A wave of consolidation is coming for fintech

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Editor's note: It looks like Indian fintech firms are on an acquisition spree.  Even though venture capitalists across the globe are sitting on $300 billion in capital, investors are less willing to take a “punt on riskier opportunities”, The Economist noted recently. Last year, fintech startups in India raised $5.65 billion, a drop of 47% from the previous year, largely driven by a decline in late-stage funding, according to data analytics firm Tracxn.  Even as seed, early- and growth-stage firms face tough funding conditions, late-stage companies could see their valuations drop. Moreover, it seems no Indian fintech firm will list on the stock exchanges this year.  After years of ever-increasing valuations and outsized funding rounds, several investors and founders are now left with no choice but to find an exit through acquisitions.  This strategy seems well under way. From a mere nine deals in 2020, fintech acquisitions rose to 38 in 2022. Since the start of this year alone, there have been several acquisitions.  In early January, financial services firm InCred Capital acquired Orowealth, a retail-focused platform offering investments in bonds, real …