And the wait continues

It may be some time before the fintech funding tap starts to flow in earnest, reports Raghu Mohan

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If we look at funding trends, given the current stage and maturity of the fintech ecosystem, and macroeconomic developments, the curve is upwards," says Sugandh Saxena, chief executive officer (CEO) of the Fintech Association for Consumer Empowerment. Hopeful as the boss of the first central bank-recognised self-regulatory organisation (SRO) in this space maybe, the latest numbers released by the data intelligence platform Traxcn show funding fell by 35 per cent to $366 million in Q1 2025 year-on-year; it is flat on a quarterly basis. March though was the most-funded month in this period: $187 million was raised, accounting for 51 per cent. But Neha Singh, cofounder of Tracxn, feels "the funding slowdown is expected to extend into 2025, influenced in part by trade tensions. A recovery may be seen as global market conditions begin to stabilise." And that's a guess.

Change in focus

What is playing out is on the lines of the plot outlined in an October 2022 white paper by Coatue, a US-based technology-focused investment manager. It held that over the coming decade, fintech needs to focus "on owning the balance sheet, and maniacal rebundling..."