Express news service
BENGALURU: India’s vibrant fintech ecosystem has outstripped some fierce competitors, including China, in fundraising for the second quarter of 2021, according to a recent study by S&P Global Intelligence. India topped the value of fintech finance to $ 1.26 billion on 54 deals for the quarter, while China saw its investment drop to $ 239.8 million, according to the report. The Chinese government’s strict crackdown on private internet companies, which has led to the country’s exodus of cash deployment, has benefited Indian businesses.
Some of the biggest deals in the Asia-Pacific region have been led by Indian companies, including the merchant payment platform Pinelabs (which raised $ 285 million), SaaS platform Zeta ($ 250 million) , credit card payment startup CRED ($ 215 million), payment gateway Razorpay ($ 160 million) and tech startup Groww ($ 83 million).
How is India performing in relation to the Chinese fintech scene?
Upcoming Initial Public Offerings (IPOs), including those from Paytm and Policy Bazaar, are expected to further strengthen the outlook for India’s fintech industry. One 97 communications, based in Noida, the parent company of Paytm, has filed a $ 2.22 billion IPO application while insurance firm Policy Bazaar seeks to raise $ 809.4 million via a imminent listing in October.
Meanwhile, Chinese fintech firms saw the value and activity of their funding decline, attracting just $ 239.8 million out of 16 deals in the second quarter, up from $ 351.4 million out of 21 deals in the quarter. previous. Recent regulatory changes plaguing the listing outlook for Chinese tech companies could further weigh on fintech investments in the country, Celeste Goh, market intelligence analyst, wrote in a blog post. Experts predict that the trend of investment in China’s fintech sector will reverse in the coming quarters due to the proposed easing of regulations.
Indians in the midst of a wave of acquisitions
The free flow of capital in the first half of 2021 from private venture capital / equity firms has given India’s leading FinTech companies enough firepower to acquire niche companies. Rich in fresh funds, the payment gateway acquired TERA Finlabs in July to expand its lending business. Razorpay is also seeking further acquisitions in B2B SaaS companies with basic accounting and expense management skills to strengthen its offerings.