Only 29 transactions amounting to US $ 175 million were recorded in Q120. While India also recorded 29 transactions, but valued at US $ 421 million.
Globally too, supported by VC FinTech financing activity fell to US $ 6.1 billion out of 404 transactions.
CB Insights in its’ State of FinTechs’ quarterly report said, ‘As the first country to fight and begin to recover from the coronavirus, what is happening in China could be an indication of what lies ahead for fintechs as the virus is spreading to other areas. “
The report adds: “Although Chinese investors were the first to feel the impact of Covid-19, leading to a rollback in agreements, the ripple effect quickly spread to other countries, including the India which has linked with China for 29 agreements. “
Globally, too, investors have abandoned betting at an early stage as they wish to focus on strengthening existing portfolios.
All regions except Africa saw a decline in fintech transactions in terms of QoQ.
FinTechs in lending, insurtech, wealth management, payments, regtech, capital markets and SMEs had to make deals with investors.