Advertisement
News

Global fintech investments decline

While global investment in fintech stood at $111 billion in the first half of 2021, it fell to $107.8 billion in the same period of this year.

KPMG, with its “Pulse of Fintech” report, focused on global investments in fintechs in the first half of 2022.

Advertisement

Fintech investments fell in the Americas and EMEA regions, while reaching a new record high in the Asia-Pacific region, mainly as a result of several major M&A transactions, including the $27.9 billion acquisition of Australia-based Afterpay by Block. In the first half of 2022, the largest share of fintech investments was in the payments area with $43.6 billion, followed by crypto with $14.2 billion.

KPMG Turkey Digital Finance and Fintech Leader and Company Partner Sinem Cantürk, whose views were included in the statement, said:

“The environment of optimism in the fintech market at the end of 2021, the Russia-Ukraine conflict in the first half of 2022, the ongoing supply chain difficulties, rising inflation and interest rates .It quickly turned into an environment in which recession concerns arose, as uncertainties about the rate of inflation negatively affected both public and private companies. When we look at what has happened in the fintech sector during the last 6 months in the environment created by unexpected events, we have witnessed a decrease in investments in many countries, especially in the first and second quarters of this year. As we enter the second half of 2022, market challenges are expected to continue as investors increasingly focus on revenue growth, profitability and cash flow. However, M&A activities are well positioned to grow as mature industries are consolidating and investors are looking for attractive opportunities amid downward pressure on valuations.”

Nearly 3,000 transactions were made in global fintech investments

While global investment in Fintech was 111.2 billion dollars with 3 thousand 372 transactions in the first half of 2021, it decreased to 107.8 billion dollars with 2 thousand 980 transactions in the first half of this year. While the total fintech investment and transaction volume decreased in both the Americas and EMEA regions, a new annual fintech investment record was broken in the Asia-Pacific region despite the decrease in the number of transactions.

 

Advertisement

The new Asia-Pacific record is set by 3 major M&A transactions (Australia-based Afterpay’s $27.9 billion acquisition by Block, Japan-based Yayoi’s acquisition by KKR for 2.1 billion dollars, and Australia-based fintechs Superhero and Swiftx. $1 billion merger).

Europe attracts record levels of venture capital investment

While global venture capital (VC) investments were $66.5 billion in the first half of last year , they continue to maintain their strength when 2021 is excluded, although it decreased to $52.6 billion in the first half of this year.

While the Americas attracts the largest VC funding with $27.2 billion, EMEA will be the target of the world’s two largest fintech rounds in the first half of 2022 ($1.1 billion from Germany-based Trade Republic and $1 billion from UK-based Checkout.com). ), attracted a new record level of financing with $16.6 billion.

Fintech-focused VC investments in the Asia-Pacific region, on the other hand, remained quite low at $8.7 billion.

Payments area continues to be popular with investors

Investors continued to invest in the payments space in the first half of 2022, investing $43.6 billion in payments-focused companies. However, given the increasing macroeconomic challenges, investments in payments are expected to decrease slightly in the second half of this year, especially in terms of early investment transactions.

Mergers and acquisitions activities, on the other hand, are expected to remain strong due to increased consolidation in payment companies.

As the crypto world faced significant challenges in the first half of 2022, crypto-focused companies received $14.2 billion in investment, including $1.1 billion in funding from Germany-based Trade Republic in June.

Advertisement

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button