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Fintech funding in India doubled to $3.7bn in 2019
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SME Times News Bureau | 20 Feb, 2020
India became world's third largest financial technology (fintech) centre
-- behind only the US and the UK -- in 2019 as fintech investments
nearly doubled to $3.7 billion from $1.9 billion in 2018, an Accenture
study said on Thursday.
The number of deals was up slightly to
198 last year from 193 in 2018, said Accenture analysis of data from CB
Insights, a global venture-finance data and analytics firm.
The
vast majority of funds raised last year in India went into payments
startups (58 per cent), while insurtechs raked in 13.7 per cent of the
investments and fintechs in lending accounted for 10.8 per cent of the
total, the data showed.
One97 Communications, the parent company
of digital wallet Paytm, raised $1.66 billion from two separate
transactions, while PhonePe tapped investors for about $210 million --
also from two separate deals -- and full-stack financial services
company Razorpay raised $75 million.
Other large transactions
included $282 million insurtech PolicyBazaar raised from two deals and
the $120 million from credit card payments company CRED, the findings
showed.
Investments in payments companies more than tripled to
$2.1 billion from about $660 million in 2018, while funding into
insurtechs also rose strongly, up 74 per cent to $510 million. "There's
a lot brewing in India's fintech ecosystem and this steady flow of
funds shows investors' confidence in the industry's future growth
potential," said Sonali Kulkarni, Managing Director - Financial
Services, Accenture in India.
"The increase both in deal value
and the number of deals is a good indicator of what's to come and bodes
well for the future development of cutting-edge financial technology in
the country," she added.
Investment in fintech ventures rose
sharply in most major markets in 2019, led by gains in the US and the UK
and emerging economies such as India and Brazil. Despite those
gains, the total value of fintech deals globally dipped 3.7 per cent, to
$53.3 billion from $55.3 billion in 2018, boosted by a record $14
billion from Ant Financial and three other multi-billion-dollar
transactions from Chinese companies. Fintech deals in China
dropped 92 per cent in 2019, to $1.9 billion, with the $145 million
financing from insurtech Shuidi Huzhu in June being the country's
largest transaction.
"Despite strong demand for fintech
globally, it's likely that, as startups become more mature, investments
will flow to fast-growing economies, where there's still a huge,
unaddressed consumer and corporate market thirsty for innovations," said
Julian Skan, a senior managing director in Accenture's Financial
Services practice.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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