Despite the Covid-19 pandemic, investments into Singapore-headquartered fintech firms rose sharply in the primary half of this 12 months, mentioned a report on Friday.
A flurry of investments in April and final month made up for a quiet first quarter, bringing complete fundraising to 0 million, together with a file excessive of $462 million in fairness funding.
This got here as traders made bigger bets on companies related in the present atmosphere, mentioned the report by BCG FinTech Control Tower (FCT), a research-focused unit developed collectively by the Boston Consulting Group and Expand Research.
Investors focused comparatively extra mature fintechs effectively positioned to speed up their progress, with a giant soar in mid-stage Series C+ funding particularly in April and final month.
Fintech firms providing banking providers to small and medium-sized enterprises noticed the largest progress in investments of about 210 per cent for the primary half of the 12 months as much as mid-June, over the primary six months of final 12 months. These have been adopted by fintechs in the expertise line, which noticed fairness funding develop by about 180 per cent 12 months on 12 months. The SME banking and expertise clusters collectively drew some $288 million in investments, famous the report.
BCG FCT labored with the Monetary Authority of Singapore (MAS) to analyse fintech equity-funding information to compile the report.
It mentioned that fintech mergers and acquisitions got here to greater than $185 million in the primary half of the 12 months.
These embrace Grab’s acquisition of Bento, a B2B robo-adviser and digital wealth expertise supplier; GoBear’s acquisition of AsiaKredit, a shopper lending platform; and AMTD Group’s acquisition of CapBridge, a non-public capital platform, and Policypal, which permits customers to check and buy insurance coverage on-line, mentioned the report.
However, the whole variety of fintech offers fell marginally to 41 in the primary 5 months of this 12 months, down from 44 in the identical interval final 12 months, although the typical deal measurement was about 20 per cent bigger.
MAS chief fintech officer Sopnendu Mohanty mentioned that amid the restoration from the pandemic, fintech has an excellent alternative to make a significant affect this 12 months and past by accelerating digitalisation of economic providers. “In spite of the challenging environment, investors’ confidence in fintechs demonstrates a deep understanding and appreciation of the long-term value fintech firms will create.”
BCG FCT managing director and world lead Pauline Wray mentioned the fintech ecosystem is maturing in Singapore, with the five-year effort for the reason that first supportive insurance policies by MAS “now coming to fruition”.
She added that particularly as Covid-19 accelerates the transfer to digital, “fintechs across the world have injected a new lease of life to financial services by supporting the financial industry as they provide value-added services and products to both new and existing customers”.