This quarter saw 146 transactions in the FinTech sector, 96 of which we are highlighting in this report. The overall number of deals has incrementally increased compared with the previous quarter. This represents an ~8% decrease on a one-year spot basis – more than the global ~7% decrease in M&A activity which is reflective of the wider economic picture.
Despite the growing concerns with the macroenvironment and the suppressed public valuations in FinTech, M&A activity has marginally increased as corporates and PE firms look for deals, given the declining valuations. Many start ups are choosing to sell as an alternative to holding a down round.
This quarter has shown there is a growing use of blockchain technology for financial applications and a focus on data-driven solutions. Businesses are focusing on finding ways to collect, assess and utiltise data in order to differentiate their offerings.