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Fintech firms are investors' new favourite

The sector witnessed a 167 per cent rise in deal value in 2015 to $617 million as against $231 million in 2014. Deal volumes saw a rise of 82 per cent from 38 deals in 2014 to 69 in 2015.

BT Online        Last Updated: July 26, 2016  | 19:57 IST
Fintech firms saw 167% rise in fund raising last year: Report

Financial technology companies have emerged as the frontrunners when it comes to fund raising, according to a report by News Corp VCCEdge India.

The sector witnessed a 167 per cent rise in deal value in 2015 to $617 million as against $231 million in 2014. Deal volumes saw a rise of 82 per cent from 38 deals in 2014 to 69 in 2015.

Online platforms offering wealth management and credit services are fuelling fintech investments by the private equity, venture capital and angel community.

Of late, the sector has attracted $186 million across 24 deals. Since 2012, the fintech sector raised $1,194 million across 181 deals, the report by the financial research platform of News Corp VCCircle said.

Investors have found the fintech sector to be a lucrative destination as 23 deals worth $184 million were recorded in H1 CY2016.

73 fintech companies received funding to the tune of $803 million in CY2015-2016YTD.

Last year saw such online platforms attract investor funding to the tune of $344 million as against $41 million in 2014. There were 31 deals recorded - a rise of 182 per cent  when compared to just 11 deals in 2014

In 2016 so far, there have been 13 deals amounting to $81 million. Since 2012, such portals have attracted over $500 million investor funding spread across 66 deals.

Last year, General Atlantic and Temasek Holdings Advisors India invested $200 mn in IndiaIdeas.com in the top deal of fintech sector. IndiaIdeas.com owns payment services portal Billdesk. In the online personal finance segment, Walden International India, Sequoia Capital India Growth Fund II, Eight Roads Ventures, Amazon.com and Mousse Partners made a venture capital investment of $59.9 million made in the Chennai-based A and A Dukaan Financial Services. A and A Dukaan Financial Services owns the online platform BankBazaar.com.

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