FINTECH FUNDING DIMINISHED BY 55% IN THE MARCH QUARTER; Y COMBINATOR AND LETSVENTURE TOP INVESTORS: TRACXN
- ByStartupStory | April 13, 2023
Fintech startup funding fell by 55% between January and March 2023 and the corresponding period the previous year, indicating that the sector’s deals are still declining. According to data from market intelligence company Tracxn, fintech investments totaled $1.2 billion in Q1 2023, which is $55% less than the $2.6 billion raised in Q1 2022. In the quarter, late-stage investments fell to $977 million, a 44% decrease from the first three months of 2021.
The quarter saw a year-over-year decline of more than 76% in early-stage funding deals, and a 74% decline in seed-stage deals compared to 2021. Contrary to the general trend, early-stage investments have increased in the last few quarters in other industries, including healthcare.
The amount of money invested in fintech increased by 126% from the final quarter of 2022. India ranked among the top five geographies in terms of total funding activities in Q1 and was the second-highest funded geography globally for fintech funding. The fintech ecosystem experienced a relatively quiet quarter as far as acquisitions and public listings are concerned. Along with Sequoia Capital, AngelList, and LetsVenture, Y Combinator is one of the most active investors in the sector. It also ranks among the top seed-stage investors and most active investors. 100X.VC was a top seed-stage investor in Q1 2023, and Premji Invest was among the top investors. The top early-stage investors were Xceedance, Telama Family Office, and CourtsideVC, while Premji Invest, General Atlantic.
In the first quarter of 2023, six funding rounds totaling $100 million took place. During this time, businesses like PhonePe, Mintify, Insurance Dekho, and KreditBee raised close to $100 million in funding.
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