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 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.

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.