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India 2nd popular destination for fintech investors after China

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Despite some cooling down at the end of last year in some of the more mature fintech hotspots, such as Silicon Valley, New York and London, hubs in other parts of the world, such as Austin, Stockholm and Mumbai gathered pace.

China has the lion’s share of investment, accounting for 45% in 2015, but India makes up 38% and is growing fast, according to Accenture analysis of CB Insights data. Mumbai, Bangalore, Tokyo and Beijing are the major fintech hubs in the region by the number of deals.

Investments in Asia-Pacific have eclipsed North America. Investments in Asia-Pacific financial technology (fintech) ventures, primarily in China, reached $9.62 billion as of July 31, more than twice the $4.26 billion invested in the region in all of 2015.

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North America, as of July 31 garnered $4.58 billion in fintech investments; Europe attracted $1.85 billion in the same period.

However, deal volume remains higher in North America and Europe, as the Asia-Pacific increase is due to big investments in a few select fintech companies in China. There have been 192 deals in Asia-Pacific so far this year, as compared with 509 in North America and 230 in Europe.

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The top 10 investments in Asia-Pacific fintech ventures occurred in China and Hong Kong, accounting for 90 percent of overall Asia-Pacific investments and valued at $8.75 billion. In total, China and Hong Kong fintech ventures have attracted $9 billion in investments so far in 2016.

78% deal volumes went to fintech companies targeting the banking industry, 9% to wealth management and asset management companies and 1% to the insurance sector. Payments is the most popular segment for fintech deals in Asia-Pacific, accounting for 38% of the total.

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