FinTech Flourishes with $1.3bn Investment Across 27 Deals
This week marked a significant surge in the FinTech sector, with a total of $1.3bn invested across 27 deals, rebounding from a series of slower weeks. The four biggest deals alone accounted for $788m, almost doubling last week’s total investment of $422m across 22 FinTech transactions.
Interestingly, the top four deals originated from companies based in different countries. American firm Next Insurance secured the largest deal, raising $265m. Brazil’s QI Tech and Saudi Arabia’s Tabby followed closely, each amassing $200m. The UK’s Atom Bank rounded out the top four with a $123m deal.
Despite being currently headquartered in Saudi Arabia, Tabby was initially established in the UAE before relocating to prepare for its debut on the Saudi Arabian stock exchange. Additionally, the UAE saw two other local firms, NOW Money and SpiderSilk, close their funding rounds this week.
According to a report from FinTech Global, the UAE has been a hotspot for cryptocurrency, with 42% of the 24 deals closed in H1 2023 involving blockchain and crypto sector companies. However, the UAE’s FinTech space has witnessed a downturn in deal activity, experiencing a 54% YoY decline and a 72% decrease in capital investment during H1 2023.
The US continued to dominate the global FinTech scene, contributing to 12 of this week’s 27 deals. The UK followed with five concluded funding rounds. Other nations represented included Canada, Mexico, the Netherlands, Singapore, South Africa, and Spain, each marking one deal.
InsurTech was the most prevalent sector of the week, with seven firms, including Next Insurance, AgentSync, Cowbell, Layr, Sprout.ai, Nuvalaw, and Inclusivity Solutions, raising capital. PayTech followed with five deals, while the marketplace lending and CyberTech sectors each recorded four transactions.
The week also saw WealthTech firms Atom and Charlie, data & analytics companies Arteria AI and Accelex, Infrastructure and Enterprise Software platform NOW Money, RegTech solution Aembit, and ESGFinTech startup ESG Flo raise capital.
Earlier this week, FinTech Global released its second annual ESGFinTech100 list, highlighting 100 companies leading the charge against climate risk, sustainability, social responsibility, and governance challenges. According to their recent report, the UK accounted for 47% of all ESG FinTech deals in Q3 2023, despite a 10% drop from the previous quarter.
These developments underscore the dynamism and resilience of the global FinTech industry, as it continues to innovate and attract significant investment, even amidst challenging market conditions. The diversity of countries represented in this week’s funding rounds further emphasizes the sector’s worldwide appeal and growth potential.
