Funds for fintech cos hit 3-year low at $2 bn

InCred was the only fintech to turn unicorn after it raised $60 million

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India's fintech startups raised a total of $2 billion in 2023, the lowest funding in three years, with just five of them snagging more than $100 million each, a Tracxn report released on Thursday said, as high-interest rates globally dampened investor sentiment.

The five startups are Perfios, Mintifi, InsuranceDekho, PhonePe, and KreditBee. InCred was the only fintech to reach a unicorn ($1 billion) valuation in 2023 after it raised $60 million from investors.

The slump in fintech funding is part of the broader cash crunch in the Indian startup ecosystem over the past two years.

The Tracxn Geo Annual Report on Indian fintech attributed the steady decline in funding and the investor scepticism in the fintech segment to high borrowing costs and challenging macroeconomic factors.