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FinTech Funding Frenzy: $1B Raised This Week
Despite a sizable total, the week was characterized by smaller deals. Only seven of the week’s FinTech funding rounds exceeded $10 million, with two deals accounting for a significant portion of the $733 million raised. This trend mirrors last week’s scenario, where two large deals bolstered the sector to secure over $1 billion.
Marketplace lending dominated the week’s largest deals, with Lendbuzz securing a $400 million forward flow agreement, DMI Finance raising $333 million, and Arch Lending closing a $76 million round. Axio, another marketplace lending company, also raised $20 million from the Amazon Smbhav Venture Fund.
Siepe, Lettuce Financial, Your Money Line, TransBank, and Vanilla in WealthTech.
While marketplace lending captured the largest deals, WealthTech, PayTech, and infrastructure and enterprise software emerged as the subsectors with the most deals, each recording five transactions. Siepe, Lettuce Financial, Your Money Line, TransBank, and Vanilla were among the five WealthTechs, while Resal, Skyfire, Waza, Kem, and Mesh represented the PayTech companies. The infrastructure and enterprise software businesses were PostEx, DiMuto, Workpay, When, and Thera.
The remaining sectors included three CyberTechs (Holonym Foundation, Nucleus Security, and Cyberbit), one InsurTech (YouSet), and one RegTech (Chaos Labs).
United States: 15 of 24 deals
The United States continued to be the dominant region for FinTech funding, with 15 of the 24 deals going to U.S.-based companies. India was the only other country with multiple FinTech deals, while Saudi Arabia, Pakistan, Singapore, Kenya, Canada, and Kuwait were also represented.
514 transactions in H1 2024, down from 969 in H1 2023
Asia’s FinTech sector is experiencing a slowdown, similar to other regions. In the first half of 2024, the region recorded 514 transactions, a decline of nearly 47% from the 969 deals completed during the same period in 2023. Investment volume also plummeted, dropping 70% to $7.4 billion from $24.4 billion in H1 2023.
Transaction numbers decline but investment volume increases.
Latin America, however, has shown some positive signs. While the number of transactions decreased by 58% in H1 2024 compared to H1 2023, investment volume increased by 20% to $1.2 billion. Brazil and Colombia led the region in deal activity.
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