June 14, 2024

Investments & Exits

FinTech shows a dip everywhere, but the investment rises in Apac

According to a study by KPMG, FinTech continues to fall from $111.2 billion in the first 6 months across 3,372 deals to $107.8 billion in the second quarter across 2,980 deals. So, total values continue to fall in EMEA and America, but Asia-Pacific has been strangely attracting new investors despite the fall in so many deals.

The highest record by Asia-Pacific is backed by the three major M&A deals- $2.1 bn buyout of Yayoi by KKR, $1 bn merger of Swiftx and Superhero, and $ 27.8 bn acquisition of Afterpay by Block. Thus, the disturbance in the public markets across the globe impacted many tech companies, including the global FinTech, which brought IPOs activity to rest in the first half of the year. This trend is expected in the second half as well.

The Asia-Pacific region showed strange behaviour by cracking 607 deals valued at $41.8 bn in the earlier half of 2022. This indicates that the next phase will involve more deals from the Asia-Pacific region.

Regulators are focusing on making necessary industrychanges, especially in India, in order to support the open banking system and decentralisation of finance in a safe and orderly way. These changes have impacted the revenue and operating models of the IPO players, importantly FinTech.

According to the new guidelines provided by the RBI on credit licensing, all digital loan lending FinTech companies and other non-regulated loan providers and loan lending companies should revisit and revise their business operating models.

You can find latest fintech news, insightful analysis of the financial sector, and the latest events in the fintech world at our website.

 

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