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2018 FinTech Funding Analysis – India

India continues to evince considerable interest in the global FinTech narrative. At MEDICI, we have been closely tracking the evolution and growth of the Indian FinTech landscape over the years. Accordingly, an in-depth look at India’s FinTech funding has been presented in the recently published the India FinTech Report (IFR) 2019 by MEDICI, which also includes detailed insights on the market structure and investment cycle of Indian FinTech companies. The report goes on to illustrate how India has emerged as one of the leading FinTech markets globally, highlighting the evolution, growth, funding, major changes, and trends among FinTech companies in the country.

India’s Evolution as a FinTech Nation

The IFR 2019 summarizes FinTech’s evolution in India in four steps:

  1. Solving for identity in the form of Aadhaar for formalization.

  2. Getting everyone a bank account or equivalent (PMJDY) to store money.

  3. Building a scalable platform(s) to move money (IMPS, UPI, etc.). Here, FinTechs are helping.

  4. Allowing banks and FinTechs, including wealth/insurance/lending players, to access platforms like UPI to innovate.

This framework has led India to a FinTech revolution. Interestingly, with over 2,035 startups and high growth rate in terms of homegrown startups, India is poised for a FinTech revolution.

India FinTech Funding – Analysis

As per the MEDICI database, it was reported that in 2018, there were 165 PE/VC deals amounting to $1.83 billion of funding. Even though the Lending sector had the most number of deals (67), Payments was the most funded segment with $708.94 million in funding from just 21 deals. The following chart depicts the total number of deals, highlighting total funding across different segments

As pictured, the average funding per deal in payments amounted to $33.75 million; Lending – $7.9 million; InsurTech –$22.22 million; and B2B FinTech – $3.32 million. The WealthTech segment’s average funding per deal was $5.31 million.

Stage-wise (Series A, B, C, and so on) funding details are also available in the full report.

Funding Share by Segment*

Two deals from Paytm and Pine Labs contributed to 67.84% of the deal amount in the payments segment. Paytm, for instance, received $356 million in Series F funding, and Pine Labs received $125 million in Series C funding. The two highest-funded companies in the Lending segment were Lendingkart ($87 million) and NeoGrowth ($47 million); and in InsurTech, PolicyBazaar and Digit with $200 million and $44 million of funding respectively. B2B FinTech companies had a comparatively lower funding share when compared to other segments, with only 11 deals amounting to $36.54 million of funding.

In Summation

It is evident that India’s FinTech market is growing every day, and is expected to continue growing exponentially in the coming years. With the help of technology and new innovations, the country’s FinTech sector is trying to overcome various challenges (like regulatory requirements and funding sources) that it is presently facing. The rise of e-commerce & mobile transactions, rising customer expectations, banks supporting the technology platforms for back-end operations support, and national movements like demonetization, all acted as a catalyst in India’s FinTech growth story.

About the India FinTech Report 2019

The India FinTech Report 2019 by MEDICI offers an in-depth look at what makes the Indian FinTech ecosystem vibrant by diving deep into government, regulatory, and private sector initiatives. The report dives deep into broader FinTech segments and will provide valuable insights into domains including, but not limited to, Payments, Lending, WealthTech, InsurTech, and BankTech. In-depth research has been conducted in each segment to portray an accurate picture of what is currently happening in these segments by looking closely at trends, innovative business & tech models, inhibitors, and challenges.

The complete report is now available and can be accessed here.

*The total amount doesn’t include undisclosed deals, i.e., 27 deals. Doesn’t include debt funding, convertible bonds, grants, ICOs, and IPOs. Microfinance institutes and NBFCs which operate via a branch-led model are not included.


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