India's Fintech Sector Rakes In Over $2 Billion In First Half of 2021: KPMG Report

The total investment into India's fintech sector, moreover, has already crossed 90 per cent of the 2020 figure. Last year, the sector had attracted nearly $2.253 billion in investment.

India's fintech sector attracted over $2 Billion in investments in the first half of 2021, a recent report by a global accountancy firm has stated. According to KPMG's 'Pulse of Fintech H1'21' report, a total of $2.055 billion flowed into the sector, which is $411 million more than the amount recorded in the first half of 2020. The total investment into India's fintech sector, moreover, has already crossed 90 per cent of the 2020 figure. Last year, the sector had attracted nearly $2.253 billion in investment.   "Fintech's business model, with its inherent benefit of leveraging data besides providing great customer experience, are the biggest attraction for investors," said Sanjay Doshi, Partner and Head - Financial Services Advisory, KPMG in India, on the boom in investments into the sector. He added that segments such as e-commerce and digital financial services have got a significant boost due to the social distancing limitations during the Covid-19 pandemic.   Some of the fintech companies that have received funding in this period include Pine Labs' ($285 million via Private Equity funding round), Cred ($215 million), RazorPay ($160 million), KreditBee ($153 million), OfBusiness ($110 million) and BharatPe ($108 million) – the last five by Venture Capitalist funding rounds.   Insuretech – technology-driven insurance start-ups which are a subset of the fintech sector –  has emerged as a major attraction for investors, the report noted. Notable insurtech start-ups that have received Private Equity or Venture Capital funding this year include Turtlemint ($46 million), RenewBuy ($45 million), and Digit Insurance ($18 million).