India Ranks 3rd Globally in Fintech Funding Despite 33% Lower Infusion in 2024: Report

India ranked third globally in terms of funding received in the fintech segment despite a decline of 33 percent on a year-on-year basis to $1.9 billion in 2024, market intelligence firm Tracxn said in a report on Monday.

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The sector witnessed a decline in funding, driven by a broader slowdown in demand and geopolitical headwinds, Tracxn's Annual India fintech report 2024 said.

"The fintech sector experienced a notable decline in funding in 2024, with a total of $1.9 billion raised. This represents a 33 percent decrease from the $2.8 billion secured in 2023. The Indian fintech ecosystem has solidified its position as one of the top three globally funded fintech ecosystems in 2024, trailing only the US and the UK," the report said.

The sector had raised $5.6 billion in 2022. The highest funding of $805 during 2024 was received by the sector in the third quarter which was 61 percent higher on a year-over-year basis. Additionally, 59 percent of the total funding in 2024 was secured during the second half of the year, indicating a late-year recovery while August emerged as the most robust month for funding, contributing $434 million to the annual total.