ASEAN fintech startups attract record funding

Thursday, 2021-11-11 21:19:12
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ASEAN fintech startups attract record funding (Source: VNA)
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NDO/VNA - Funding for financial technology (fintech) startups in ASEAN more than tripled to hit a record of US$3.5 billion in the first nine months of 2021, according to a report.

The report, titled FinTech in ASEAN 2021, was released on November 10 by the Singapore-based United Overseas Bank (UOB), PwC Singapore, and the Singapore Fintech Association (SFA).

It showed that 167 deals, including 13 mega-rounds or funding rounds of over US$100 million, accounted for US$2 billion or 57.1% of total funding.

The payment sector saw the highest amount of funding as digital payment adoption spiked in the region, with investors placing more confidence in the segment. The sector saw a 244% compound annual growth rate (CAGR) to US$1.9 billion in 2021, from US$562 million in 2020.

In terms of spikes in 2021 CAGR, investment tech led the way, recording a 493% surge to US$457 million, from US$77 million in 2020. Cryptocurrencies come second at 424% to US$356 million, from US$68 million last year.

Singapore continues to take the lead in ASEAN in this regard, securing US$1.6 billion, or 49% of the 167 deals. It is followed by Indonesia with US$904 million funding secured, and Vietnam with US$375 million of funding secured.