January-June Fintech deals dip 28% to $184 million
Fintech firms, which are at the intersection of financial services and IT, saw 23 deals worth $184 million, a 28 per cent fall in value terms over the last year’s period. In the first six months of 2015, the fintech sector had witnessed 34 transactions worth $255 million. According to News Corp VCCEdge India FinServ Insights, online platforms offering wealth management and lending/credit services are fuelling fintech investments by the PE/VC/angel community. Since 2012, such online financial services portals have attracted over $500 million investor funding spread across 66 deals about 50 per cent of the fintech investment deal value. In 2016, there have been 13 deals amounting to $81 million.
Since 2012, such portals have attracted $500 million investor funding spread across 66 deals. The PE deal of $200 million invested by General Atlantic and Temasek Holdings Advisors India in IndiaIdeas.com which owns payment services portal Billdesk was the top deal in financial services in 2015-16. “While the degree of adoption and regulatory stipulations may pose hurdles, the growth we see in investments in fintech space shows us there is a strong investor appetite for firms with unique business models that address the inefficiency of legacy systems and the mechanism to disburse credit,” News Corp Head (India-New Ventures) & News Corp VCCircle CEO Nita Kapoor said.