Retail fintech venture capital (VC) deal value dropped significantly in Q1 2024, experiencing a 15.3 percent year-over-year (YoY) decline and a 30.8 percent quarter-over-quarter (QoQ) fall to $1.9 billion.
This sharp decrease places the quarter’s deal value at its lowest in over five years, with the exception of Q2 2023, which recorded $1.6 billion. These findings are highlighted in PitchBook’s Q1 2024 Retail Fintech Report, emphasizing the challenges retail fintech companies face amidst a crowded market, macroeconomic pressures, and tighter capital availability.
In contrast, enterprise fintech companies secured $3.5 billion in VC funding, making up 64.6 percent of the total fintech VC deal value, while retail fintech captured just 35.4 percent. The quarter saw 144 deals, reflecting an 11.7 percent QoQ decline and a 31.4 percent YoY drop, marking the lowest deal count for consumer fintech companies in over five years.
Key Deals in Q1 2024
The top deals of the quarter were predominantly in the wealthtech sector, followed by credit and banking, and alternative lending. Notable deals include:
Monzo: $621.0 million Series I led by CapitalG and GV
KreditBee: $209.4 million Series D, including a $9.4 million extension from early Q2, led by Premji Invest
Bilt Rewards: $200.0 million Series C led by General Catalyst
ADDI: $86.0 million late-stage raise, comprising $36.0 million equity and $50.0 million debt
Smaller deals at the pre-seed/seed stage also concentrated in wealthtech included:
dub: $17.0 million seed round ($15.0 million equity, $2.0 million debt) led by Tusk Venture Partners
LODA Markets: $7.5 million seed round of debt and equity led by Firebrand Ventures
Hedge: $4.7 million seed round
Tandem: $3.7 million seed round led by Corazon Capital
Deal Sizes in Q1 2024
The median deal size for retail fintech companies was $3.2 million, a 5.9 percent decrease from 2023’s median of $3.4 million. Despite this decline, the median deal size remains above levels seen prior to 2021.
Specific declines in median deal sizes included:
Pre-seed/seed median deal: Down 16.9 percent to $1.4 million
Early-stage median deal: Down 47.9 percent to $1.8 million
Late-stage median deal: Down 33.3 percent to $4.5 million
Venture-growth median deal: Down 25.2 percent to $14.0 million
Additionally, the average deal size for early-stage companies was $8.8 million, marking a 16.5 percent decline from 2023’s average of $10.5 million.
