After witnessing a surge in fintech funding in the first quarter, India has managed to surpass China and become a top market in Asia for fintech deals in Q2 2019.
India saw 23 fintech deals whereas China managed only 15 deals in the same period, as per the latest CB Insights report.
This is despite witnessing a downfall in the number of deals in comparison to the first-quarter figure, which was 29, equal to China.
Though, China, in the second quarter, got $25 million more fintech funding than India, which received $350 million funding in the same period.
Overall, Asia witnessed 82 deals worth $1.1 billion in Q2.
Meanwhile, the graphs had misquoted the figures of fintech deals and investments for the last quarter. Entrackr had reported the first-quarter results in April.
Queries, in this regard, to CB Insights did not elicit a response.
In the first quarter, CB Insights’s report mentioned China getting $192 million worth fintech funding, which is about 89% less than last quarter while India witnessed 27% more funding in the quarter to $286 million.
Slow down in China was primarily led by the regulatory crackdown on fintech firms.
In 2018, over four thousand P2P lending platforms failed (under investigation by police or unable to repay investors) after the Chinese regulatory crackdown.
The Chinese regulator also found some of these platforms being involved in raising funds illegally and running Ponzi schemes busted after the crackdown.
In contrast, the Indian market, which is home to about 500 million internet users and 150 medium-sized enterprises, is drawing investors from across the globe. Meanwhile, P2P firms in the country are still grappling with a high default rate and disbursement limitation for lenders
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