India's fintech startups beat global slowdown – funds raised doubled in the first half of 2020

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  • India’s fintech startups in the first six months of 2020 have raised almost $1.7 billion, double from last year’s $726.6 million, according to a KPMG report.
  • Interestingly, India’s fintech startups saw the doubling investment even at a time when the global fintech investment saw a slowdown.
  • India saw a total of 70 deals in H12020.
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India, which is poised to be the next big opportunity in the internet economy, has seen the likes of Facebook, Google commit big money during the pandemic. Reaping the benefits of the digital transformation is also the country’s fintech startups, who are accelerating the growth of payments and financial services.

Investors have not missed out on this chance of digitising and gaining customers in one of the most populated countries in the world. India’s fintech startups in the first six months of 2020 have raised almost $1.7 billion, double from last year’s $726.6 million during the same period, according to a report by KPMG. The total number of deals in the first half of the year stood at 70.

BI India/KPMG

The fast growing Indian fintech scene has also seen global players make India their focus with the likes of Amazon investing in digital wallet, insurance and most recently, gold investment.
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“COVID-19 has in fact fast tracked the digital economy and significant investments are being made by established banks and insurance companies, which can also lead to acquisition and more investments from investors,” Sanjay Doshi, Partner and Head, Financial Services, KPMG in India said in a statement.

Interestingly, India’s fintech startup ecosystem has doubled its fundraise at a time when the global fintech investment saw a slowdown with mergers and acquisitions put on hold. According to KPMG, global fintech investment stood at $25.6 billion by June 2020. But the number for the year could be staring at a three-year low.

BI India/KPMG

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Some of the big investments that contributed to India’s doubling growth were

Navi Technologies$398 million
Pine Labs$300 million
PaySense$185 million (acquisition)

India is currently home to over 2,174 fintech startups.

SEE ALSO:

These are the 20 Indian startups in the CB Insights list of 250 world’s most promising fintech companies

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