Fintech sector sees 23 deals worth $184 million till June this year

NEW DELHI: Fintech companies, which are at the intersection of financial services and IT, witnessed 23 deals worth $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 $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, so far, there have been 13 deals amounting to $81 million.

Since 2012, such portals have attracted over $500 million investor funding spread across 66 deals, the report said.

The Private Equity 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 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 $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.