FinTech space India is the second-highest funded geography after the U.S. in Q1 2023, and occupies a spot in the top five geographies in terms of total funding activities. However, the funding is still on a declining trend when compared with previous years, although there has been an uptick in funding over the past few quarters. The sector recorded late-stage investments of $977 million in the first three months of 2023, a spike of 325% when compared to Q4 2022 but a drop of 44% from Q1 2022. Early-stage funding 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.
FinTech startups in the country attracted investments worth $1.2 billion in during the first quarter of 2023, 55% lower than $2.6 billion raised in the first quarter of 2022. However, this is a sharp jump of 126% when compared with $523 million raised in the fourth quarter of 2022. 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.
India continues to be an attractive market for FinTech investors for several reasons. Digital payment solutions have received widespread acceptance within the country. According to numbers released by the Reserve Bank of India (RBI), 128 million retail digital payment transactions worth $600 billion were processed in January 2023 alone.
Source: provided by Tracxn, a SaaS-based market intelligence platform.
The fintech industry in Israel is constantly evolving and improving, and 2023 is no exception. It is predicted that the fintech space will multiply and reach US $174 billion in 2023 and the key trends driving this growth will be AI & Machine Learning; Embedded finance; SaaS; Open Banking; IoT; and Blockchain. As of 2022, approx. 550 fintech startups are operating in Israel which by global standards.
Companies, interested to know about Fintech solution offered by Israel companies, please contact Ms. Kavitha, Trade Officer-
Consulate General of Israel, Bangalore
Tel: +91-80-49406-516, Email: Kavithas@israeltrade.gov.il