Fintech Funding in India was widely discussed and debated throughout 2022. With late-stage funding witnessing sporadic traction, the entire ecosystem simultaneously branded the situation as the ‘Funding Winter’. This may seem like an apt reaction, especially after last year’s electric funding scene, with headlines frequently announcing rounds going into the hundred millions that sent valuations soaring into the billions. In fact, 14 entities
attained the coveted Unicorn status in 2021, as compared to only 5 in 2022.
However, 2022 numbers paint an entirely different picture for newer entrants. It seems as if it was the year for the underdogs, with investors taking their gaze away from the ecosystem giants to analyse the potential of up-and-coming startups.
Key Insights from the report:
– USD 5.13 billion raised in 2022 across 298 startups
– The evolving regulatory landscape has brought the spotlight on licensed entities
– The Lending segment raised USD 2 billion across 94 startups
– Wealthtech as well as Insurtech are getting accelerated
– Entities, which are part of Established Parent Companies are a target for investments
– 2nd-time founders are being really well funded
– Proven business models with a focus on profitability are raising larger rounds
– Y Combinator, Tiger Global were the most active investors along with 9Unicorns, Beenext, B Capital, Blume, Sequoia, and Sparkle Fund (from DMI).
– Pre Series A, Series A funding was better than 2021 in terms of the number of startups as well as the amount
– There is a definite reduction in funding rounds for Series C and beyond
– Bangalore led with 105 startups raising USD 2.17 billion, followed by New Delhi, Mumbai, Chennai and Pune.
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