~ Samriddhi Singh Mahar
The global FinTech sector witnessed another surge in funding in October, going from USD 2.2 billion in September, to USD 2.66 billion in October, as per 1Lattice data. This increase in funding shows a continuous trend of growth in the sector.
The top 20 FinTechs globally raised approximately USD 1.81 billion in October, which is significantly higher than the USD 1.58 billion raised in September.
This group’s funding has remained relatively stable, with USD 1.49 billion raised in August, USD 1.36 billion in July, USD 1.57 billion in June, USD 2.1 billion in May, and USD 1.82 billion in April.
Splitero took the lead in October with USD 300 million raised in funds managed by Antarctica Capital. They were followed by Zepz who raised USD 267 million through investors such as Leapfrog, Accel, TCV and International Financial Corporation to fund their expansion into the African markets.
While there has been a funding winter in startups over the past year, funding has seen an uprise in early stage deal funding and decline in late stage deals funding. FinTechs across the globe raised about USD 1.87 billion in July 2024, while the top 20 deals summed up to about USD 1.36 billion.
KOHO raised USD 190 million out of which USD 40 million is equity and USD 150 million is in debt. They announced that this new capital will be used to further its efforts in obtaining a bank license and expanding their range of products.The continuous interest by investors in the Global FinTech sector might be hinting towards increasing innovation in the sector.
FinTech Funding Scene in India
Unlike the global market, the Indian finTech sector is not faring so well with a drop in funding from USD 230 million in September from 10 rounds to USD 199.4 million from four rounds, as per the latest data by 1Lattice.
Finova Capital, an NBFC that serves MSMEs, led the October 2024 funding rounds by raising USD 135 million from Avataar Venture Partners, Sofina, Madison India Capital, and Norwest Venture Partners in Series E.
In October 2024, India’s fintech funding fell sharply to USD 199.4 million from just four rounds, continuing a declining trend from August’s USD 507.8 million and September’s USD 230 million, according to 1Lattice data. Although, the October 2024 funding remains almost the double compared to the previous year in the same month. This funding slump reflects global investor caution and adds to the sector’s recent volatility.
The Indian fintech industry is estimated to be around USD 110 billion in 2024 and is projected to reach about USD 420 billion by 2029, as per the statement of Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director, National Payments Corporation of India.
However, contrary to this statement, The financing volatility in the sector has been noticeable throughout 2024.
In June, fintech firms raised USD 587.4 million, compared to USD 186.2 million in May and USD 320.7 million in April. Funding then dipped to USD 139 million in July before rising again in August, after which September and October have seen a steady decline.
Here’s the list of the top 10 global fintech fundraises in October 2024:
| Company name | Funds raised (USD Bln) |
Investors | |
| 1 | Splitero | 300 | Antarctica Capital |
| 2 | Zepz | 267 | Accel, Leapfrog, TCV, Coller Capital and International Financial Corporation |
| 3 | KOHO | 190 | PROPELR Growth, Rockefeller Capital, Drive Capital, TTV, and BDC |
| 4 | ASAAS | 148 | BOND, Softbank, 23S Capital, and Endeavor Catalyst |
| 5 | Moniepoint | 110 | Development Partners International, Verod, Lightrock, QED Investors, Novastar Ventures, British International Investment, Global Ventures, Endeavor, New Voices Fund and Google |
| 6 | Mercury | 100 | Natixis Corporate and Investment Banking (CIB) |
| 6 | Valon Mortgage | 100 | WestCap |
| 7 | Imprint | 75 | Thrive Capital, Kleiner Perkins, and Ribbit Capital |
| 7 | Finix | 75 | Acrew Capital, Leap Global, Lightspeed Venture Partners, Citi Ventures, Tribeca Venture Partners, Homebrew, Insight Partners, Inspired Capital, and Cap Table Coalition |
| 8 | Farther | 72 | CapitalG and Viewpoint Ventures |
| 9 | Agrolend | 53 | Creation Investments, Syngenta Group Ventures, Vivo Ventures, Norinchukin Bank, Valor Capital, Lightrock, Yara Growth Ventures, Provence Capital, SP Ventures and Barn |
| 10 | Branch | 51 | American Family Ventures and HSCM Ventures |
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