“We count on Southeast Asia-based fintechs to draw extra capital as enterprise capitalists elevate new cash to double down on know-how investments within the area,” mentioned Celeste Goh, fintech analyst at S&P World Market Intelligence. Newly-listed APAC-based fintechs have up to now seen optimistic reactions from public markets, which can encourage extra fintech investments within the area.
Southeast Asia is shortly catching up. Fintech investments in Southeast Asia greater than doubled on a quarter-over-quarter foundation to $1.90 billion with deal quantity rising by 32% to 62 offers.
Cost fintechs are on the forefront of fintech funding in Asia-Pacific, contributing seven out of the ten largest transactions within the third quarter.
Whereas consumer-facing cost apps have dominated funding into the cost sector up to now, business-to-business cost fintechs have been attracting extra buyers’ consideration of late.
The excess of capital flowing into fintechs has pushed up valuations, however public market buyers have largely appeared unfazed by the lofty price ticket. Maybe seeing the potential of a profitable exit, some enterprise capitalists have just lately raised contemporary funding focused at tech startups within the area. This leads us to consider that fintech funding in Asia-Pacific nonetheless has legs regardless of a file quarter.
“Investments in fintech corporations based mostly in Asia Pacific reached a brand new quarterly excessive resulting from continued development in mega transactions with at the very least $100 million in dimension,” mentioned Goh.
The expansion in huge financing rounds has been accompanied by elevated valuations, which can partly be pushed by improved fundamentals as we see an accelerated shift towards digital channels.
Nevertheless, it could additionally replicate personal buyers’ willingness to pay larger multiples resulting from their bullishness within the fintech sector.