Global fintech investments drop 47% to $406m in April

By Business A.M. 

The global fintech sector  recorded a significant decline in April 2023 compared to April 2022 as investment raised by fintech companies globally  amounted to $406 million, representing a year-on-year  decrease of 47 per cent, while average deal size dropped from $2.1 million in April 2022 to $0.85m in April 2023.

This is according to a recent report of investment stats in the fintech industry published by FinTech Global.

The world’s leading provider of  financial technology information services, also noted that there were 475 fintech deals globally in the reviewed period, indicating a 12 per cent decline from the number of deals recorded in April 2022.

The report showed that DMI Finance, a digital lending provider, was the largest fintech deal in April 2023, raising $400m in their latest private equity funding round, led by MUFG Bank.

The USA dominated fintech deal activity in April 2023 with 235 deals announced, a 49.4 per cent share of total deals. The UK was the second most active fintech country with 35 deals, a 7.3 per cent share of deals. India was the third most active fintech country in April 2023 with 18 deals, a 3.7 per cent share of total transactions.

Looking forward to 2023, the report projected that  trending sectors such as blockchain & crypto will likely see a drop in deal activity.

Fintech Global noted that blockchain & crypto was the most active FinTech sector in April 2022 and 2022 as a whole but has fallen to the third most active in April 2023 with 70 deals, a 14.7 per cent share of total deals. It added that RegTech is the only fintech sector which has grown from 2022 with 91 deals in April 2023, a 66 per cent year-on-year increase . This was attributed to the continued disruptiveness of the cybertech subsector. However, the report disclosed that RegTech deal size  still dropped by 51 per cent in April 2023 compared to the corresponding period of 2022.