Fintech start-ups in India raised a total of $5.65 billion in 390 rounds in 2022, a decline of 47 per cent in terms of funding amount and 29 per cent in the number of rounds, compared with 2021, according to a report by Tracxn, a market intelligence platform. The drop in funding, the report says, can be attributed to the decline in late-stage funding from $8.3 billion in 2021 to $3.7 billion in 2022, a 56 per cent fall.
Fintech start-ups recorded 13 funding rounds of over $100 million in value, a 50 per cent decline from 26 rounds in 2021. Further, only four such start-ups received unicorn status in 2022, compared with 13 in 2021. Yet, India received the third-highest amount of funding in the fintech sector, behind only the US and the UK.
Growth in the space was expected to continue in the long run, propelled by a large unbanked population and rising mobile phone usage, the report added.