Fintech fundraising grew strongly in major markets in 2019, Accenture

Investment in fintech ventures has risen sharply in most major markets in 2019, led by gains in the US and UK and emerging economies such as India and Brazil, according to Accenture.

Despite those gains, the total value of fintech deals globally dipped 3.7%, to USD 53.3 billion from USD 55.3 billion in 2018, when totals were boosted by a record USD 14 billion from Ant Financial and three other multi-billion-dollar transactions from Chinese companies.

The value of deals in the US jumped 54%, to USD 26.1 billion, with the largest portion of US funding going to lending startups and those in payments, each accounting for 26% of the total, while insurtechs took in another 18%. The country’s largest deal was the USD 1 billion that consumer finance fintech Figure Technologies secured from a credit facility in May 2019.

In the UK, fintech investments rose 63%, to USD 6.3 billion — almost the same as the total for 2018 and 2017 combined. Other European markets also made big strides, with investments in German fintechs up 83% in 2019, to USD 1.5 billion, and fundraising in Sweden jumping more than seven-fold, to USD 1.3 billion from about USD 175 million.

The value of deals in Brazil nearly tripled, to USD 1.6 billion, making the country the world’s fifth largest fintech fundraising centre.

Fintech deals in China dropped 92% in 2019, to USD 1.9 billion, with the USD 145 million financing from insurtech Shuidi Huzhu in June 2019 being the country’s largest transaction.

However, there were large fundraising gains elsewhere in Asia Pacific. Investments in India nearly doubled, to USD 3.7 billion, making the country the world’s third largest fintech market. The value of deals more than doubled in Singapore, to USD 861 million, and rose nearly 50% in Australia, to USD 1.1 billion.

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Source: Fintech fundraising grew strongly in major markets in 2019, Accenture – ThePaypers