As the calendar year 2023 is about to end, the year witnessed a steep decline in funding for Indian fintech startups, primarily led by a decline in seed stage funding.
Latest data from Tracxn revealed that Indian fintech companies raised a total of USD 2.1 billion in 2023, which is significantly less than that of the previous years, having raised a whopping USD 6 billion in 2022, USD 9.6 billion in 2021 and 2 billion USD in 2021. 2020. The figures of 2023 were almost equal to that of the pandemic year 2020.
There has also been a decline in funding circles over the years. About USD 2 billion of funding in 2023 was raised through 126 rounds, compared to 500 rounds of funding in 2022 and 598 rounds of funding in 2021, the data highlighted.
The data further said there was a decline in seed stage funding with a total of $129.8 million raised, compared to $473.7 million in 2022, $451.6 million in 2021 and $207.8 million in 2020. Number of seed stage rounds recorded in 2023. so far there are 80, in 2022 it was 305, 401 in 2021 and 276 in 2020.
There was also a decline in early stage funding with a total of USD 434.9 million raised in 2023 so far across 28 rounds, compared to USD 1.8 billion in 2022 and 2021 each across 129 and 126 rounds of funding respectively and USD 825.9 million raised in 2020. across 87 passes by
Late stage funding also witnessed a drop, with USD 1.5 billion raised in 2023 so far across 18 late stage rounds, compared to USD 3.7 billion in 2022 across 65 rounds, USD 7.3 billion in 2021 across 71 rounds and USD 9020 million in 2921. rounds, the Tracxn data further added.
FinTech financing witnessed a significant drop in the month of October – by more than 50 percent, registering around USD 108 million from 12 deals, compared to USD 264 million from 9 deals in the previous month.
The highest raised in the month was from fintech company InsuranceDekho, which raised approximately USD 60 million in October. InsuranceDekho raised the amount of Mitsubishi UFJ Financial Group, insurer BNP Paribas Cardif, Beams Fintech Fund and Yogesh Mahansaria Family Office, revealed latest data from 1Lattice.
In calendar year 2023, the highest was raised by payment giant PhonePe. The company raised USD 350 million in January, USD 100 million in February, USD 200 million in March, USD 100 million in April and another USD 100 million in May. A total of USD 850 million was raised from January to May 2023.
In terms of number of FinTech companies, Mumbai leads the list with a total of 1332 companies, followed by Bengaluru with 1212 FinTechs, Delhi with 792 FinTechs and Chennai with 401 fintechs, the data added.