S’pore fintech investments jump 69 per cent, Latest Business News - The New Paper

S’pore fintech investments jump 69 per cent

This article is more than 12 months old

Fintech start-ups raised more money in the first nine months of this year than in the whole of last year.

About US$735 million (S$1.01 billion) was poured into financial technology-related deals, a 69 per cent increase from the same period last year, Accenture noted.

The amount has exceeded the $642 million raised in the whole of last year, it added yesterday.

But the report also noted that investors are betting more on mature start-ups than newbies.

Angel and seed funding for the earliest stage of capital raising dropped 56 per cent to US$54 million, with the number of deals falling by 46 per cent to 29 from January to September this year.

Series funding for more established start-ups jumped 66 per cent to US$442 million, although deal numbers remained at 44 in the same period.

Mr Divyesh Vithlani, Accenture's head of financial services in the Asean region, said the shift represents a maturing market that is more interested in supporting established players. "This steady flow of funds shows investors' confidence in the future growth potential of the fintech industry in Singapore."

He added that the digital bank licences the Monetary Authority of Singapore (MAS) plans to issue will present more opportunities for fintech start-ups and traditional banks to work together.

MAS chief fintech officer Sopnendu Mohanty said crossing the investment threshold is recognition of the potential that Singapore and South-east Asia hold.

Deals involving payment start-ups have hit US$251 million so far this year, a 113 per cent jump from the same period last year. Insurtech funding increased 2.7-fold to US$128 million from US$35 million, while lending rose 51 per cent to $145 million from $96 million.