![Bengaluru ranks 8th globally for total fintech VC investment between 2016 and 2021 and attracted $800 million in fintech VC investment in the first six months of 2021.](http://media.assettype.com/indiaglobalbusiness%2F2021-07%2Fbee9b6a2-c63b-42aa-b789-7a3283db101b%2FGettyImages_1136399473.jpg?w=480&auto=format%2Ccompress&fit=max)
As one of the world’s fastest growing tech hubs, the capital of Karnataka attracted $800mn in fintech VC investments in the first half of 2021
Global financial technology (fintech) investment so far this year has reached a record high, with $54.1 billion pumped into fintech companies around the world, ahead of the total amount raised in any full year before.
New research from London & Partners – the Mayor of London’s international trade and investment agency – and Dealroom.co shows that Bengaluru ranks 8th globally for total fintech VC investment between 2016 and 2021 and attracted $800 million in fintech VC investment in the first six months of 2021.
As coronavirus drives the accelerated adoption of fintech products and services, the new data shows there have been higher levels of fintech VC investment than ever before this year. San Francisco led the worldwide list for fintech VC investment with $7.2 billion, while London stood second at $5.3 billion and New York third with $5.2 billion. European fintech firms also raised a record $13.9 billion, up 51 per cent on full year 2020 investment levels. London was at the heart of this growth, with its fintech firms accounting for over a third of all European fintech funding.
Reinventing the wheel
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.”
Ranking high
The new research also shows that India ranked fourth globally for fintech VC investment so far this year, with Indian-based fintech companies receiving $2.3 billion in the first six months of 2021, up from $1.5bn in January to June 2020. The US ranked first with $26.3bn, followed by the UK at $5.7bn and Germany at $2.4bn.
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 $5.3bn 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.
Unleashing potential
Some of London’s most successful fintech companies have also recently announced expansion plans into the Indian market, including fintech unicorn Revolut and London futurecorn – or a company with a value of between $250m and $1bn which is on the path to unicorn success – Tide.
Oliver Prill, Tide CEO said: “Since launching in 2017, Tide has been working hard to revolutionise how small businesses manage their financial admin. We’ve benefitted hugely from being part of one of the world’s leading fintech hubs in London and the significant growth we have seen in the UK has allowed us to look to expand internationally, with India being our first international market.
“Tide recognises the ambitions of both the UK and Indian governments to build India-UK bilateral relationships with an enhanced economic partnership and sees SMEs as being crucial to economic growth in both nations. As well as continuing to grow and serve businesses in the UK, we are committed to serving India’s 64 million, and growing, SME sector, helping to unleash the true potential of Indian small businesses by helping them to save time (and money) on their financial admin.”