While there has been a funding winter in fintech and tech startups over the past year, early-stage deal funding has seen a rise, while late-stage deal funding has declined. FinTech funding witnessed a significant increase in June, compared to a notable dip the previous month.
The fintech sector turned the corner at the closing of its third month on a new financial year, with investments over 3 times to 14 in March versus less than five a month each since January. June saw 18 rounds of FinTech funding with overall value amounting to USD587.4 million, as per latest update from 1Lattice.
This number was significantly higher than the USD 186.2 million being raised in 12 rounds last May and the USD 320.7 million raised by the same amount of deals in April, though numbers for June were more or less similar to what was closed fig in March -where about USD 591 million was picked up through 16 rounds.
This is also over 3X higher on a year-on-year basis, with the sector having raised about USD 190 million from 16 deals in June of the last year.
The highest amount raised in June 2024 was by fintech company Ugro Capital, which mopped up about USD 151 million. According to the data revealed by Privco, Samena Capital and Aregence have invested in Ugro Capital.
Kogta Financial India, which raised close to USD 148 million from Multiples Private Equity, after Ugro Capital. Ummeed Housing Finance and AYEFin are also FinTech companies which raised significant amounts this year with USD 90 million, USD 76 million and USD 30 million respectively.
In 2021, the FinTech sector raked in a cumulative total of USD 7,475 million and it raised USD 4,041million for January — December of this year. The sector managed to more than USD 2,982 million across the same calendar year last cycle of January through December 2023. In CY24 a total amount of USD 2373 million has been raised collectively in the first half duration of the calendar year (January—June 2024).