New Delhi: Fintech companies, which are at the intersection of financial services and IT, witnessed 23 deals worth USD 184 million, registering a 28 per cent fall in value terms over the last year’s period , says a report. In the first six months of 2015, the fintech sector had witnessed 34 transactions worth USD 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 USD 500 million investor funding spread across 66 deals about 50 per cent of the fintech investment deal value.
In 2016, so far, there have been 13 deals amounting to USD 81 million. Since 2012, such portals have attracted over USD 500 million investor funding spread across 66 deals, the report said.
The Private Equity deal of USD 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 sector in 2015-16.
“While the degree of adoption and regulatory stipulations may pose hurdles, the growth we see in investments in fintech space show us there is a strong investor appetite for companies with unique business models that address the inefficiency of legacy systems and the mechanism to disburse credit,” Nita Kapoor Head – India, New Ventures, News Corp and CEO, News Corp VCCircle, said.
The top deal in online personal finance segment (2015-16), was the investment of USD 59.9 million made by Walden International India, Sequoia Capital India Growth Fund II, Eight Roads Ventures, Amazon.com and Mousse Partners in Chennai-based A and A Dukaan Financial Services which owns the online platform BankBazaar.com, the report said.
