Indian financial companies raise $1.2 billion in Q1 2023, a 55% decrease year-on year

According to a report released on Thursday, Indian financial companies received $1.2 billion in investments in the first quarter of 2023, which is 55% less than the $2.6 billion raised in the same period last year.

Ano firms from the fintech area went public in Q1 2023, and there were no new members in the unicorn club.

However, this represents a 126% increase over the $523 million raised in the fourth quarter of 2022, according to data given by worldwide SaaS-based market intelligence platform Tracxn.

Late-stage investments totaled $977 million in the first three months of 2023, a 325 percent increase over Q4 2022 but a 44 percent decrease from Q1 2022.

Early-stage funding was $177 million for the quarter, down 30% and 76% from Q4 2022 and Q1 2022, respectively.

According to the study, seed-stage funding totaled $30.2 million during this quarter, a decrease of 21% and 74% from Q4 2022 and Q1 2022, respectively.

In the first quarter, India was the second-highest financed location after the US, and it ranks among the top five geographies in terms of total fundraising activity.

“However, funding remains on a declining trend when compared to previous years, despite an increase in funding over the past few quarters,” the researchers noted.

The most active investors in the country’s fintech companies are Sequoia Capital, AngelList, and Y Combinator.

The top seed-stage investors were Y Combinator, 100X.VC, and LetsVenture. The top early-stage investors were Xceedance, Telama Family Office, and CourtsideVC, while the top late-stage investors were Premji Invest, General Atlantic, and TVS Capital Funds.

In the first three months, the industry saw six $100 million fundraising rounds. During this time, companies like as PhonePe, Mintify, Insurance Dekho, and KreditBee raised capital in excess of $100 million.

Bengaluru fintech startups raised the most money, $796 million, followed by Mumbai and Gurugram, which raised $222 million and $151 million, respectively, during the quarter.

The number of acquisitions increased slightly. According to the research, the industry had 11 acquisitions in Q1 2023, compared to six acquisitions in Q4 2022.