Whole funding into Southeast Asia (SEA) FinTech startups fell 25 p.c to $899 million within the first half of 2024 from $1.2 billion a yr in the past, Tracxn mentioned Friday.
The worldwide software program as a service (SaaS)-based market intelligence platform mentioned in its “Geo Semi-Annual Report: SEA FinTech H1 2024” that the funding additionally noticed a 31 p.c decline from the $1.3 billion raised within the second half of 2023.
Based on the agency, the SEA FinTech startup ecosystem skilled its highest half-yearly funding within the second half of 2021, after which the funding has considerably declined.
It mentioned the present macroeconomic circumstances and geopolitical points have additional contributed to the downward development, making the primary half of 2024 the least funded half-year previously three years.
The agency additionally famous that this downward transfer was pushed by declines in seed and late-stage investments.
Late-stage investments fell 47 p.c to $338 million within the first half 2024 from $632 million within the first half of 2023.
Seed-stage investments stood at $42.5 million within the first half of 2024, a 53 p.c lower from $90 million within the first half of 2023.
Nonetheless, early-stage funding rose 17 p.c to $519 million within the first half of 2024 from $443 million within the first half of 2023.
Solely two $100 million+ rounds occurred within the first half of 2024, as in opposition to 4 every within the first half of 2023 and the second half of 2023.
ANEXT Financial institution raised $148 million in a Sequence D spherical, and GuildFi million secured $140 million in a Sequence A funding spherical.
Funding tech, different lending, and banking Tech are the top-performing segments primarily based on funding within the the primary half of 2024 SEA FinTech sector.
A funding decline was noticed throughout a number of segments.
Nonetheless, the funding tech section secured complete funding of $216 million within the first half of 2024, a surge of 666 p.c as in contrast with the $28.2 million within the first six months of 2023.
The choice lending section raised $206 million within the first half of 2024, a drop of 59 p.c in contrast with $502 million raised within the first half of 2023.
Banking Tech firms raised $186 million within the first half of 2024, a development of 59 p.c from the $117 million raised within the first half of 2023.
Not one of the firms from this house went public within the first six months of 2024.
Nonetheless, there was an upward transfer within the variety of acquisitions, to 16 within the first half of 2024 from 11 within the first half of 2023 and 13 within the second half of 2023.
Singapore took the lead when it comes to funding within the sector, accounting for greater than half of the overall investments.
FinTech firms primarily based in Singapore raised $518 million within the first half of 2024, whereas these primarily based in Bangkok and Jakarta raised $140 million and $128 million, respectively.
East Ventures, Y Combinator, and 500 International are the all-time prime buyers on this house.
Antler, Hashed, and AppWorks had been the highest buyers in seed-stage rounds within the first half of 2024, whereas MassMutual Ventures, Illuminate Monetary and Nyca Companions had been the highest early-stage buyers.
MUFG Innovation Companions and NewView Capital had been the highest buyers in late-stage rounds through the interval.
“Regardless of sure challenges, important optimism exists for this area’s long-term development,
“Components such because the younger inhabitants, massive shopper base, reliance on casual monetary and industrial programs, and authorities initiatives are anticipated to speed up development on this area,” mentioned Tracxn.
Tracxn : Total funding into SEA FinTech startups plunge 65 percent to $2B in 2023
