Bengaluru is the only Indian city to be listed among the top 15 cities globally in terms of attracting highest VC investments in the fintech sector.
The city currently ranks 8th globally. During the first six months of 2021, Bengaluru has attracted $800 million VC funds in the fintech sector. Between 2016 and the first half of 2021, the city has attracted a total of $5 billion VC funds in the fintech sector, according to research from London & Partners, a not-for-profit social enterprise, and Dealroom.co.
The new research also shows that India ranked fourth globally for fintech VC investments so far this year, with Indian-based fintech companies receiving $2.3 billion in the first six months of 2021, up from $1.5 billion in January to June 2020. The US ranked first with $26.3 billion, followed by the UK at $5.7 billion and Germany at $2.4 billion.
The bumper start to the year for VC funding sees the UK capital further cement its position as a global fintech hub, with investors pumping $5.3 billion into London-based fintech companies – an increase on all previous full year investment figures for London’s fintech sector and over 2.5 times more VC investment than any other European city.
India has also seen an increase in fintech unicorns in 2021, adding four to its list and taking the total number of Indian fintech unicorn companies to nine. Bengaluru is home to four of these fintech unicorns, including Razorpay and Cred.
London is also home to 3,018 fintech companies, more fintech firms than any other city globally. As the biggest global fintech cluster, the UK capital is producing some of the world’s fastest growing fintech companies and is now home to 29 fintech unicorns, second only to San Francisco’s 37, the research revealed.
Hemin Bharucha, Country Director, India, at London & Partners, said: “It is fantastic to see both Bengaluru and London among the top global cities for fintech VC investment. The pandemic has forced us to reinvent the wheel and focus on technology to connect and transact digitally when physical borders have been shut.”
“We are also seeing increasing opportunities for fintech collaboration between India and London, with several London-based fintech companies choosing to expand into the India market. We look forward to supporting more Indian fintech companies to expand to London, as well as helping London-based fintech firms to enter the Indian market,” he said.