India beats China in fintech agreements for the second quarter
Chennai: a single agreement: Paytm's $ 1.6 billion fundraiser helped India maintain leadership for the second consecutive quarter over China in the fintech space in the period from October to December. India's total financing for the quarter is $ 1.8 billion. But for investment, the financing of India would be $ 212 million, while China would be $ 298 million, said research firm CB Insights.
In the previous quarter, India beat China for $ 13 million. India's financial technology agreements were driven by investments in new UPI-based companies, payment companies, etc. While the quarter was the highest in India, it was the lowest in China in 2019.
“Prime continues to focus on being the main investor of fintech at an early stage in the country, with companies such as Ezetap, Happay, Niyo, KredX, Moneytap and OTOCapital, all are growing very well in their respective areas. In the future, with IndiaStack, GST and UPI reaching a significant scale, we will continue to support the new Fintech companies in all areas, ”said Sanjay Swamy, managing partner of Prime Venture Partners.
However, digital loans experienced a slowdown in investment. Given the drop in digital loans, some investors add that 2019 has been a mix in a booming investment space for the financial technology sector. Sneha Rajan, vice president of Unitus Ventures, said that while investments were the highest in history, capital for fintech lending companies was depleted due to the slowdown in the NBFC market. The fund is optimistic in the sector and is now analyzing different subsectors within the space. “After having invested in education and micro loans, digital group savings, last mile distribution and new businesses, we are now looking for companies that digitize the MSME space. This could range from helping small businesses sell online, better collect accounts receivable or finance invoices digitally, ”he added.