India secured the third position worldwide for funding in the fintech sector, even though there was a 33 percent decrease year-over-year, totaling USD 1.9 billion in 2024, as per market intelligence firm Tracxn said in a report. The sector experienced a drop in funding, influenced by a general downturn in demand and geopolitical challenges, according to Tracxn's Annual India fintech report 2024.   

"The fintech sector experienced a notable decline in funding in 2024, with a total of USD 1.9 billion raised. This represents a 33 per cent decrease from the USD 2.8 billion secured in 2023. The Indian fintech ecosystem has solidified its position as one of the top three globally funded fintech ecosystems in 2024, trailing only the US and the UK," the report said.

The industry secured USD 5.6 billion in 2022. The sector obtained the largest funding of USD 805 in 2024 during the third quarter, reflecting a 61 percent increase compared to the same period last year. Moreover, 59 percent of the overall funding in 2024 was obtained in the latter half of the year, suggesting a recovery towards the end of the year, with August being the strongest month for funding, adding USD 434 million to the yearly total.

"Despite the global funding slowdown, India's fintech ecosystem continues to demonstrate remarkable resilience and adaptability. The emergence of two new unicorns and a record eight IPOs in 2024 underscore the sector's ability to thrive amidst challenges," Tracxn, Co-Founder, Neha Singh said.