“The pandemic has strengthened the case for fintechs, and we believe that venture capitalists are likely to remain invested even as a market pullback clouds the outlook for IPO or blank-check exits,” says Celeste Goh, Fintech Research Analyst at S&P Global Market Intelligence. “The uncertain market conditions ahead, however, may nudge investors toward mature fintechs that have demonstrated financial discipline and B2B companies, which tend to have better unit economics than their consumer-facing counterparts. As established fintechs have exhibited a propensity to acquire for growth when flush with liquidity, we expect a robust M&A outlook as these mature firms continue to draw in private capital.”
Key highlights from the report include:
- Venture capital investments in APAC-based fintechs surged to a record high of $15.69 billion in 2021, more than double the prior year’s figure of $5.87 billion. While this growth followed subdued funding activity in 2020, the 2021 figure also represented a 74% jump from 2019’s pre-pandemic levels.
- Payment companies ranked in the largest amount…
