Fintech start-ups raised $61 million in July; Wealth tech emerges as highest funded segment
Mumbai, August 4, 2024: India’s fintech industry saw a funding inflow of $61 million in July, taking the total investments of the year to $398 million. Funding in July 2023 stood at $51 million. Interestingly, the Wealth tech sector emerged as the highest-funded segment this month, securing funding of $52 million.
The funding of $61 million was spread across ten unique companies. The payments sector followed closely as the second-highest funded segment during the month. Wealth management company Deserv raised $32 million, making Mumbai the highest-funded city for the month. Other notable investments during the month, included wealth-tech company Stable money which raised $15 million and payments company Dice, which raised $5 million. Among the funded companies, several models have been gaining traction, such as new-age algorithmic trading platforms, alternative investment platforms, and goal-based trading platforms. Innovative models like one-stop business banking platforms for cross-border payments have also emerged.
With $398 million invested so far this year, investor interest has primarily focused on the enabler segments. However, the lending segment is also gaining traction. The limited instances of repeat funding, coupled with consistent investments in unique companies each month indicates the brewing innovation within the Indian fintech sector.
“Looking ahead, we anticipate segments like secured lending models, apps for MSMEs, trading and investment platforms and Banking as a service (BaaS) models to attract substantial investment in fintech. Driven by groundbreaking innovations and increasing investor interest, these sectors are experiencing significant growth within the fintech landscape,” said Sameer Singh Jaini, The Digital Fifth founder
Within the secured lending space, there is an expectation that digital property valuation startups will grow, and phygital journeys will be transformed into digital journeys, leading to process simplification and streamlining. Startups that provide modular LOS/LMS to support complex secure lending products are likely to thrive and CRM platforms that can handle assisted digital journeys are expected to gain traction.
During 2024, the fintech industry has seen 60 rounds of funding so far. In the year, 59 unique fintech firms were funded and the enablers segment raised a total of $148 million. Sectors like lending and payments raised $122 and $41 million respectively. Bangalore has remained the epicenter of funding in 2024, securing the highest share of fintech funding in India.
About The Digital Fifth:
Headquartered in Mumbai, The Digital Fifth offers digital finance consulting, solutions to the BFSI segments such as Banks, NBFCs, Fintechs, Wealthtechs, Regtechs, and Insurance organisations. The Digital Fifth is dedicated to driving change in the BFSI landscape as an integral part of the ecosystem. They provide specialised consulting services including Digital and Open banking advisory, BFSI Product & Program Management, Technical due diligence, and Security and Compliance services. The Digital Fifth also facilitates discussions in the industry through their event Bharat Fintech Summit, which is scheduled to host its 3rd edition on the 5th and 6th of February next year.
