Indian Fintech Startups Secure $1.2 Billion In Q1 2023: Tracxn As per the report, this is a sharp jump of 126% when compared with $523 million raised in the fourth quarter of 2022

Tracxn, a SaaS-based market intelligent platform, has revealed that fintech startups in the country attracted investments worth $1.2 billion during the first quarter of 2023, 55% lower than $2.6 billion raised in the first quarter of 2022. As per the report, this is a sharp jump of 126% when compared with $523 million raised in the fourth quarter of 2022. The number of funding rounds in Q1 2023 also experienced a drop of 77% and 39% against Q4 2022 and Q1 2022, respectively.

The report further revealed that early-stage funding for fintech startups during the quarter was $177 million, down 30% and 76% from Q4 2022 and Q1 2022, respectively. Seed-stage funding of $30.2 million was observed during this quarter, a fall of 21% and 74% from Q4 2022 and Q1 2022, respectively.

The fintech sector observed six $100-million funding rounds in the first three months of 2023. Companies such as PhonePe, Mintify, Insurance Dekho and KreditBee raised funds above $100 million during this period. Among Indian cities, fintech companies in Bengaluru took the lead, raising $796 million in the first quarter of 2023. This was followed by Mumbai and Gurugram, which raised $222 million and $151 million, respectively, during the quarter.

According to the report, it was an uneventful quarter in terms of IPOs and Unicorns. No companies from the FinTech space went public in Q1 2023, and there were no new entrants in the Unicorn club. However, there was a slight uptick in acquisitions. The sector witnessed 11 acquisitions in Q1 2023, as against six acquisitions in Q4 of 2022.

"Further, the government's push to promote a cashless economy combined with rising internet penetration in both rural and urban areas has contributed substantially in developing this sector within the country," said Tracxn in the report.