The latest report from S&P Global Market Intelligence has revealed the size of the venture capital funding in fintech startups in 2024.
Fintech startups secured $28 billion across 1,671 funding rounds in 2024, a 20 percent decline in both value and round count.
However, Q4 funding rose 17 percent to $6.86 billion, despite a 28 percent drop in transactions. Mega rounds worth $100 million or more increased to 31 deals in the latter half of the year, mainly in capital-intensive sectors like digital lending.
US fintech funding dropped 40 percent to $10 billion, while UK funding surged 46 percent to $4 billion. India saw funding halved to $1 billion, and Singapore remained steady at $1 billion. Brazil stood out as the only market outside these hubs to exceed $1 billion.
Fintech deal counts declined 17 percent to 615 in the US. In the UK, there was a 19 percent drop in deal volume to 160. India’s funding numbers dropped 8 percent in transactions to 134. Singapore’s funding deals decreased by 16 percent to 72.
Payments funding fell 50 percent to $7 billion, while banking technology funding doubled to $6 billion.
Insurance technology faced a 40 percent drop to $3 billion.
Digital lending maintained $6 billion in funding with fewer transactions.
Seed-stage funding experienced the sharpest decline, with deal counts down 46 percent, while early, growth, and mature stages also saw notable reductions.
Venture capital is expected to focus on underserved segments and regions, with North America, particularly the US, likely leading the resurgence. Payments innovation and infrastructure enhancement are anticipated as dominant growth drivers, Sampath Sharma Nariyanuri, Senior Fintech Research Analyst at S&P Global Market Intelligence, said.
