It added that the deals, however, dipped to $647.5 million involving 32 deals in the second quarter when the whole world was under severe lockdowns to contain the coronavirus pandemic, the report said.
As against this, the first quarter of 2019 saw just $272.6 million coming in through the venture capital, private equity and merger and acquisition (M&A) routes, while the same in the second quarter was only $454 million, according the report.Thus, the first quarter of 2020 saw fund inflows jumping fivefold and the same in the second quarter added 50 per cent more.
The whole of 2019 saw fund inflows through these routes scaling to $2.75 billion, up from $1.92 billion in 2018 and $2.55 billion in 2017.
Though the agency warns of more stress on the deal street during the second half, it is optimistic about India remaining a major opportunity for investors over the medium and long term.
Global financial technology (fintech) investments declined to $25.6 billion in the first half across 1,221 deals driven down by a sharp drop in M&As which plunged to just $4 billion.
In the whole of 2019, the sector attracted investments worth $150.4 billion globally.
Sanjay Doshi, partner and head of financial services at KPMG in India, said, “Pre-COVID-19, financial technology-driven financial services, especially in lending, insurance and distribution, have been attracting significant investments.”
He added that the pandemic has fast-tracked the digital economy, and significant investments are being made by established banks and insurers which can also lead to acquisitions and more investments from investors.
Doshi also expects the pandemic to spawn more innovations in the space and thus remain the key driver of change for fintech investments in the rest of the year, given the strong acceleration of digital trends like using contactless payments and demand for and use of digital services.The ongoing acceleration of digital trends will drive fintech investments not only in direct fintech solutions but also in related enabling technologies like cybersecurity, fraud prevention and digital identity management, according to the report.
- FBI and Detroit police taught 'White Boy Rick' the drug game then double-crossed him, he says. Now, he wants $100 million
- Fintechs attract record USD 2 billion in H1: Report
- At $2 bn, Indian FinTechs raise more funds since January than entire 2020
- Indian startups raised $6.5 bn in April-June 2021, 11 unicorns created
- Brexit LIVE: EU 'crushed' as City bankers win 'eye-watering' £14bn coup – new report
- Brexit Live: Boris Johnson could suspend Parliament to FORCE through no deal Brexit
- Frightening new climate report also holds the seeds of hope
- We warned you! Irish firms suffer 'double whammy' of EU red tape
- The Forbes Fintech 50 For 2016
- Singapore's fintech industry sees 3-year record of 72 deals worth US$614.2m in H1
- Indian startups raised USD 6.5 bn funding in Q2 2021, 11 new unicorns created: Report
- Fintech Grows Greener: ESG-Focused Aspiration Lands $2.3 Billion Deal To Go Public Via SPAC
- The Future Of Personal Finance: Fintech 50 2021
- Online trading firm eToro going public in more than $10 billion SPAC deal
- US ‘must double’ its cash pledge to help fight climate emergency
- Give in, Boris! EU urges UK to accept massive trade U-turn with NEW deal
- FinTech: What makes Buy Now Pay Later a hit with Amazon, Flipkart and other internet companies
- Square to buy Afterpay for $29 billion as 'buy now, pay later' booms
- India's exposure to US securities jumps over $20 bn in 3 months; touches $220.2 bn in June
- Thailand’s investment pledges more than double in H1
Domestic fintech deals have doubled to $1.7 billion during January-June, says report have 625 words, post on bfsi.economictimes.indiatimes.com at September 3, 2020. This is cached page on Talk Vietnam. If you want remove this page, please contact us.