Money & Banking

Fintech investments in India fell 38% in Q2: S&P Global Market Intelligence

Our Bureau Mumbai | Updated on August 25, 2020

Ban on Chinese apps may further hamper investments

Investments in the country’s fintech sector declined in the second quarter of the year amidst a government clampdown on foreign investments, according to a report by S&P Global Market Intelligence.

“Fintech investments in India declined 38 per cent to $339 million as the government continues to scrutinise and clamp down on foreign investments,” the report released on Tuesday said, adding that the recent ban on China- owned apps may further contribute to withering investments from prominent Chinese venture capitalists.

“In the first quarter, India accounted for 42.9 per cent of fintech investments in APAC but in the second, investors shifted their bets to other regions,” it noted.

South-East Asian and Australian fintechs attracted $455 million and $371 million, respectively, roughly thrice and twice the amount raised in the previous quarter.

Overall, investments in private financial technology companies in the Asia-Pacific grew 9.1 per cent to $1.4 billion in the second quarter, the report said. However, deal activity remained flat, with 107 transactions in both quarters.

The Centre had, in June, banned 59 Chinese mobile applications including Tiktok and WeChat in the midst of increased tensions between the two countries following border clashes.

Published on August 25, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like