This week on Startup Street, a look at how the Covid-19 crisis has impacted fintech funding in the first half of 2020. The IIT Alumni Council says it’s setting up six research centres for startups across the country. And a famous Indian cricket commentator backs a fantasy gaming startup. Here’s what went on:
Fintech Investments Remain Solid In India
Investments in India’s financial technology firms continued to grow in the first six months of 2020 even as the Covid-19 pandemic sent economic activity tumbling.
Fintech investments till June 2020 more than doubled over the same period last year to $1,700 million, according to KPMG’s bi-annual Pulse of Fintech report. While fintech investment is down on a quarterly basis, the 134% year-on-year rise suggests that India will remain a major opportunity for investors in the long term, the report said.
“Covid-19 has in fact fast-tracked the digital economy and significant investments are being made by established banks and insurance companies, which can also lead to acquisition and more investments from investors,” said Sanjay Doshi, head of Financial Services Advisory at KPMG India.
Three big fintech deals during this period made the headlines: a $398 million angel investment in Navi Technologies led by Flipkart co-founder Sachin Bansal, a $300 million fundraise by Pine Labs and the $185 million acquisition of PaySense by Netherlands’ PayU. Bengaluru-based Navi’s angel investment, was in fact, among the top 10 biggest fintech deals in the world during this time.