Fintech & Ecommerce

Fintech Funding Plummets in Canada and Vietnam

These two countries have shown enormous levels of fintech funding decline in the first half of 2023

Fintech Funding Plummets in Canada and Vietnam

The first half of 2023 has seen a remarkable drop in fintech funding in Canada and Vietnam. The decline was 42% and 67% year-on-year, respectively. Moreover, when compared to the H2 2022, Canadian fintech funding has also declined by 68% in the reported period.

The numbers were provided by two separate reports. The data on Canada was supplied by KPMG. The firm stated that the first half of 2023 was one of the weakest for valuations since early Covid-19 crisis.

In the first six months of 2023, total investment in Canadian fintech (including VC, private equity and M&A activity) reached US$353.7 million across 57 deals. The significant decline is most obvious compared to the US$1.09 billion invested across 87 deals in the second half of 2022, and US$834.1 million invested across 109 deals in the first half of 2022. The steep decline was triggered mostly by macroeconomic concerns, according to KPMG.

A large part of the closed investment deals belonged to crypto and blockchain firms which accounted for 15 investments. AI companies managed to secure 7 funding deals.

In Vietnam, total fintech funding fell 67% year on year to a mere $6.2 million from $17.9 million a year ago, as estimated by Tracxn Technologies Ltd. According to the company, the downturn of the fintech sector in Vietnam is largely attributed to the prevailing global macroeconomic uncertainty, as well as absence of late-stage funding rounds.

The quarter-on-quarter decline is even more staggering. The first quarter of 2023 recorded total funding of $5.1 million, which is a 76% decrease from the $21.2 million secured in the first quarter of 2022.

On the global scene, fintech investment dropped to US$52.4 billion across 2153 deals from US$63.2 billion across 2885 deals in the second half of 2022.

It was earlier estimated that European tech startup funding will drop 39% this year.

Nina Bobro

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https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.