Global financial technology (fintech) startups raised $6.4 billion across 370 funding rounds in the third quarter of 2024, according to S&P Global Market Intelligence.
This marks a 22 percent year-over-year (y/y) drop in the number of rounds but an 8 percent increase in total dollar value. However, compared to the previous quarter, funding was down 27 percent, with a 20 percent decline in deal count.
The largest VC funding round of the quarter came from the Philippines-based Mynt, which secured $786 million from domestic conglomerate Ayala Corp. and Mitsubishi UFJ Financial Group, Japan’s largest bank.
Among key fintech hubs, the US continued to lead in venture capital activity, with $2.3 billion in funding, though the deal count fell by 22 percent y/y. The UK saw a substantial 69 percent rise in funding to $600 million, despite a slight decline in deal numbers. India’s fintech sector also grew, with funding rising 37 percent y/y to $420 million and deal count up 10 percent.
In terms of segments, payments led the charge, with funding jumping 91 percent to $2.35 billion despite a drop in deal count. Digital lending also saw growth, with value rising 44 percent y/y to $1.12 billion. Meanwhile, banking technology and insurance technology faced sharp declines in both value and deal count.
Seed and early-stage funding continued to decline, while growth-stage funding surged 81 percent to $2.65 billion, indicating a shift in investor focus toward established fintech firms with scalable potential.
Sampath Sharma Nariyanuri, Senior Fintech Research Analyst at S&P Global Market Intelligence, noted that the decline in VC investment reflects a cautious funding environment.
However, interest in larger deals signals a strategic focus on firms with proven growth potential. He added that factors like the Federal Reserve’s rate cuts and the performance of fintech stocks offer a more optimistic outlook for the industry.
Additionally, fintech companies are increasingly capitalizing on the demand for modern payment infrastructure, particularly in instant payment systems and blockchain-based cross-border transactions.
