India has clinched the third spot worldwide in terms of funding amassed for the fintech sector during the initial quarter (Q1) of the current year, as per a recent report unveiled on Friday.
The total funding infusion into the fintech arena saw a remarkable surge of 59 percent in Q1 2024 when juxtaposed with Q4 2023, underscoring the resilience of India's fintech domain amidst a dynamically evolving economic milieu.
During Q1 2024, the aggregate funding soared to $551 million, a significant leap from the $346 million garnered in the preceding quarter, as per findings outlined in a report by Tracxn, a prominent market intelligence platform.
Bengaluru spearheaded the funding initiatives within the Indian fintech sphere, closely followed by Mumbai and Hyderabad.
Neha Singh, the co-founder of Tracxn, remarked, "The sustained investor interest underscores the imperative of fostering startups and research and development endeavors, synergizing with the 'Startup India' Initiative. This upsurge epitomizes the industry's agility and ingenuity, propelling India into a prominent global fintech contender."
Leading investors in the sector comprised Peak XV Partners, Y Combinator, and LetsVenture.
The fintech sector's advancement mirrors the robust performance of the Indian economy in the antecedent quarter, manifesting an impressive growth rate of 8.4 percent.
According to projections by the IMF, India is poised to ascend as the world's third-largest economy by 2027, boasting a GDP surpassing $5 trillion.
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