VCs didn’t pump as much money into India’s fintech startups as before

The second quarter of 2016 didn’t see an uptake in dollar value of VC investments into the country’s fintech startups according to Pulse of Fintech, a quarterly global report by KPMG and CB Insight.

While investments in fintech startups fell by 49%, all is not lost. While there were no mega rounds, the number of deals remained consistent with last year’s figure. Startups in the SME and P2P space based out of Bengaluru and Mumbai clinched the top deals.

"VC investment in fintech remains strong in India. We continue to see investment in key areas such as payments and mobile wallet as well as increased momentum in emerging areas like robo advisory," Neha Punater, Partner and Head of Fintech at KPMG India said.

While India only saw a drop in dollar value, the second quarter saw a drop in both the number of deals and the quantum of deals world over. VC-funded fintech companies raised $2.5 Bn across 195 deals. That’s a solid 12% drop in deal volume compared to Q1 of 2016. The good news is that the report predicts that investments in fintech companies are expected to exceed 2015 results.