There's no denying that 2022 has been a rough year for Fintech.
Fintech startups raised $79B globally in 2022, down 38% from last year, but still, almost double the pre-pandemic level. This pullback has been slightly worse than the overall market, which is down 36%. Also taking a closer look, funding slowed down significantly in the second half of 2022 painting an even less rosy picture. Megarounds have been the most hit, Q4 has seen just 21 of them, down from a peak of 102 in Q3 2021.
The public and private markets still have to converge. While the combined value of public fintech startups is down a massive 50% from last year, private ones are still up 24%.
In fact, most of the repricing in private markets still has to come. Just 22% of VC-backed fintech startups raised a round in 2022 and we started to see notable down rounds such as Klarna (-85%), SumUp (-60%) and Checkout (-73%).
😲 4 million fake bank accounts in JP Morgan acquired fintech Frank - JP Morgan acquired education financing fintech Frank for $175M in Sept 2021. It is now suing the startup's young founder for having forged fake accounts to entice the acquisition. Ah, of course, Frank's founder was in Forbes 30 under 30. - CNBC
🇮🇳 Indian super app PhonePe has raised $350M in a new funding round led by General Atlantic at a valuation of over $12B. This makes the Walmart-backed startup, the most-valued fintech in India. PhonePe spun-out from e-commerce startup Flipkart in December.
🇨🇦 Crypto Infrastructure startup Blockstream raised $125M in convertible note and debt for bitcoin mining.
🇮🇳 Avanse Financial Services,an education loan company, raised 98M in Growth Equity from PE firm Keedara Capital.
Other notable fintech deals from around the globe:
🇺🇸 Digital-first health insurance startup Angle Health raised a $58M Series A to build a cohesive ecosystem that promotes better health for American consumers.
🇺🇸 Deel enters the equity management space with the acquisition of Capchase. Capbase helps startups update their cap table in real-time as it issues shares, sign contracts and raise money from investors. Remote payroll unicorn Deel has expanded to other services for startups, including equity management which will be boosted by this acquisition.
🇺🇸 Still in the equity management space, asset manager giant Fidelity has acquired Shoobx, a leading provider of automated equity management operations and financing software for private companies at all growth stages, up to and including an initial public offering (IPO). The acquisition sits in Fidelity's strategy to increase its activity in the private market.
Tip of the week
🔎 What we have been up to in 2022
From embedded finance and climate fintech, to crypto regulatory challenges and fintech emerging hubs globally.
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