marking a 50% decrease from the 8 acquisitions seen in Q3 2023. One notable acquisition in Q3 2024 was Ijeeva, a payment solutions company, by FinFusion Solutions, an IT consulting firm catering to the fintech landscape.
The report predicted that Indian fintech companies’ combined revenue will rise to US$260 billion by 2030, up from the current US$20 billion. This growth will be fueled by higher consumer spending, deeper market penetration, and advancements in artificial intelligence.
The number of registered fintech startups in India has grown nearly 5-fold in the past 3 years, from 2,100 in 2021 to 10,200 in 2024. Between 2014 and 2023, Indian fintech companies raised over US$28 billion across 1,486 deals, with US$4.3 billion coming from IPOs.
