Technology

Fintech Startups Hit $121.7B in Total Funding, a $20B Increase in a Year

Published

3 years ago

March 2, 2021

Recent years have witnessed a surge in the number of fintech investments, with record funding levels and rising valuations. The strong investment activity in the fintech sector continued in 2020, despite the global slowdown in venture capital deals caused by the COVID-19.

According to available data, the cumulative value of funds fintech startups raised over time hit $121.7bn in February, a $20bn increase in a year.

Asian Fintechs Raised $50.3B, 40% of Total Funding

The financial services industry continues attracting tech companies that transform how people and businesses spend, invest, save, and borrow money. The rapid growth of the entire sector has been followed by the increasing number of venture capitalists willing to invest in fintech companies and support their business.

In 2018, fintech startups raised $31.3bn with the cumulative funding value reaching $71.3bn that year, revealed the Crunchbase data. By the end of 2019, this figure jumped to $95.8bn, a $24.5bn increase in a year.

Statistics show that 2020 witnessed $20.3bn of investments into the fintech sector, despite a significant drop in global venture capital funding caused by the pandemic. The cumulative value of investments hit $116.1bn last year, and this figure rose by another $5.6bn in the last two months.

Statistics show that Asian fintechs lead in the total value of investments, with $50.3bn in funding rounds so far. The North American companies raised $47.8bn in funding, ranking as the second-leading region globally. European fintech startups follow with $18.2bn worth of investments.

The Number of Fintech Startups Tripled in Two Years

Although the COVID-19 may have influenced the investment activity in the fintech sector, the pandemic also triggered a surge in the use of fintech solutions, creating a huge space for new companies.

The BCG data revealed the number of fintech startups worldwide tripled in the last two years, rising from over 12,200 in 2019 to 26,000 in 2021.

As of February 2021, there were 10,605 financial technology startups in North America as the leading region, up from 5,800 in 2019.

However, statistics show Europe, the Middle East, and Africa have witnessed the most significant increase in the number of fintech startups. In 2019, almost 3,600 companies were operating in this sector. Since then, the number of fintech startups in the EMEA region surged by 160% to more than 9,300.

Asia and the Pacific ranked third with more than 6,100 fintech startups as of February, up from 2,800 in 2019.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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E-commerce

Jumia Nigeria Appoints Sunil Natraj as CEO, Outlines Ambitious Expansion Plans

Former Jumia Ghana CEO to Lead E-Commerce Giant as Massimiliano Spalazzi Steps Down

Published

2 days ago

December 8, 2023

Investors King

Jumia Nigeria, a prominent player in the e-commerce sector, has announced the appointment of Sunil Natraj as its new CEO.

Natraj, the former CEO of Jumia Ghana, will take the helm of the e-commerce business in January 2024, succeeding Massimiliano Spalazzi, who has been with Jumia Group for 11 years and will be stepping down in December 2023.

The announcement came during a media parley held in Yaba, Lagos, Nigeria, with Francis Dufay, the CEO of Jumia Group, unveiling Natraj as the new leader.

Natraj expressed Jumia’s commitment to becoming a truly Nigerian company and continuing the initiatives started by Spalazzi.

“We want to continue what Spalazzi started,” Natraj stated, emphasizing Jumia’s vision to expand its presence beyond Lagos.

He disclosed plans to extend operations to additional Nigerian cities, with Akure and Ilorin on the radar and a focus on cities en route to Ibadan, Warri, and Benin in the first quarter of 2024.

The overarching strategy is to create a comprehensive network covering the entire country.

Dufay outlined the ambitious goal of targeting cities with populations exceeding 20,000 people, citing successful precedents in Ghana, Cote d’Ivoire, and Senegal.

He acknowledged the challenges faced by Jumia, including a workforce reduction in Q4 2022 and a 73% cut in advertising budgets in Q3 2023.

Despite the hurdles, Dufay highlighted Nigeria as Jumia’s largest market and affirmed the company’s determination to navigate and thrive in the ever-evolving e-commerce landscape.

Technology

Google DeepMind Unveils Gemini AI Chatbots to Rival OpenAI’s GPT Series

Gemini Ultra Outperforms GPT-4 in Text, Image, Coding, and Reasoning Tasks

Published

2 days ago

December 8, 2023

Investors King

Google DeepMind has officially introduced its highly anticipated family of AI chatbots named Gemini, poised to compete with OpenAI’s renowned GPT series.

Among the key highlights is Gemini Ultra, the largest and most advanced model, which Google claims surpasses OpenAI’s GPT-4 in various domains, including text-based, image-based, coding, and reasoning tasks.

The announcement also shed light on the meticulous development process, emphasizing that Gemini Ultra is undergoing rigorous “trust and safety checks, including red-teaming by trusted external parties.”

This stringent evaluation process aligns with Google’s commitment to ensuring the reliability and security of its AI technologies.

Accompanying Gemini Ultra are two additional models, Gemini Pro and Gemini Nano. Gemini Pro is now accessible to the public through Google’s Bard chat interface, while the smaller Gemini Nano is designed to run on Google’s Pixel 8 Pro smartphone.

All three models exhibit the capability to process text, images, audio, and video, providing comprehensive outputs in both text and image formats.

Google envisions the integration of Gemini models into various products and services, including internet search and advertisements.

Developers will gain access to Gemini Pro through an API starting December 13, with Android developers empowered to build with Gemini Nano.

The Gemini suite is set to face competition from industry rivals, including OpenAI, Anthropic, Inflection, Meta, and Elon Musk’s xAI.

Google DeepMind’s ambitious move reflects its dedication to advancing AI capabilities and establishing a strong presence in the burgeoning field of AI chatbots.

This unveiling marks a significant milestone for Google DeepMind, a company born out of the fusion of DeepMind and Google Brain in April 2023.

The incorporation of Gemini into Google’s AI portfolio signifies the tech giant’s determination to close the gap with competitors and assert itself as a leader in AI innovation.

Fintech

Flutterwave Expands Financial Frontier: Acquires Money Transfer Licenses for 13 U.S. States

Africa’s Leading Payments Tech Firm Facilitates Faster, Affordable, and Secure Transfers between the U.S. and Africa

Published

2 days ago

December 8, 2023

Investors King

In a significant move towards advancing financial connectivity between Africa and the United States, Flutterwave, Africa’s premier payments technology company, has proudly announced its acquisition of money transfer licenses for 13 key U.S. states.

This strategic expansion aims to expedite, streamline, and secure the transfer of money from the U.S. to Africa and back.

The states covered by the newly acquired licenses include Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota.

These additions, combined with Flutterwave’s existing partnerships and licenses, now empower the company to serve customers seamlessly across 29 states in the U.S.

Money transfer licenses, issued by state regulators, play a pivotal role in enabling financial technology companies like Flutterwave to engage in the transmission of money.

The acquisition of these licenses fortifies Flutterwave’s commitment to regulatory compliance, safety, and the soundness of its services.

Stephen Cheng, Executive Vice President, Global Expansion and Partnerships at Flutterwave, emphasized the significance of this milestone.

“Getting these licenses expands our regulatory footprint, demonstrates our ability to deliver services with safety and soundness, and fosters trust among regulators, partners, and customers,” stated Cheng.

“We’re growing and are committed to servicing customer needs in as many geographies as possible, particularly with a significant African diaspora.”

Flutterwave’s popular solutions, such as the Send App, are set to benefit greatly from this expansion.

The Send App facilitates easy and secure money transfers between the U.S. and Africa, catering to both individual users and enterprises that rely on Flutterwave for global last-mile payouts.

“Sending money between the U.S. and Africa has been challenging for the African diaspora. These licenses pave the way for Flutterwave to make the Send App available to the African diaspora in the U.S., offering a super user-friendly money remittance experience,” explained Olugbenga Agboola, Founder and CEO at Flutterwave.

“Our mission is to connect Africa to the world and the world to Africa by simplifying payments for endless possibilities. These licenses move us one step closer to our vision, and we will continue to expand this feat to ensure coverage for all states in the U.S. and beyond.”

Flutterwave remains steadfast in its commitment to providing accessible remittance services across the U.S. and has outlined plans for further expansion of licensing coverage in the near future.

This ambitious endeavor reflects the company’s dedication to fostering financial inclusion and creating a seamless financial bridge between continents.