Press Release

Fintech investments in April dip to $29 million: The Digital Fifth report

BankBazaar secured the top spot this month as the highest-funded startup, securing $9.6 million.

Cross-border fintech firms dominate funding in April

The fintech space in India attracted only $29 million of investments in the month of April, taking the total amount of investments in CY2024 to $203 million.

Data compiled by BFSI consulting firm, The Digital Fifth shows that a large part of the funding was in companies specializing in payment services, especially in the cross-border payments sector. Startups in the loan marketplace segment also attracted investments during this period. About 9 startups were funded in April, and much of the funding was seed-stage funding.

Gurgaon accounted for 33% of funded companies this month.

BankBazaar secured the top spot this month as the highest-funded startup, securing $9.6 million.

Insuretech startup Claimbuddy, cross-border payments company Briskpe andPaytech enabler Innoviti were some other startups that secured funding in April.

For these companies, the infusion of capital sets the stage for accelerated product development, market expansion, and the potential for strategic partnerships or acquisitions. Investors’ inclination to support players demonstrating high levels of innovation across segments came through in the kind of investments made during the month.

Cross-border payments are typically complex, costly, manual, lack transparency and have major recon issues. These challenges provide innovation opportunities for new and existing players, attracting investor interest. In particular, startups such as BriskPe are leveraging the OPGSP framework for MSMEs facing high difficulty in recurring small-value cross-border payments, rendering them simpler, more transparent, and faster.

In CY2024 so far, companies like Perfios, IDfy and Mswipe have secured the highest funding in the Indian fintech space. “Looking ahead, we anticipate segments like enterprise fintech, embedded finance, MSME lending, secured lending and wealth/insurance to attract substantial investments. These sectors are driven by cutting-edge innovations and increasing investor interest,” said, Sameer Singh Jaini, founder and CEO of The Digital Fifth

Investments in the first four months of 2023 stood at $1572, as compared to $203 million this year. The Digital Fifth’s month-by-month analysis of fintech investments over the past two years reveals a persisting slowdown. The analysis shows that only the most ground-breaking innovations have received funding, which signals investors’ increasing selectivity. On a pan-India basis, Bangalore has remained at the epicenter of the fintech ecosystem in the country.

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 to driving 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.