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According to data from S&P Global, Fintech in Asia Pacific The company raised a total of $3.33 billion in the first quarter of this year. This figure was spread across 186 deals.
A large part of this figure went to digital lenders, perhaps the industry’s hardest-hit subsector in terms of the impact of the pandemic on lending.
In Q1 2022, APAC lenders raised a whopping $1.28 billion in funding. 52, securing almost a third of all deals in the region.
This sunny total far surpassed the amount we earned in the first quarter for the past three years in a row.
This optimism stems from the year-over-year outlook, which had always been expected to improve in the first quarter of 2022 after the turmoil of the pandemic.
However, as the data source suggests, when considered quarter by quarter, the dollar amount fell 26% in the first quarter and the number of deals fell 9.7%.
This March quarter seems to be missing the generous check sizes that the area was once known for. This time, only eight of his deals exceeded $100 million, collectively contributing to his 36% of total funding raised in the region.
By comparison, last quarter there were 11 rounds above $100 million, representing 55% of the amount raised. Essentially, there are more deals, but they are winning less money.
The data worries that fintech funding in Asia Pacific could slow down significantly in the not too distant future as interest rates rise and demand for public equity markets begins to recede.
However, it offers a glimmer of hope for some of the industry’s most ambitious players.
Maturing fintechs, which still appear to be attractive to venture capitalists, may help offset some of the decline in funding levels, the report read.
Several established fintechs continue to raise fresh capital from new investors, and the continued trend towards inorganic growth in this uncertain climate is pushing more capital to come up. It seems to imply confidence in their ability to do so.
