China has for long held the title as the top funder for fintech startups in Asia. However, in recent month, another Asian powerhouse India has emerged as the top funder for fintech companies in the continent.
According to a report by CB Insights, fintech startups funding shrank by 87.6% year-over-year to $192.1 million in the Q1 of 2019. Despite that fact, India gave out $285.6 million funding to fintech startup during that period; overtaking Chinese’s funding to the sector.
Both China and India saw 29 funding deals closed between investor and fintech startups. An interesting turn of events given just three quarters ago, China had 76 funding deals closed.
Perhaps the plunge in Chinese investment into the sector can be attributed to a tightened regulation on online lending in the country. A measure the country has been working on introducing over the past few years, as the authorities and regulators seek to rein in on financial risks from the fledging online lending industry.
The government has particularly been cracking the whip on peer-to-peer lending, whereby an individual goes online looking for a loan and is matched by another individual …read more
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