TOP INDIAN FINTECH FUNDING - 2023

RANK STARTUP SEGMENT AMOUNT ROUND INVESTORS

1 Payments USD 750 M Series D

2 Lending USD 400 M Series E

3 Insurtech USD 150 M Series A

4 Lending USD 120 M Series D

5 Lending USD 110 M Series D

6 Enabler USD 50 M Series B

7 Insurtech USD 40 M Series D

8 Lending USD 35 M Series E

9 Enabler USD 27 M Series B

10 Payments USD 10 M Seed

11 Enabler USD 9.7 M Series B

12 Payments USD 9 M Seed

13 Enabler USD 8.5 M Series A

14 Insurtech USD 7 M Seed

15 Lending USD 5.3 M Seed Krishna Bhupal’s Family Office

16 Enabler USD 5 M Seed

17 Wealthtech USD 5 M Series A

Investors outlined by box signify the lead investors of the

rounds mentioned. All investors have not been mentioned.
Data as of 31st Aug 2023 Page 4
AUG-2023

INDIAN FINTECH
FUNDING
REPORT
TABLE OF CONTENTS
Introduction 02 - 03

Top Indian fintech funding - 2023 04

Indian Fintech Funding 2023: Analysis 05

Notable Fintech investors - 2023 08

Funding Analysis: 2022 vs 2023 09 - 12

Fintech Funding Across India - 2023 13

Page 1
 Indian Fintech Unicorns
Highest Funded Startups in 2023

2015 1
4 startups received funding upwards of USD 1420 M.

NEW FINTECH SEEDS ARE SOWN, FORESHADOWING

2018 4
BENEFITS IN THE YEARS AHEAD — A HARVEST OF
INNOVATION AND GROWTH ON THE HORIZON.
The high tide of 2021 funding has calmed down and we are seeing
2020 2
interesting trends. While the numbers might indicate a temporary dip in

funding, it is essential to recognize the inherent resilience and

2021 14 adaptability of Indian Fintech Ecosystem.

Numerous factors will play a significant role in shaping the future of this

segment. These include impact of regulatory changes such as KYC

2022 5 amendment of 2023, guidelines for IT outsourcing, amendments in FLDG

within DLG guidelines, and the progression of the Personal Data

Protection Bill. Moreover, a wealth of innovative developments is also on

2023 0
the horizon, further contributing to the evolving landscape.

0 5 10 15

Page 2
 Indian Fintech Funding: 2017-2023
7,500
6948
Funding Amount
750
693
656 659

5127 590
5,000 568 582

510 502
500 491

2715
2,500 2287 316
1892 1804
1480 256
250 224

0
2017 2018 2019 2020 2021 2022 2023 86 78
51
Figures in USD Million Data as of 31st Aug 2023 17
0
January February March April May June July Aug
Funding till August is USD 1.8 B. While there are some segments that is
2022 2023
Figures in USD Million
getting funded like Payments and Lending we can also witness some Data as of 31st Aug 2023

sub-segments that is getting some attention like cross-border

payments, LaaS, Escrow payments, Account Aggregators, Collections,

and LOS/LMS.

Page 3
 TOP INDIAN FINTECH FUNDING - 2023
RANK STARTUP SEGMENT AMOUNT ROUND INVESTORS

1 Payments USD 750 M Series D

2 Lending USD 400 M Series E

3 Insurtech USD 150 M Series A

4 Lending USD 120 M Series D

5 Lending USD 110 M Series D

6 Enabler USD 50 M Series B

7 Insurtech USD 40 M Series D

8 Lending USD 35 M Series E

9 Enabler USD 27 M Series B

10 Payments USD 10 M Seed

11 Enabler USD 9.7 M Series B

12 Payments USD 9 M Seed

13 Enabler USD 8.5 M Series A

14 Insurtech USD 7 M Seed

15 Lending USD 5.3 M Seed Krishna Bhupal’s Family Office

16 Enabler USD 5 M Seed

17 Wealthtech USD 5 M Series A

Investors outlined by box signify the lead investors of the

rounds mentioned. All investors have not been mentioned.
Data as of 31st Aug 2023 Page 4
 Indian Fintech Funding 2023: analysis
PLAYERS THAT HAVE CAUGHT OUR EYES ! TOP 5 COMPANIES HAVE TAKEN OVER
2023 witnessed some new players that are creating some noise with some unique 85% OF THE TOTAL FUNDING
innovations and business models.
Out of the total 61 companies that have received funding for this
Stage Stage period, the top 5 companies have taken over 85% of the total
Seed Seed funding, leaving only 15% for the rest.
Anand Balaji

Total funding Location Total funding Location

USD 9 M Bangalore USD 16.2 M Bangalore

Anil Goteti Ashwin Bhatnagar

Founded year
Segment Investors
Founded year
Segment Investors RANK STARTUP AMOUNT SEGMENT
2019 Payments 2021 Enabler

Description 1 USD 750 M Payments

Provides Co branded credit cards along with
financial products and travel services for
young millennials & Gen-Z
Description
Provides APIs and Dashboard for businesses
2 USD 400 M Lending
to receive international payments

USP USP
10% rewards on every transaction as 3 USD 150 M Insurtech
No limits on transaction value
Scapia coins. 20% rewards on every hotel
Next-day payment
stay and flight booked.
Scapia coins are convertible with 5 Scapia
Instant foreign currency account opening 4 USD 120 M Lending
Competitive & transparent FX rates
Coins equalling 1 Rupee.
Provides ACH Debit, paperless Cheques
Zero forex markup, unlimited domestic 5
lounge access, zero joining fees.
and BNPL option USD 110 M Lending
no-cost EMI option titled 'Travel Now, Pay Customers
Later.'

Partner We work Teal Box Icliniq

Data as of 31st Aug 2023 Page 5

 ENABLERS SEE INCREASED FUNDING
RANK STARTUP SEGMENT SUB-SEGMENT AMOUNT ROUND Funding amount
1 LendingTech Collections USD 50 M Series B 16 8

2 LendingTech LOS/LMS USD 27 M Series B

3 PayTech Cross Border USD 10 M Seed

Payments

4 LendingTech N/A USD 9.7 M Series B

5 LendingTech LaaS USD 8.5 M Series A

98
6
PayTech Escrow USD 5 M Seed

7 LendingTech PayTech
BankingTech CRM USD 4 M Series A
BankingTech
8 Figures in USD M
BankingTech Digital Banking USD 2 M Series A

9
BankingTech Account USD 1.9 M Seed LendingTech is the most funded segment in Enablers this year.
Aggregator
10 Integration software provider for With growing MSME credit, scaling up of co-lending, and lending
USD 1.5 M Seed
accounting, CRM softwares
shifting to a multi-tier lending framework there are increasing
11 LendingTech Loan enablement USD 1.3 M Seed need for lending tech providers.
12
LendingTech LOS/LMS USD 1.1 M Seed Increase in open banking, BankingTech stacks moving towards
microservices-based architecture and growth of digital payment
13 PayTech Escrow USD 1 M Seed
transactions are making way for the growth of banking and
14 LendingTech LOS/LMS USD 0.4 M Seed PayTech.
15 LendingTech LaaS USD 0.2 M Seed

Page 6
 TRENDS AND REASONS FOR THE INCREASE IN FUNDING AMONG ENABLERS
“Banking away from banks” “Shift in Mobile banking dynamics ” “Movement to opensource
and cloud ”

Fintech
BankingTech Service
engine
Acquisition
engine
Growth
engine
Banks On- premise Cloud
Neo banks

“Shifting lending framework” “Scaleup of Co-lending platform” “Growing MSME credit”

LendingTech Banks

Banks Co-lending NBFC

platform
Co-lending NBFC Embeded Fintech MSME
Banks
platform finance/ LaaS

“Increase in Payments method” “Introduction of CBDC” “Complexity in B2B payments

PayTech
POS Payment
gateway

Business Business

CBDC
Card UPI

Page 7
 NOTABLE FINTECH INVESTORS - 2023
INVESTOR TOTAL INVESTMENTS INDIAN INVESTEE STARTUPS SEGMENT IN FOCUS

Lending, Payments,
4
Enabler
100LVX

Insurtech, Wealthtech,
3
Enablers

3 Lending

Lending, Payments,
3 Enabler

2 Insurtech, Payments

2 Lending

2 Payments, Insurtech

All investors have not been mentioned Page 8

 FUNDING ANALYSIS: 2022 VS 2023
SEGMENT-WISE ANALYSIS
LENDING witnessed 17 entities receiving USD 685 M. The highest-
funded companies in this segment are DMI Finance (USD 400M) Startups Funded
and KreditBee (USD 120M). The growth of this segment is being
100
94
driven by several regulatory initiatives, such as the DLG guidelines,
which encompass the FLDG guidelines and the RBI mandate for
CFSS. Alongside these regulations, the adoption of ONDC on a
75
large scale (50k+ Sellers in the network) coupled with a rise in 68
credit for MSMEs, is set to significantly boost the expansion of this
sector in the coming years.
50
PAYMENTS received USD 778 M funding to date going to 11 startups. 44
40
Most of it has gone to large players. This gives us an indication that the
investors decided to rely on the tried and tested segment this year.
Newer initiatives like UPI lite, credit card-based UPI payments, and 25 21
17
conversational payments will drive growth in this segment. 15
11
8 10
WEALTHTECH segment has seen little funding of USD 11 M by 8
0
startups. Focus on Fixed Income Instruments, Discount broking Payments Lending Wealthtech Insurtech Enabler
along with NSDL & CDSL data integration with AA will be a major
drivers for this segment. Figures for 2023 till 31st Aug.
2022 2023

Page 9
 We will also see players focusing on ESG investing and the growth
of embedded wealth players
Funding Amount The INSURTECH segment has seen funding of USD 206M by 10
2,500
players in which InsuranceDekho has alone received funding of
USD 150M. The major regulatory push in this segment in the last
2001
2,000 couple of years has been the "Insurance Amendment Act" (2021)
allowing a maximum FDI limit in insurance companies from 49%
to 74%. IRDAI is also taken transformational decisions such as the
1,500
1327 formation of Bima Sugam, the onboarding of Insurance companies
on the Account Aggregator and the use of Telematics for Motor
1,000 Insurance.
778
685
15 ENABLERS received funding of USD 123 M. Fueled by the
530
500 418 431 changing fintech landscape, This segment has the potential to
receive huge funding in areas of CBS, LOS/LMS, BAAS (Banking as a
206
123 service).
11
0
Payments Lending Wealthtech Insurtech Enabler

Figures in USD M

Figures for 2023 till 31st Aug. 2022 2023

Page 10
SERIES-WISE ANALYSIS 200
Startups Funded
182

A total of only 38 entities received pre-Series A funding and the

size of the round has seen a decline. Nevertheless, these startups 150

will be responsible for driving the next level of innovation. The

notable ones in this round are Xflow which received 10.2 M

100

Series A also witnessed some traction, with 11 startups being 63

funded for a total of USD 184 M. The InsuranceDekho continued to
50 38
be the top-funded in this round, raising 150M in 2023. (The 30 26
18
company had previously raised 100M in 2022) 11 12
6 0
0
Pre-Series A Series A Series B Series C Series D+
There are 6 startups in the Series B stage that has raised a total

USD 102 M in 2023 Figures for 2023 till 31st Aug.

2022 2023

Page 11
 Funding Amount
2,500
2283

Series C saw the least traction with no rounds this year.

2,000

Series D+ is the most funded round with PhonePe being the most

1455 funded with USD 550 M followed by DMI finance with USD 400 M.
1,500
The decrease in funding this year may be attributed to growing

inflation and macroeconomic tensions, but one must also note

1,000 882
816 827
that the ecosystem was flush with cash previous year. This year

there could be an inbound correction phase but nevertheless, the

500
320
184 market will recover.
64 102
0
0
Pre-Series A Series A Series B Series C Series D+

Figures for 2023 till 31st Aug.

Figures in USD M

2022 2023

Page 12
Fintech Funding Across India - 2023
Bangalore has remained the
epicentre of the Fintech Ecosystem
in India
NCR

15 $648 M 36%
startups funding

5
startups

MUMBAI BANGALORE
10 $113 M 6% 24 $943 M
startups funding
startups funding
1%

PUNE 52% startups

2 $27 M
startups funding

OTHERS

6 $71 M
startups funding

Page 13
Acknowledgments
EXECUTIVE EDITOR
Sameer Singh Jaini
Founder & CEO, The Digital Fifth
sameer@thedigitalfifth.com
A Digital Strategist focused on removing friction, Sameer has over
two decades of experience spanning across Asia, Europe and
America for which he is recognised amongst the Fintech Asia Top
100 by nextmoney.org.
Sameer has been a part of core teams responsible for setting up
Kotak Mahindra Bank and Bharatiya Mahila Bank, as well as
leading digital initiatives for leading banks. He has also won
multiple Best CIO and Innovation Awards, including one for the
industry’s First Aadhaar based ATM.
Building on this wealth of experience, Sameer founded The
Digital Fifth, a fintech consulting firm. He now mentors Fintech
startups on their Business Model and collaborates with entities
across the BFSI domain to drive on-the-ground digital initiatives
in key impact areas like lending, digital banking, payments,
wealth management and mobility. Sameer also strives to
deepen the Fintech ecosystem by propelling partnerships
between upcoming players and incumbent Banks & NBFCs.
Sameer envisions that Fintech in India has just started, and this
is simply Phase I of many more to come.
RESOURCES
Funding and acquisition data points have been sourced from
Tracxn.
The Digital Fifth: Consulting
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Developing business and platform models for embedded finance
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Partnerships connect with lenders, FIs
Program Management for Digital Transformation Initiatives
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Security & Compliance Services
Development of information and cyber security policy framework
Technology risk management service
Open Banking Advisory Services
Technical governance and compliance

Development of open banking strategy and roadmap Develop Neo

Bank/Digital Bank model and partnership Digital Research & Content Management
API management and technology consulting services
Embedded Finance Deep segmentation and technology research and report development
Content-based growth and marketing revitalization
Meet the team
We are working towards our dream of “Changing the way money
moves”. Along the journey, we have added services over the last 12
months like
Embedded Finance Strategy - Execution and Scaleup
Digital Product Management
Compliance services including Digital lending guidelines, IT
outsourcing, cybersecurity etc
With a focussed team, we are scaling our capabilities and capacities
- Slowly and Steadily.

meet the founders

Sameer Singh Jaini Shashank Shekhar Sreekant Rudrabhatla

Founder & CEO Cofounder Co-Founder, Head - Sales
Head of Consulting and Partnerships
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