FinTech Sector Attracted $2.37 Billion in funding in 2020, which Start-ups were Gainers?

The FinTech sector raised the second highest investment, close behind E-commerce. The FinTech Industry gained $2.37 billion overall in 2020.


Indian startups received an estimate of $10.14 billion in funding via more than 1,200 deals in 2020 in spite of the COVID-19 pandemic (Source: HexGn, Consulting firm). The total investment received in 2020 is lower than the amount received in 2019 ($14.5 Billion), the number of deals surged by 20 per cent.

The FinTech sector raised the second highest investment, close behind E-commerce. The FinTech Industry gained $2.37 billion overall in 2020.  They had raised almost $1.7 billion within the first six months of 2020 which was almost double from 2019’s $726.6 million during the same period, as reported by KPMG.

COVID-19 has transformed the banking and financial sector leading to more and more investments in FinTech start-ups with the digitalisation of the Finance Industry. Navi Technologies raised $398 million, followed by Pine Labs which raised $300 million and PaySense which raised $185 million through acquisitions. Other FinTech Start-ups who gained during 2020 funding were:

Jai Kisan:

Mumbai-based rural fintech startup Jai Kisan raised $300 million in a Pre-Series A round led by Arkam Ventures along with NABVENTURES Fund I. It has disbursed over $500 million in loans of top credit quality to 5000+ borrowers across 10 states in the past six months.

Setu:

In April 2020, the Bengaluru-based FinTech API Infrastructure provider startup Setu raised $15 million in a Series A financing round led by Falcon Edge and Lightspeed Venture Partners US

NIRA:

NIRA offers small-ticket loans to blue and grey-collared workers through its mobile app and website. In April 2020 it raised $2.1 million in Pre-Series A round from existing and new angel investors in the UK, Europe and India.

Khatabook:

The Bengaluru-based utility solutions provider helps micro, small, and medium-sized businesses track business transactions. It closed a $60 million Series B round of funding led by B Capital Group in May 2020. 

Nium:

Global FinTech Startup Nium (before:InstaReM) raised a round of equity funding from new investors Visa and BRI Ventures in May 2020 to further build its diversified payment infrastructure.

Recko Enterprise:

Recko raised $6 million in Series A funding led by Vertex Ventures in April 2020. This funding will further their hiring, expansion outside India and product development.

Razorpay:

Business-focused payment gateway and neo banking platform Razorpay raised $120-150 million in a fresh round with Singapore’s GIC and existing investors. It also joined the Unicorn List of Startups.

MoneyTap:

With their gross revenue increasing from $6.5 million in 2016 to $24.5 million in fiscal 2020, MoneyTap has become very successful. In January 2020, they raised INR 500 Cr.

YAP:

The API FinTech platform YAP raised $4.5 million in its Series A round led by Singapore-based venture capital firm BEENEXT in April 2020 which it will use to build technology and enhance API products.   Currently providing API-based financial services, the startup raised over $1 million via angel financing in 2020.

Smruthi Krishnan
Smruthi Krishnan
Smruthi interviews and writes on inspiring entrepreneurs and the success stories of start-ups. She is currently pursuing Economics major from Delhi University.

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