Fintech funding at $242 million so far this year
Fintech players have raised a total of $242 million so far this year with companies operating in the enablers segment attracting the most amount
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Bengaluru, 19 June: Fintech players have raised a total of $242 million so far this year with companies operating in the enablers segment attracting the most amount.
According to report by finance consulting and advisory firm Digital Fifth, fintech startups raked in $34 million in May, which was marginally higher than funding in April. The fund raising was the highest at $120 million in March.
Companies operating in the enablers segment attracted the maximum quantum of funds. Other sectors which saw decent funding included Regtech, Lendingtech, and Paytech sector, the report noted.
Nine companies in the enablers segment raised $23 million as per the report. IDFY, which operates in the Regtech segments, has emerged as the highest-funded startup this month, securing $10.7 million. Vegapay operating in the paytech segment raised $5.5 million and weathtech startup Wealthy raised $5.3 million. Segments like Lending-as-a-Service, insurance premium financing and loan against security platform attracted funding in May. Full-stack digital insurer, GoDigit also secured substantial funding via a successful IPO in May.
“The fintech segment is at an inflection point. Looking forward, we expect companies operating in the cross-border payments, digital Lending, Insurtech and Anything as a Service (XaaS) Models to attract the attention of investors. Over the past two years, our analysis of fintech investments showed turbulent times in the industry. However, the slight increase in investment in May acknowledges and recognizes this sector & its inherent resilience,” said Founder of The Digital Fifth.
In 2024, the fintech industry has seen 40 rounds of funding so far. In the year, 39 unique fintech firms were funded and the enablers segment has raised a total of $147 million. Sectors like lending and payments raised $34 and $30 million respectively. Among the top cities, Bengaluru has remained the epicentre of funding in 2024, securing the highest share of fintech funding in India.
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