Fintech companies in Asia-Pacific pulled in US$2.35 billion in investment during the first three months of 2021, more than the total amount raised in the first half of the previous year.
- The volume of funding activities also jumped, with 153 deals in the first quarter, 50% more than in the same period last year and 35% up on the preceding quarter, according to a report by S&P Global Market Intelligence.
- Payment companies have remained hot property for venture capitalists, but investor appetite for digital lending, the hardest-hit sector last year in terms of funding value and volume, appears to be returning. In Q1, digital lenders netted US$548 million in 38 transactions, more than half the total amount raised by the sector in full-year 2020, when it pulled in US$788 million in 79 deals.
- Funding flowed amply to Southeast Asia-based fintechs, which have been attracting more inflows among Asia-Pacific fintechs for the past two years. Southeast Asian firms accounted for 44% of APAC’s total fintech funding value in Q1, with more than US$1 billion raised in 51 deals.