Asia Fintech Funding Set to Hit 4-Year Low
An ongoing trade war is pummelling fintech funding in Asia which could post a 4-year low by the end of 2019.
In the first nine months of the year, Asia registered 395 financial technology deals worth a total of $4.1 billion, according to global venture data and analytics firm CB Insights, including $1.8 billion in the third quarter. This is a far cry behind the $22.9 billion raised in the region last year and if the trend persists, annual fundraising for the sector could result in a 4-year low.
«Asia funding may fall to a four-year low if the pullback in China continues or if India deals cool down,» CB Insights said.
Global Cool Down
In the same period, deals totaled $24.6 billion globally in contrast with the whole of 2018’s $40.6 billion, which featured headline names such as Ant Financial ($14 billion raised). The number of early stage deals fell to a near 3-year low while funding for such deals fell to a 7-quarter low.
Since last year, the number of fintech deals gradually fell due to intensifying U.S.-China trade tensions, according to CB Insights, but third quarter experienced a sharp increase.
By sub-regions, not all experienced declines including Southeast Asia which surpassed $700 million in the first three quarters of 2019 – a 21 percent increase from the whole of 2018 and a record for deals.
