The Indian FinTech sector experienced a 43% decline in deal activity in the first half of 2024 compared to the previous year. Only 149 deals were completed, down from 262 in H1 2023. Funding also fell significantly, with companies raising just $2.38 billion, a 29% drop from the $3.33 billion raised during the same period last year.
Despite the decrease in the number of deals, the average deal size increased from $12.7 million to $16 million. This suggests that investors are now focusing on larger deals with greater growth potential.
Among these deals, Svatantra, a technology-driven microfinance company, secured the largest funding round in India with a $230 million private equity investment. Svatantra provides affordable financial and non-financial solutions to women entrepreneurs and stands out as a leader in the microfinance sector. With over 17,000 employees, Svatantra serves more than 4.2 million customers across 20+ states in India.
The company is notable for being the first microfinance institution in India to implement 100% cashless disbursements and to launch a comprehensive customer-facing app that aligns with client behaviors.