Indian fintechs raised around $3.18 billion in equity funding in 2019-20 but the fundraising activity slowed after the spread of Covid-19 and the subsequent nationwide lockdown, shows the data compiled by the Reserve Bank of India. In April- June of FY21, Indian FinTechs have raised over $200 million.
The distribution of the funding of $3.18 billion raised during 2019-20 was highly skewed with the top 10 companies (by equity funding) accounting for approximately two-thirds of the total funding, the RBI said. Paytm raised around $1 billion in November 2019, which accounted for almost a third of the entire year’s fintech funding.
Also, most of the top fintech fundraisers operate in the payments arena.
According to the RBI, banks, which earlier viewed fintechs as disruptive forces, are looking at them as enablers in banking and finance. However, fintechs will confront several opportunities and challenges in the future.
The increasing popularity of Fintech's can exacerbate concerns relating to data privacy,use, and protection. Also, there is a need to ascertain the impact of fintech on financial stability, due to higher potential for system-wide risk with its expansion.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU