Key Indian FinTech investment stats in Q3 2024:
- Indian FinTech deal activity dropped by 53% YoY
- Indian FinTech funding projected to halve for 2024 as investors grow cautious due to economic uncertainty
- DMI Finance, a pioneering digital financial services provider in India, secured the biggest Indian FinTech deal in Q3 with a $333m funding round
In the third quarter of 2024, the Indian FinTech sector experienced a noteworthy YoY decline in both deal activity and total funding. The third quarter of 2024 closed with 46 deals, reflecting a 53% drop from the 97 deals recorded in Q3 2023 and remaining flat compared to Q2 2024, which also saw 46 deals.
Total funding in Q3 2024 amounted to $754m, marking a sharp 68% decline from the $2.36bn raised in Q3 2023 and a 19% decrease from the $928m raised in Q2 2024.
If current trends persist, the deal count for 2024 would be 184 transactions, a 60% decline from the 464 deals completed in 2023.
Funding for the year is projected to close at $3.4bn, representing a steep 52% decline from the $7.01bn raised in 2023.
These projections highlight the challenging environment in the Indian FinTech market, as cautious investor sentiment and reduced capital deployment have significantly impacted deal flow and funding volumes.
Funding from deals under $100m reached $420m in Q3 2024, down 48% from the $811m recorded in Q3 2023 and a 35% decline from the $642m raised in Q2 2024.
Larger deals valued at $100m or more accounted for $334m in Q3 2024, a substantial 78% drop from the $1.55bn raised by such deals in Q3 2023 but a 17% increase over the $285m seen in Q2 2024.
This decline in high-value transactions reflects a cautious investment approach in the face of broader economic uncertainties, with a shift towards smaller, less capital-intensive deals.
DMI Finance, a pioneering digital financial services provider in India, has secured an additional $333m investment from MUFG Bank, a subsidiary of Mitsubishi UFJ Financial Group, marking it the largest FinTech deals in India for the quarter.
DMI’s innovative platform leverages advanced technology to deliver consumer finance through POS and cross-sell loans, reaching over 15.2 million customers across India via strategic partnerships.
With MUFG’s support, DMI has scaled its business, established a robust track record in consumer finance, and advanced collaborative efforts, including business synergies with MUFG’s ecosystem companies under the MUFG Openly-connected Digital Ecosystem (MODE) initiative.
This investment further strengthens DMI’s position in the digital lending landscape, accelerates its growth trajectory, and enhances its role in advancing financial inclusion within the region.
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