Global Fintech Investment Rebounds to $98 Billion in H1 2021 – KPMG

Global fintech investment rebounded in the first half (H1) of 2021 from COVID-19 battered 2020, according to the latest report from KPMG.

In the report, global fintech grew from $87 billion in H2 2020 to $98 billion in H1 2021. Also, the fintech deal volume rose to a new record of 2,456 in the first half of 2021.

The report noted that “A wealth of dry powder, COVID-related digital acceleration, an increasingly diverse range of fintech hubs and subsectors, and robust activity in almost all regions of the world contributed to the strong start to 2021.”

Ian Pollari, Global Fintech Co-Leader, Partner, National Banking Leader, KPMG Australia, who commented on the new report, said “Global investment in fintech has seen a quick V-shaped recovery from 2020 levels. Growing deal sizes, valuations and successful exits for proven players and proven thematics have driven this result. Corporates are also increasingly looking to seize new market opportunities or urgently address gaps by embracing partnering and M&A to achieve their strategic objectives.”

On global VC Investment, the report noted that it rose over $52 billion in the first half of 2021 – very close to the annual record of $54 billion in 2018. The largest VC rounds in H1 2021 included US-Based Wealthtech Robinhood’s $3.4 billion, Brazil-based digital nubank’s $1.5 billion, Sweden-based buy now, pay later firm Klarna two rounds totaling $1.9 billion and Germany-based wealthtech Trade Republic $900 million.