• FinTech deal activity in India is expected to reach 387 transactions in 2022, a 19% drop from 2021’s levels. Indian FinTech companies raised a total of $667m in Q3 2022 which brings total funding for the first nine months of the year to $5.8bn. Based on Q1 – Q3 investment levels FinTech funding in India is projected to reach $7.7bn in 2022, a 19% reduction from the previous year.
• FPL Technologies, a credit card and credit platform provider, was the largest FinTech deal in Q3 2022 raising $100m in their latest Series D funding round led by MacRitchie Investments. This funding round pushes FPL Technologies to unicorn status with a $1.4bn valuation, although it is unclear what the fresh funding will be used for as FPL declined to comment on the funding round. OneCard, an FPL Technologies credit app, earlier in the year said it’s amassed more than 250k customers, who’d been spending around $60m with the cards every month. There are less than 30m Indians that have a credit card, which has opened a lot of room for start-ups. Indian banks and other providers are also expanding their credit card bases. But the eligibility criteria are hard to meet.
• Bangalore remained the most active FinTech city in India with 25 deals, a 38% share of total FinTech deal activity in the country during Q3. This is 5pp decrease from the previous quarter. WealthTech was the most active FinTech sector during Q3 with 15 deals, a 23% share of total deals. This was closely followed by the Marketplace Lending sector which had 12 deals this quarter.
