India to emerge as hotbed for fintech startup investments in Q1 2020

Friday 22 May 2020 07:56 CET | News

In the first quarter (Q1) of 2020, Indian fintech startups have outpaced their Chinese counterparts in terms of both deal value and volume, says GlobalData.

China’s fintech startup ecosystem survived as the breeding ground for venture capitalists (VC) over the last two years despite India marginally surpassing in the third quarter (Q3) of 2019. An analysis of Deals Database of GlobalData’s Disruptor Intelligence Center discloses that the Indian fintech startups attracted VC investments of more than USD 330 million in Q1 2020 against China’s approximately USD 270 million. In terms of deal volume too, the number of VC investments in India stood at 37 while China managed to close only 26 deals.

Seed funding of fintech startups accounted for many of the investment deals in India while China has shifted its bet from seed-stage fintech startups to scaling stages. Startups in the payments and lending sectors led the number of investments in India, whereas China’s deals were more in cross-sector fintech startups. Fintech startups in the analytics tech area represented the highest number of deals in India as well as China.

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Keywords: fintech, investment, India, China, GlobalData, study, lending, payments , seeding, scaling, VC
Categories: Banking & Fintech
Countries: India
This article is part of category

Banking & Fintech