Considering the current economic landscape, with high-interest rates, additional monetary policies, and inflation in many territories, as well as the conflicts in Ukraine and the Middle East, investments in the fintech sector saw a decline across all regions. Worldwide fintech investment decreased by 48% in 2023 compared to the previous year, with the sector receiving 3,973 deals from Seed through Series I. Research from Statista indicates that the value of investments in fintech companies in 2023 decreased significantly at a global level, with the Americas seeing the highest value, reaching a total of USD 78.3 billion. Investments in the EMEA region halved compared to 2022, recording USD 24.5 billion, while Asia-Pacific encountered the highest reduction, with the value of investment dropping from USD 51.3 billion in 2022 to USD 10.8 billion in 2023. As investors remained rather restrained with their funding throughout the fourth quarter of 2023, companies were required to showcase their capabilities and expansion potential. Many of them chose to concentrate their efforts on expanding their operations across different markets and developing their product suites, while further optimising the customer experience. Additionally, firms operating in the Middle East, especially in the payments and banking sectors, received substantial funding from investors, supporting the advancement of their businesses.
During the fourth quarter of 2023, North America attracted a significant portion of global investments, with companies leveraging their capital to expand their operations and product suites, as well as to support their global growth. For example, at the beginning of October 2023, Metro Bank reached a financial deal consisting of a nearly USD 409 million capital infusion and a USD 756 million debt financing package. The funding represented a new chapter for the bank, allowing it to pursue growth and solidify its foundational efforts. Additionally, Procurify, an all-in-one spend management solution, completed a USD 50 million Series C funding to support the implementation of AI in spend management services. During the same period, Nova Credit, a data analytics company, raised USD 45 million in a Series C funding round, aiming to broaden its product offering beyond cross-border credit reporting.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now