Latest news with #PulseofFintech
Business Wire
28-05-2025
- Business
- Business Wire
As Fintech Funding Falls to Seven-Year Low, Founders Debate Bootstrapping vs VC
LONDON--(BUSINESS WIRE)--Global fintech investment slumped to its lowest level since 2017, falling to $95.6 billion across 4,639 deals, according to KPMG's latest Pulse of Fintech report. In the UK, investment dropped by more than 25% year-on-year – its weakest level since the height of the pandemic. 'It's no longer about who raises the most,' says Dima Kats, CEO and Founder of Clear Junction. 'It's about who builds something that lasts. Bootstrapping forced us to focus on efficiency, product-market fit, and real value – not hype.' But not all fintech sectors are suffering equally. Payments stood out as a rare bright spot, with global investment rising to $31 billion – up from $17.2 billion the previous year. Analysts point to infrastructure innovation, market consolidation, and improved investor confidence as key drivers. As fintech's investment landscape shifts from growth-at-all-costs to sustainability, the funding paths chosen by founders are under renewed scrutiny. That question takes centre stage at Money20/20 Europe 2025, where two prominent fintech leaders will go head-to-head in a debate titled: Bootstrapping vs. Backers: The Fintech Funding Showdown. Dima Kats, CEO and Founder of leading global payments service provider Clear Junction, and Babs Ogundeyi, Founder and Group CEO of Nigerian neobank Kuda, will share radically different perspectives on how to build and scale a fintech under pressure. Kats built Clear Junction without external capital, scaling it into one of Europe's fastest-growing companies (FT1000, 2025). Ogundeyi, meanwhile, turned to venture funding to rapidly launch and expand Kuda – one of Africa's first challenger banks, now serving millions of customers. 'It's no longer about who raises the most,' says Kats. 'It's about who builds something that lasts. Bootstrapping forced us to focus on efficiency, product-market fit, and real value – not hype.' 'We had no time to lose,' says Ogundeyi. 'Millions were excluded from the financial system. Venture funding helped us build quickly with other knowledgeable and experienced people to meet urgent needs.' With investor appetite beginning to cautiously return in 2025 – albeit with more conservative deal sizes and heightened expectations – the discussion is expected to resonate with founders, funders, and policymakers alike. Moderated by Simone Ishikawa, founder of fintech and impact startup consultancy ishikoo, the session will examine: Would either business have survived on the other's funding path? The trade-offs between control, speed, and mission Whether founders can stay true to their purpose under investor scrutiny How funding models shape strategy in emerging vs. developed markets What both leaders wish they had known at the start of their journeys 'We're not here to pitch a playbook,' says Kats. 'We're here to show what it really takes.' 'Trust and inclusion are at the heart of both our missions,' adds Ogundeyi. 'But we chose different paths.' About Clear Junction Clear Junction helps regulated financial institutions access and manage cross-border payments, with a focus on operational security backed by strong compliance and risk management practices. The Group is licensed and approved by regulators in the UK, EU, and Canada to provide payment and crypto services. Through its extensive bank network and proprietary technology, Clear Junction offers reliable payment infrastructure, correspondent account services, and access to major clearing networks. By filling the gaps left by traditional providers, Clear Junction enables businesses to operate efficiently and expand globally. For more information, visit:.
Zawya
27-02-2025
- Business
- Zawya
AI and Blockchain Innovations Propel Singapore's Fintech Evolution Amid Investment Recalibration: KPMG's Pulse of Fintech H2'24
Singapore's fintech investment recalibrated to US$1.3 billion in 2024, in line with global shifts toward sustainable growth. Crypto and blockchain investment increased 22 percent in H2'24 to US$267 million, driven by AI-integrated solutions. AI-powered fintech surged, with investment jumping from US$24 million in H1'24 to US$160 million in H2'24, reflecting demand for regtech and automation. H2'24 fintech deal value grew 41 percent, reflecting a shift toward high-value, early-stage investments. SINGAPORE - Media OutReach Newswire - 27 February 2025 - Singapore's fintech sector recalibrated in 2024, with investment totaling US$1.3 billion, the lowest level since 2020. This strategic pivot reflects a global trend as fintech investment reached a seven-year low of US$95.6 billion. Despite reduced funding levels, Singapore's focus on innovation and sustainability positions it as a leader in AI-driven solutions and blockchain advancements, according to KPMG's Pulse of Fintech H2'24 report. Singapore's Resilience in Fintech Innovation While the cautious investment environment slowed overall funding, Singapore remains a hub for fintech innovation. Crypto and blockchain investment rose 22 percent in H2'24, reaching US$267 million, fuelled by AI-powered digital asset solutions and blockchain-based financial infrastructure. Strong regulatory frameworks and institutional interest have solidified Singapore's role as a strategic leader in these emerging sectors. AI-powered fintech also made significant gains, with investment soaring from US$24 million in H1'24 to nearly US$160 million in H2'24. Investor interest was particularly strong for regtech, business automation and agentic AI solutions. "If what we've seen in the broader investment space is any indication, AI could be a sleeping giant for fintech investment," said Anton Ruddenklau, Lead of Global Innovation and Fintech, Financial Services, KPMG International. "However, right now, it's still very early days. There's definitely a lot of interest in AI, generative AI, agentic AI and automation, but there's a lot of caution too. Over the next year, AI-focused regtechs will likely see the most traction among investors as financial services companies look for better ways to respond to the increasingly complex regulatory environment. Shifting Dynamics in Investment Focus H2'24 saw the total value of Singapore's fintech deals rise 41 percent, hitting US$781 million, even as deal volume dropped 36 percent. This underscores a growing emphasis on later-stage deals with high scalability and near-term profitability. Early-stage VC interest remains strong as quality-driven investments gain traction. Globally, fintech investment also trended towards practical solutions, with funding focused on blockchain infrastructure, climate tech and compliance-driven technologies. This alignment with global priorities underscores Singapore's adaptability and competitive edge. The Role of Regulatory Clarity in Blockchain Growth The blockchain and crypto space in Singapore benefitted significantly from regulatory stability, with H2'24 blockchain investment rising by over 20 percent to reach US$267 million. This growth was spurred by AI-powered blockchain applications, blockchain-as-a-service platforms and notable funding rounds such as Partior's US$80 million raise for its blockchain-based interbank settlement network—the largest in the Asia-Pacific region. These advancements position Singapore for continued leadership in the digital assets space while aligning with international regulatory trends. Global investment in digital assets reached US$9.1 billion in 2024—the highest total ever outside of the outlier years of 2022 and 2023, focusing on market infrastructure, tokenisation, and stablecoins. During H2'24, four of the five largest deals occurred in the Americas, including Stripe's US$1.1 billion acquisition of stablecoin infrastructure company Bridge, a US$525 million raise by Praxis, and a US$200 million raise by Current—all based in the US—and a US$210 million raise by Canada-based Blockstream. A US$100 million raise by UK-based Crytocoin accounted for the largest deal in the EMEA region. Payments sector in Singapore faces maturity challenges Singapore's payments sector, ranked third among fintech verticals, showcased resilience despite operating in a mature ecosystem. H2'24 witnessed a rise in deal count, with nine transactions totalling US$57.4 million. Innovations like FAST, PayNow, and SGQR provide a robust foundation for the sector, enabling further growth in tailored and scalable payment solutions. Opportunity in this fintech segment lies in cross-border and regional expansion, positioning Singapore as a hub for Asia's payment growth. On the global stage, the payments sector demonstrated strong momentum in 2024, with funding nearly doubling year-on-year to reach US$31 billion. While this funding surge was heavily influenced by consolidation and strategic transactions, it highlighted the sector's critical role in the fintech ecosystem. Landmark deals included GRCR's US$12.5 billion acquisition of Worldpay and Advent International's US$6.3 billion privatisation of Nuvei, alongside other notable activities such as Mynt's US$788 million VC raise in the Philippines. A Forward-Looking Market Outlook Amid a recalibrating investment landscape, Singapore's focus on sustainable growth, innovation, and emerging technologies positions the country at the forefront of fintech evolution. With declining interest rates and easing global election uncertainties, 2025 offers opportunities for increased fintech deal activity and new momentum in AI, blockchain, and digital payments. The Singapore Budget 2025 further accelerates this momentum, introducing initiatives to help businesses access and integrate AI at scale and to attract entrepreneurial talent to establish and grow ventures in Singapore. H2 2024 H1 2024 Fintech verticals Total value US$ (million) No of deals Total value US$ (million) No of deals Reg Tech $1.5 4 $2.2 4 Insur Tech $100.0 2 $41.5 2 Cybersecurity $3.0 1 $3.0 1 Payments $57.4 9 $66.2 6 Digital assets and currencies (crypto/blockchain) $267.0 53 $219.1 82 AI & ML *these deals are also tagged with other fintech verticals $159.9 12 $24.1 15 Figure 1: Singapore's fintech verticals deal values and volume for H1 2024 and H2 2024 Singapore Global Fintech verticals Ranking Deal Size Ranking Deal Size US$ (million) US$ (billion) Digital assets and currencies (crypto/blockchain) #1 $486.09 #2 $9.10 Insurtech #2 $141.50 #4 $3.10 Payments #3 $123.60 #1 $31.00 Cybersecurity #4 $6.00 #5 $0.90 Regtech #5 $3.71 #3 $7.40 Wealthtech #6 0 #6 $0.40 Figure 2: Ranking of top Singapore and Global's fintech verticals in deal values for 2024 Global fintech investment Regionally, the Americas attracted the largest share of fintech investment in 2024—US$63.8 billion across 2,267 deals, including US$50.7 billion across 1,836 deals in the US. The EMEA region attracted US$20.3 billion across 1,465 deals, while the ASPAC region saw US$11.4 billion across 896 deals. At a sector level, the payments space attracted the largest share of investment (US$31 billion), followed by digital assets and currencies (US$9.1 billion), and regtech (US$7.4 billion). "It's been a rough year for nearly everyone—fintechs, corporates, VC and PE firms—given the breadth of challenges and uncertainties in the global market. With only a handful of exceptions, no one wanted to pull the trigger on the largest deals—which have long been a mainstay in fintech investment," said Karim Haji, Global Head of Financial Services, KPMG International. "But there's a lot to be positive about heading into 2025. Many critical elections are behind us and investment and deal activity is beginning to pick up. We are starting to see more deals coming through because of interest rate cuts in different jurisdictions and the lower cost of funding. However, we will have to wait and see if the changing world trading conditions impact inflation, interest rates and consequently these positive signs of market change." Global Key Highlights for 2024 Global fintech investment fell from US$119.8 billion across 5,382 deals in 2023 to US$95.6 billion across 4,639 deals in 2024. The Americas attracted US$63.8 billion in fintech investment across 2,267 deals in 2024, of which the US accounted for US$50.7 billion across 1,836 deals; the EMEA region attracted US$20.3 billion across 1,4645 deals, while the ASPAC region attracted US$11.2 billion across 896 deals. Global M&A deal value fell from $60.2 billion to US$49.6 billion between 2023 and 2024; while H2'24 was softer than H1'24, M&A deal value rose from US$7.4 billion to US$14.2 billion between Q3'24 and Q4'24. PE investment declined significantly, falling from US$10.5 billion in 2023 to just US$2.6 billion in 2024, while VC investment saw a modest drop from US$49.2 billion in 2023 to US$43.4 billion in 2024. Payments was the strongest area of fintech investment globally in 2024, with US$31 billion in investment compared to just US$17.2 billion in 2023; other sectors that saw investment rise year-over-year included digital assets and currencies —from US$8.7 billion to US$9.1 billion, regtech—from US$4.4 billion to US$7.4 billion, proptech—from US$1.9 billion to US$3 billion, and wealthtech—from US$190 million to US$400 million. Corporate VC-participating investment globally fell from US$26 .9 billion in 2023 to US$19.6 billion in 2024; only the EMEA region saw corporate investment in VC deals rise—from US$5.1 billion to US$5.8 billion year-over-year. The Americas saw CVC drop from US$13.8 billion to US$9.9 billion, while ASPAC saw CVC investment drop from US$8.0 billion to US$3.9 billion. Global: Americas sees VC investment drop to six-year low despite record high in Canada The Americas saw total fintech investment drop from US$77.6 billion in 2023 to a six-year low of US$63.8 billion in 2024. The US accounted for $50.7 billion of this funding—a decline from US$72.8 billion in 2023. Outside of the US, Canada saw a record high of US$9.5 billion in fintech investment during 2024—driven in large part by the buyout of Nuvei—while investment in Brazil softened from US$2.3 billion to US$1.4 billion. Fintech investment dropped slightly from US$32.8 billion to US$31 billion between H1'24 and H2'24. On a more positive note, investment almost doubled between Q3'24 and Q4'24, rising from US$10.8 billion to US$20.2 billion. Within the US, fintech investment dropped from US$28.8 billion to US$21.9 billion between H1'24 and H2'24, although it also rose from US$9.9 billion to US$11.9 billion between Q3'24 and Q4'24. Global: Fintech investment in EMEA region sinks to US$20.3 billion—lowest total since 2016 Fintech investment in the EMEA region fell from $27.6 billion across 1,833 deals in 2023 to just US$20.3 billion across 1,465 deals in 2024. H2'24 also saw a significant drop compared to H1'24—from US$13 billion across 820 deals to just US$7.3 billion across 645 deals. While the UK accounted for nearly half of all fintech investment in the EMEA region during 2024 (US$9.9 billion), the total was a significant decline compared to 2023 (US$13.6 billion). Germany also saw fintech investment drop between 2024 and 2025—from US$961 million to a ten-year low of US$815 million. The Middle East saw the most positive results in EMEA during 2024, with fintech investment rising from US$1.2 billion to US$2.2 billion year-over year. Global: Asia-Pacific region sees lowest level of fintech investment in a decade Total fintech investment in the ASPAC region fell from US$14.6 billion in 2023 to US11.4 billion in 2024—the lowest level of fintech funding seen in the region since 2014. India accounted for the largest share of this total (US$4.1 billion), led by a US$.5 billion raise by WSB Real estate partners in H1'24. Total fintech investment in China dropped from US$2.6 billion to just US$687 million between 2023 and 2024, while Australia saw fintech investment nearly double from US$840 million to US$2.1 billion; fintech investment in Japan held nearly steady year-over-year at US$660 million. A sense of optimism for 2025 With interest rates declining in many jurisdictions and election uncertainties finally easing, there's a cautious sense of optimism within the fintech market heading into 2025. The average time between deals has also lengthened significantly, from approximately fifteen months in 2022 to twenty-four months in 2025—the longest it has been in the last decade—which could make 2025 a critical year for deal-making as fintechs look to ensure their continued operations. While the payments space will likely remain the biggest ticket of investment globally, digital assets and currencies are well positioned for an upswing in investment—particularly when it comes to market infrastructure, digital tokenisation, and stablecoins. AI is also expected to remain a key priority for investors, with regtech and cybersecurity-related solutions likely to see the most interest in H1'25. Hashtag: #KPMG' The issuer is solely responsible for the content of this announcement. About KPMG International KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ("KPMG International") operate and provide professional services. "KPMG" is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively. KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. KPMG
Yahoo
21-02-2025
- Business
- Yahoo
Five of the most important fintech VCs investing heavily in the sector
Global investing in fintech startups is starting to see an uptick. Just this week, KPMG issued its Pulse of Fintech report for the second half of 2024. In the fourth quarter of 2024, investment climbed to $25.9 billion from $18 billion in the third quarter, according to KPMG. Granted, this is not the enthusiasm of years past, especially the wild days of 2021. But judging by our inboxes, there is no shortage of venture capitalists still betting big on the space. Below is a list of just a few VCs who remain bullish on fintech. About the VC: Infinity Ventures is a three-year-old early-stage venture firm dedicated to investing in fintech startups globally founded by Jeremy Jonker, Jay Ganatra, and Mario Ruiz. They left PayPal Ventures in May 2021 and closed on their first $158 million fund in October 2021. In October 2024, the firm raised a $184 million Fund II, bringing total assets under management to more than $350 million. Average check size: Depends on stage: $1-2 million pre-seed; $2-4 million seed; and $5-10 million Series A. Notable investments: Rainforest, Pagos, Mendel. Most recent big investment: SimpleClosure, a business-closure platform. The firm's focus is on B2B fintech and commerce enablement. About the VC: Founded in 2019 by NerdWallet co-founder Jake Gibson and Sheel Mohnot, Better Tomorrow Ventures leads rounds in pre-seed and seed-stage fintech companies globally. It has $225 million in assets under management. Average check size: Ranges from $500,000 to $4 million. Notable investments: Unit, Relay, Coast, Mendel, Charlie. Most recent major investment: Basis (BTV led seed, Khosla led A). If pitching Better Tomorrow Ventures, Mohnot previously told us: 'Find a way to get in front of us that is exciting! We respond to cold emails all the time — here's an example of a cold email that worked.' About the VC: Founded in 2022 by 'This Week in Fintech' newsletter author Nik Milanović, The Fintech Fund invests in fintech companies globally at the pre-seed and seed stages. Last September, the firm closed its second $10 million fund. Average check size: Ranges from $200,000 to $400,000. Notable investments: Rainforest, Unit, Cascading AI, Ansa. Most recent major investment: WiseLayer. If founders are looking for hands-on investors, they'll find it in The Fintech Fund, according to Milanović. 'There's a lot of ETFs that will write large checks,' he told TechCrunch previously. 'But our goal is to really bring together this whole community — and that's newsletter readers, investors in the fund, our angel syndicate — so that when the founder gets a check out of The Fintech Fund, it's not just money but also a ton of consulting or referrals to new hires and to new customers.' About the VC: Atlanta-based TTV Capital invests in early-stage companies with a focus on traditional fintech, fintech-enabled businesses and the 'future of fintech.' Its assets under management total over $750 million. Average check size: Ranges from $2 million to $8 million. Major investments: Green Dot, Greenlight. Most recent major investments: Charlie, Payabli. Partner Lizzie (Guynn) Hartley previously told TechCrunch that when it comes to pitching, she prefers to take initial pitch meetings as video calls. 'Before I talk to a founder on a call, they should be able to clearly articulate the problem they are solving. The ability to distill this down into a digestible and understandable statement is very helpful. I appreciate when founders can walk through the customer workflow end-to-end and prove the customer benefit. This helps us build conviction in a customer's willingness to pay for a new tool or software,' she said. About the VC: The firm has been around for well over a decade, exclusively investing in companies building financial technology at the pre-seed to Series A stages. It currently has $4 billion in assets under management. In 2023, QED Investors announced that it had raised $925 million across two new funds to back fintech startups globally — a $650 million early-stage fund and a $275 million growth-stage fund. Managing partner and co-founder Nigel Morris told TechCrunch at the time of the firm's last fund close that QED planned to make about 40 investments out of that early-stage fund. Average check size: $15 million to $20 million. Major investments: Credit Karma (QED was the first institutional money into the company), Creditas, Nubank, SoFi. Most recent major investment: Kin Insurance, One Card, Moniepoint. QED is focused on embedded finance, cross-border payments and wealth management, as well as on AI. Roughly half of QED's portfolio is in the U.S., followed by LatAm, Europe, Southeast Asia and Africa. It's also looking into fintech opportunities in the Middle East. One of its more recent investments was in Japan, its first in the country. Want more fintech news in your inbox? Sign up for TechCrunch Fintech here. Want to reach out with a tip? Email me at maryann@ or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at tips@ For more secure communications, click here to contact us, which includes SecureDrop and links to encrypted messaging apps. Sign in to access your portfolio
