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Fintech M&A Activity Led By Lending Sector In 2023; Start-Up Incorporations Drop By 70% From 2021

OutlookIndia · 9m

Lending fintechs accounted for 30% of all fintech acquisitions in 2023, reflecting increased regulatory scrutiny in the lending sector. Payments and Wealthtech were the other sub-sectors that saw high acquisition activity. The lending sub-sector's surge in acquisitions aligns with the tightening regulations in the space. In total, there were around 30 acquisition deals in the Indian Fintech space in 2023. Additionally, there has been a 70% decline in the incorporation of new fintech start-ups. The majority of acquisitions were done by larger companies for product enhancement and expanding capabilities. The fintech sector heavily relies on venture capital backing for sustainability. In the global market, fintech companies raised $46 billion between Q3 2022 and Q3 2023, indicating a focus on business fundamentals.