The first half of 2024 was challenging for the global fintech market due to high interest rates and significant geopolitical uncertainties. Total global fintech investment—including venture capital (VC), private equity (PE), and mergers and acquisitions (M&A) deal values—dropped from $62.3 billion across 2,287 deals in the second half of 2023 to $51.9 billion across 2,255 deals in the first half of 2024, according to KPMG.
The decline in VC investment was observed across all key regions. In the Americas, it fell modestly from $38.5 billion to $36.7 billion, and in the Asia-Pacific (ASPAC) region, it dropped from $4.6 billion to $3.8 billion. However, the Europe, Middle East, and Africa (EMEA) region experienced a more significant decline from $19.1 billion to $11.4 billion.
This reduction in deal value was partly due to a decline in large deals as fintech investors exercised caution. According to KPMG’s H1’24 Pulse of Fintech report, only five fintech deals worth over $1 billion occurred globally during this period. These included the buyouts of US-based Worldpay for $12.5 billion, Canada-based Nuvei for $6.3 billion, US-based EngageSmart for $4 billion, UK-based IRIS Software Group for $4 billion, and Canada-based Plusgrade for $1 billion. The largest VC deal was a $999 million raise by UK-based Abound.
Despite the overall decline in investment, regional deal volume showed some optimism. While the global deal volume dipped slightly, the decline was driven by a reduction in EMEA deals, from 804 in H2’23 to 689 in H1’24. In contrast, the Americas saw an increase in deal volume from 1,066 to 1,123, and ASPAC saw a rise from 406 to 438.
“The high cost of capital and geopolitical uncertainty linked to conflicts and elections have dampened global investments this year, and the fintech market is no exception,” said Karim Haji, Global Head of Financial Services at KPMG International. He added that investors are cautious, focusing on improving existing companies rather than pursuing new acquisitions due to concerns about valuations and profitability.
