India secured the third position globally in terms of funding raised for the fintech sector in the first quarter (Q1) of this year, a report showed on Friday.

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Total funding received by the fintech sector increased by 59 per cent in Q1 2024, compared to Q4 2023, emphasising the robustness of the Indian fintech landscape amid a dynamic economic environment.

Q1 2024 witnessed a total funding of $551 million compared to the $346 million raised in the previous quarter, according to the report by Tracxn, a leading market intelligence platform.

Bengaluru led the funding in the Indian fintech space, followed by Mumbai and Hyderabad.

“The sustained investor interest emphasises the importance of nurturing startups and R&D, aligning with the 'Startup India' Initiative. This surge reflects the industry's dynamism and innovation, positioning India as a leading global fintech player,” said Neha Singh, co-founder of Tracxn.

Peak XV Partners, Y Combinator, and LetsVenture emerged as the leading investors in the sector.

The fintech growth as the Indian economy exhibited a robust performance in the previous quarter, with a growth rate of 8.4 per cent.

According to the IMF, India will become the third-largest economy in the world by 2027, with a GDP of over $5 trillion.

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