[KPMG]Global Analysis of Fintech Funding in H1’2024 🌍💰

2024 got off to a challenging start for the fintech market globally, driven by ongoing concerns related to geopolitical uncertainty 🌐 and high interest rates 📈. Total global investment declined from $62.3 billion to $51.9 billion between H2’23 and H1’24 — the lowest six months of fintech investment since H1’20. All regions experienced a noticeable drop in fintech investment, with the EMEA region experiencing the sharpest drop — from $19.4 billion to $11.4 billion between H2’23 and H1’24.

Globally, only five $1 billion+ deals occurred in the fintech space during the first half of 2024 — all buyouts. The Americas accounted for four of these deals, including Worldpay ($12.5 billion) and EngageSmart ($4 billion) in the US 🇺🇸 and Nuvei ($6.3 billion) and Plusgrade ($1 billion) in Canada 🇨🇦. The UK 🇬🇧 accounted for the fifth deal — the $4 billion buyout of IRIS Software Group. The UK also saw the largest fintech-focused venture capital deal of H1’24 — a $999 million raise by Abound.

While fintech investment remained suppressed, deal volume offered a hint of optimism 🌟 for the fintech market; both the Americas — including the US — and the ASPAC region saw deal volumes increase between H2’23 and H1’24.

At a sector level, payments continued to draw the largest share of fintech funding globally, attracting $21.4 billion in H1’24. REGTECH, however, was the only major fintech subsector to see investment increase in the first half of 2024 — with the $5.3 billion in investment already surpassing 2023’s total. At a technology level, artificial intelligence (AI) 🤖 continued to be a very hot area of interest for investors, particularly in the US.