As the calendar year 2023 is about to end, the year has witnessed a steep decline in funding for Indian fintech startups, primarily led by a decline in seed stage funding. This year’s numbers in terms of money pumped into the sector match that of the Pandemic year.
However, even if the financial graph diverges in 2023, according to latest data from Tracxn, a total of approximately USD 30.9 billion has been pumped into the Indian FinTech sector through 3257 rounds since 2014 till date.
India’s fintech funding scene – 2014-2023
2014
Indian FinTechs have raised a total of USD 401.8 million across 104 funding rounds. It raised approximately $32.8 million through 70 seed rounds, $226.5 million through 28 early rounds and $127.4 million through 5 late stages. In terms of PE funding, a total of USD 9.1 million was raised in 1 round.
2015
FinTechs in India raised approximately USD 1.7 billion in 2015, almost triple the amount raised in their previous year. The amount was raised across 197 funding rounds, of which USD 94.6 million was raised across 135 seed stage rounds, USD 391 million across 42 early stage funding rounds and USD 1.1 billion across 18 late stage funding rounds. Additionally, USD 20.6 million was raised across 2 PE funding rounds.
2016
Indian FinTechs raised a total of USD 700.1 million, registering a notable decline in funding, across 264 funding rounds. It raised approximately USD 151.8 million through 207 seed stage rounds, USD 258.2 million through 47 early stage rounds and USD 290.2 million through 10 late stage rounds.
2017
FinTechs in India witnessed an almost fivefold jump in fundraising after a low fundraising year in 2016. Indian fintechs raised approximately USD 3.1 billion in 2017 through 319 funding rounds, of which USD 87.6 million was raised through 236 seed stage rounds, USD 462.7 million across. 64 early stage funding rounds and USD 2 billion across 18 late stage funding rounds. Additionally, USD 546 million was raised through 1 PE financing round.
2018
Indian FinTechs once again witnessed a decline in funding in 2018 and raised a total of USD 1.9 billion across 344 funding rounds. It has raised approximately $173.5 million through 253 seed rounds, $637.1 million through 72 early rounds and $1.1 billion through 19 late-stage rounds.
2019
FinTech funding in India increased surpassing its 2017 figures after witnessing a decline in 2018. It raised a total of USD 3.6 billion across 413 funding rounds. It has raised approximately $168.1 million across 267 seed stage rounds, $1.2 billion across 109 early stage and $2.3 billion across 36 late stage rounds. The year also witnessed a pumping of USD 27870 funds through 1 round of other undisclosed funding.
2020
Indian FinTechs have raised a total of USD 2 billion in the Pandemic year 2020, registering a noticeable decline in funding, across 392 funding rounds. It raised approximately USD 207.8 million through 276 seed stage rounds, USD 825.9 million through 87 early stage rounds and USD 921 million through 29 late stage rounds.
2021
Fintech funding grew well in 2021, after a pandemic year. It raised a total of 9.6 billion in the year through 598 funding rounds. A total of USD 451.6 million was raised across 401 seed stages, USD 1.8 billion was raised across 126 early stage rounds and USD 7.3 billion was raised across 71 late stage rounds.
2022
Indian FinTechs raised a total of USD 6 billion in 2022, recording a decline in funding, across 500 funding rounds. It has raised approximately $473.7 million through 305 seed stage rounds, $1.8 billion through 129 early stage rounds and $3.7 billion through 65 late stage rounds.
2023
FinTechs in India raised only USD 2.1 billion in 2023, down by almost 300 percent compared to 2022. The amount was raised through 126 funding rounds, of which USD 129.8 million was raised through 80 seed stage rounds, USD 434.9M million in total. 28 early stage funding rounds and USD 1.5 billion across 18 late stage funding rounds.