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Asia Sees Significant Drop in Fintech Investment as China Loses Momentum

Total fintech funding in Asia was US$3.85 billion in 2017—a drop-off from the more than US$10 billion invested in 2016 while the amount in Q4 2017 declined to US$748 million across 38 deals after a solid US$1 billion+ in Q3, said KPMG.

Decreased fintech investment in China accounted for much of the decrease in investment in Asia, KPMG explained. According to the firm, China saw just US$45.8 million in investment in Q4’17, while total investment in 2017 was US$1.33 billion.

“Increasing government controls and regulations over fintech in China have kept many investors on the bench during 2017. Only one US$100 million+ deal occurred in Q3 in China, which is the acquisition of BiWang Group by CollinStar Holdings,” KPMG pointed out in its recently released KPMG Pulse of Fintech Report.

According to the report, VC funding in fintech faltered considerably in Asia as well, dropping almost 50% quarter over quarter to US$550 million.  On the positive side, corporate participation in fintech deals skyrocketed in Asia during Q4, rising from a twelve-quarter low of 11% in Q3’17 to reach a new high of over 31 percent, the firm added.

Source: CFO Innovation

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