The region's fintech firms brought in $3.5 billion in funding in the first nine months of 2021 – up more than three times compared to the whole of 2020.
The rebound in fintech funding was driven by 167 deals including 13 mega-rounds, which accounted for $2 billion of the total funding, said in the «FinTech in ASEAN 2021» report, published by UOB, PwC Singapore and the Singapore FinTech Association (SFA) this week.
The largest share of funds was channelled into late-stage fintech firms from the payments sector. Predictably, the pandemic was the main catalyst for the resurgence in fintech funding, as accelerating digital adoption across the region prompted a rise in digital payments and a shift towards digital channels within the financial services sector.
According to the report, the strong interest in late-stage fintech firms signals a «shift in the strategy of investors… as they take a more cautious and risk-averse approach of backing mature firms that are seen as standing a higher chance of emerging stronger from the pandemic.»
Singapore Leads
Singapore-based fintech firms continued to attract the strongest funding in Asean, securing 49 percent of the total 167 deals, amounting to $1.6 billion in funding. This includes six mega-rounds worth $972 million in total. Indonesia retained its second position, with $904 million in funding (26 percent), followed by Vietnam at $375 million (11 percent) as a result of two mega-rounds.
«Singapore, in particular, has seen the most robust funding, supported by a growing number of fintech looking to set up their headquarters here due to the strong regulatory support, opportunities for regional collaboration and a flourishing startup-focused investor ecosystem,» Shadab Taiyabi, president at SFA, said in a statement.
