BankBazaar has emerged as the highest-funded startup in April, securing $9.6 million in investments. The fintech sector in India attracted $29 million in April, bringing the total investments in CY2024 to $203 million, according to data compiled by BFSI consulting firm The Digital Fifth.
A significant portion of this funding was directed towards companies specializing in payment services, particularly within the cross-border payments sector. Additionally, startups in the loan marketplace segment also received investments during this period.
In April, nine startups secured funding, primarily at the seed stage. Notably, Gurgaon accounted for 33% of the funded companies. Besides BankBazaar, other startups that secured funding include Insuretech startup Claimbuddy, cross-border payments company BriskPe, and Paytech enabler Innoviti.
The infusion of capital for these companies is expected to accelerate product development, market expansion, and the potential for strategic partnerships or acquisitions. The investments reflect investors’ interest in supporting innovative players across various segments.
Cross-border payments, known for their complexity, high costs, and lack of transparency, present significant opportunities for innovation. Startups like BriskPe are leveraging the OPGSP framework to simplify recurring small-value cross-border payments for MSMEs, making them more transparent and faster.
So far in CY2024, 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 million, compared to $203 million this year, indicating a slowdown in the fintech investment landscape. The Digital Fifth’s analysis shows that only the most groundbreaking innovations have received funding, signaling investors’ increasing selectivity. Despite this, Bangalore remains at the epicenter of India’s fintech ecosystem.