Fintech investments in India nearly doubled to $3.7 billion in 2019 from $1.9 billion the previous year, putting the country as the world’s third largest fintech center, behind only the U.S. and U.K., according to Accenture.
Accenture, which analyzed data from CB Insights, a global venture-finance data and analytics firm, said the number of deals was up slightly to 198 last year from 193 in 2018.
The report said investments in payments companies more than tripled to $2.1 billion from about $660 million in 2018, while funding into insurtechs also rose strongly, up 74% to $510 million.
A vast majority of funds raised last year in India went into payments startups, accounting for 58% share, while insurtechs raked in 13.7% of the investments and fintechs in lending accounted for 10.8% of the total, the data showed.
“There’s a lot brewing in India’s fintech ecosystem and this steady flow of funds shows investors’ confidence in the industry’s future growth potential. The increase both in deal value and the number of deals is a good indicator of what’s to come and bodes well for the future development of cutting-edge financial technology in the country,” said Sonali Kulkarni, Managing Director – Financial Services, Accenture in India.
One97 Communications, the parent company of PayTM, raised $1.66 billion from two separate transactions, while PhonePe tapped investors for about $210 million also from two separate deals and Razorpay raised $75 million.
Other large transactions included $282 million investment in insurtech firm PolicyBazaar and the $120 million in credit card payments company CRED.
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