The Indian fintech landscape is experiencing a remarkable resurgence in funding, as evidenced by a staggering 59% quarter-on-quarter (Q-o-Q) increase to $551 million in the first quarter (Q1) of calendar year (CY) 2024, according to a recent report by market intelligence platform Tracxn. This surge, up from $346 million in the previous quarter, underscores the sector’s resilience and potential to drive India’s economic growth. Despite facing headwinds on a year-on-year (Y-o-Y) basis, with funding down 57% from the $1.3 billion raised in the year-ago period, India continues to hold its position as the third-largest recipient of fintech funding globally, trailing only behind the US and China.

Neha Singh, the founder of Tracxn, emphasizes the significance of these Q1 2024 findings, highlighting the fintech sector’s innovative prowess and its pivotal role in India’s economic expansion. The sustained investor interest underscores the importance of fostering a conducive ecosystem for startups and research and development (R&D), aligning with the government’s Startup India Initiative. This surge in funding not only reflects the dynamism and innovation inherent in the fintech industry but also positions India as a frontrunner in the global fintech arena.

Examining the quarter-on-quarter funding trends for Indian fintech startups reveals a compelling narrative of growth and resilience:

Q1 2024: Funding Amount ($mn) – 550.8, No. of Deals – 33 Q4 2023: Funding Amount ($mn) – 346.7, No. of Deals – 53 Q3 2023: Funding Amount ($mn) – 476.6, No. of Deals – 33 Q2 2023: Funding Amount ($mn) – 138.5, No. of Deals – 38 Q1 2023: Funding Amount ($mn) – 1300, No. of Deals – 56

The data showcases a remarkable turnaround from the modest funding levels witnessed in Q2 2023 to the robust performance recorded in Q1 2024. Despite fluctuations in funding volumes, the resilience of the fintech sector is evident in its ability to attract investments even amidst challenging market conditions.

Delving deeper into the top fintech funding rounds in Q1 2024 provides insights into the key players driving this surge:

Top Fintech Funding Rounds in Q1 2024:

  1. Credit Saison – Funding Amount ($mn): 144
  2. Avanse – Funding Amount ($mn): 120
  3. Perfios – Funding Amount ($mn): 80
  4. Vivifi India Finance – Funding Amount ($mn): 75
  5. Idfy – Funding Amount ($mn): 27

These substantial funding rounds underscore investor confidence in the potential of these fintech companies to disrupt traditional financial services and drive innovation in the sector.

Moreover, analyzing city-wise fintech funding trends in Q1 CY2024 provides valuable insights into the geographical distribution of investments:

City-wise Fintech Funding Trends – Q1 CY2024:

  • Bengaluru: 44%
  • Mumbai: 35%
  • Hyderabad: 13%
  • Gurgaon: 3%
  • Noida: 2%

Bengaluru emerges as the leading hub for fintech funding, capturing nearly half of the total investments, followed by Mumbai and Hyderabad. This concentration of funding in select cities underscores the importance of ecosystem development and collaboration between stakeholders to nurture fintech innovation across the country.

While the resurgence of funding in Indian fintech startups paints a promising picture, several challenges and opportunities lie ahead:


  1. Regulatory Uncertainty: The evolving regulatory landscape poses challenges for fintech startups, requiring them to navigate complex compliance requirements.
  2. Talent Acquisition: Fintech companies face stiff competition for skilled talent, particularly in emerging technologies such as blockchain and artificial intelligence.
  3. Market Competition: As the fintech sector matures, competition intensifies, necessitating differentiation and innovation to stand out in the crowded market.


  1. Financial Inclusion: Fintech innovations have the potential to enhance financial inclusion by reaching underserved segments of the population with innovative products and services.
  2. Digital Transformation: Fintech startups play a pivotal role in driving digital transformation across industries, enabling seamless and efficient financial transactions.
  3. Collaboration and Partnerships: Collaboration between fintech startups, traditional financial institutions, and regulatory bodies can foster innovation and address market gaps more effectively.

In conclusion, the resurgence of funding in Indian fintech startups signals a positive trajectory for the sector, driven by innovation, investor confidence, and a conducive ecosystem. By addressing challenges and capitalizing on opportunities, the Indian fintech industry is poised to consolidate its position as a global leader in financial innovation and drive inclusive growth across the economy.

By Admin

Leave a Reply

Your email address will not be published. Required fields are marked *