Neighbouring countries are the reference scales to check the best performer in various disciplines. Of the various disciplines, the spectators have measured FinTech and have come up with the result of India outperforming China in terms of investments made in FinTech.
The Covid-19 has weakened private capital markets. The first quarter of 2020 witnessed the worst time for venture capital markets in the FinTech sector- this is the worst happenings in the sector in 2 years! The VC supported FinTech activities dropped to 6.1 billion dollars through over 400 deals.
The sector has never experienced such a plummeting Q1 phase since 2016. In Q1 2020, FinTech start-ups had only just over 200 deals and $ 1 billion funding, which were 13 quarter low and 9 quarter low respectively. During this recession stage, investors withdrew their deals and refreshed portfolios to prepare themselves to face the recession. As China was entirely shut down, FinTech were terribly hit and went through the worst quarter ever since 2015.
In the continent of Asia, there was a total of 69% drop in funding and 23% drop in funding as compared to the fourth quarter of 2019.This is the first time India is exceeding China in funding in the five quarters. However, the countries tied with respect to the number of deals. In the now, FinTech and other Technology companies are accelerating product development to nullify the possible recession and aftermath of Coronavirus occurrence.