Fintech funding in the region reached a six-year low, as increasing uncertainty caused by the pandemic saw a decline in investment into emerging markets like Southeast Asia.
Fintech deals in Asia Pacific attracted $11.6 billion from venture capital, private equity and M&A in 2020, compared to $16.8 billion in 2019, according to KPMG.
At the same time, global fintech funding in 2020 was the third highest on record at $105 billion, though it was down from $165 billion a year before, KPMG said in its «Pulse of Fintech H2’20» report.
The largest deals in APAC in the second half of the year included the acquisition of U.S.-based WEX by Australia-based eNett for $577 million, a $209 million raise by Australia-based Judo Bank, a $177 million raise by South Korea-based Toss, and a $100 million raise by India-based Razorpay.
China Matures
Total fintech investment in China fell from $4.8 billion in 2019 to $1.6 billion in 2020, reflecting «significant maturity» of the country's fintech sector, particularly in the payments space, which is dominated by a small number of tech giants, the report said.
«One big change we have seen in 2020 has been the focus of these fintechs [in China], with many now focusing their efforts on empowering traditional financial institutions rather than providing direct to consumer products,» Andrew Huang, partner and fintech Leader, KPMG China, said.
