Fintechs raise $158 million in second quarter of 2024

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Fintech funding at the end of the second quarter of this calendar year stood at $158 million, with lending emerging as the highest funded segment. The lending segment attracted investments of as much as $98 million, which was followed by the enablers segment. The fintech sector attracted $94 million of investments in June across 10 companies.

Interestingly, Pune has emerged as the highest funded city in June, driven by lending platform Fibe receiving $65 million in funding during the month. Rupeek and Supermoney, both again in the lending segment, received $14 million and $3.4 million respectively.

Lending companies operating in many niches received funding in June. This included Digital lending platforms such as Fibe, which utilise technology to expedite and simplify loan applications. Funding was also observed in companies such as Rupeek, facilitating Digital Gold Loans by using technology. Innovative products such as Insurance Premium Financing also received funding through Finsall, which facilitates loans for premium payments.

Multiple seed firms in the wealth and payments space have gained traction, reflecting growing interest and innovation in the sector. These include companies like Cheq, Lxme and Plus Gold, which received seed funding in June. The neo banking segment has also started attracting funding. For example, Jupiter, which operates in the neo banking space, raised $2.3 million.

Neo Banks are companies that provide banking experience through simple and convenient digital platforms by leveraging open banking APIs of one or more Banks/NBFCs. Industry experts say that the adoption of neo banking platforms by MSMEs is projected to rise, with expanded offerings such as lending and corporate cards addressing working capital, trade finance, and compliance needs.

“Looking ahead, we anticipate alternate investment companies, digital wealth management firms, Banking as a service (BaaS) models and leading tech firms focused on secured lending to attract substantial investment in fintech.” said, Sameer Singh Jaini , founder, The Digital Fifth.

On an overall basis, $337 million has been invested so far this year and investor interest has primarily been focused on the enabler segments. However, the lending segment is also gaining traction. 148 companies in the enablers segment, 122 in the lending segment and 33 in the payments segment have received funding in 2024.

Around 49 fintech startups have received funding and 3 including GoDigit, IBL Finance and MediAssist went public. On an overall basis, Bengaluru has been the city which has received the highest funding this calendar year.

About The Digital Fifth:
Headquartered in Mumbai, The Digital Fifth offers digital finance consulting, solutions to the BFSI segments such as Banks, NBFCs, Fintechs, Wealthtechs, Regtechs, and Insurance organisations. The Digital Fifth is dedicated todriving change in the BFSI landscape as an integral part of the ecosystem. They provide specialised consulting services including Digital and Open banking advisory, BFSI Product & Program management, Technical due diligence, and Security and Compliance services.