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Laxman Pai, Opalesque Asia:

Indian Venture Capital (VC) is on track to overtake China for the fourth consecutive year as fintech fortunes continue to diverge in the two emerging markets, said a study.

According to the report by Preqin, India is leading the VC charge in APAC and is on track to be the top fintech hub in the region for the fourth consecutive year, having overtaken China in 2019.

"Global GPs continue to shift their gears to India, which has attracted $4.6bn across 204 fintech deals year-to-date, far surpassing China's $836mn across 60 deals," the report pointed out.

Funding for fintech start-ups in China shrank by 73% year on year in the first three quarters of 2022, while deal volume fell by 39%, reflecting cooling investor sentiment toward the sector at the center of Beijing's regulatory clampdown.

In contrast, India saw year-on-year growth of 5% in deal value and 13% in the number of deals during the same period, driven by a favorable regulatory environment, a maturing start-up ecosystem, and the relative buoyancy of its stock market, which has stayed flat in 2022.

India's growth stands out amid a general slowdown in fintech funding across major dealmaking countries in Asia (except South Korea).

Over the past decade, seed funding has skyrocketed in India. VC firms have flooded the market as they search for promising young companies in the hopes of cashing in on ratcheting valuations with each new funding round.

Preqin recorded only......................

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