The Indian fintech ecosystem seems thriving on investments as top global fund houses line up capital to enter the world's most robust digital payments arena.
In the latest round of fund raiser, as per report, FlexiLoans, backed by KKR India senior advisor Sanjay Nayar and former KPMG top honcho Narayan Sheshadri, in June has raised $90 million in a mix of equity and debt.
The digital lending platform for small businesses raised the highest funding in the month of June among the fintech players in the country. While the consumer lending fintech Kissht stood at the second place while raising $80 million as part of a fresh funding round led by Vertex Growth, Brunei Investment Agency, Vertex Ventures SEA India and Endiya Partners. According to reports, the latest round valued the fintech company at close to $500 million.
The total amount raised by the top 15 funding rounds in June totalled to $420.7 million. The FinTech funding downtrend was seen in the previous months of April and May, fintech funding rally, according to Siddharth Mehta, MD & CEO, Freecharge, is not ending.
“Opportunity in India, in terms of product and services, is huge and that is why the funding rally is not ending. However, it should be balanced with processes and corporate governance, he said.
As per reports, the funding raised by fintech startups declined almost 45% to $1.77 Bn during January-March 2022 from $3.2 Bn raised in the December quarter of 2022, while the average ticket size stood at $24.5 Mn in Q1 2022, down 40% from $40.5 Mn in Q4 2021.
As of June 2022, there have been 160 fintech deals, which has seen fintech startups raise $3.47 Bn. This figure is bigger than the fintech funding amount in the entirety of 2020 and is almost 44% of the total funding in 2021, according to an Inc42 report.
However, inspite of fears of a funding winter and a global economic slowdown due to geopolitical tensions, and also regulatory challenges, it is noteworthy that some of the biggest investors continue to invest in the Indian fintech space.
To give an overview, here are the top 15 funding rounds totalling to $ 420.7 million from the month of June, as per data collated by PGA Labs.