This past month of October witnessed a frenzy of investments in fintech companies. As per a study by Finovate, 76 fintech companies attracted $1 Bn in equity investments. The ten ten deals that were more than $30 Mn each, are:
- $185Mn Mozida
- $150Mn Square
- $75Mn Yodlee (raised via IPO)
- $70Mn Cardlytics
- $64Mn Wealthfront
- $57Mn Financial Software Systems
- $50Mn Personal Capital
- $42Mn VivaReal
- $40Mn Credorax
- $31Mn Blockchain
These 10 deals themselves attracted $764 Mn in funding. The remaining 66 deals brought in $276 Mn in funds bringing the total to $1.04 bn.
The payments sector has been in the news all around the year. There have been new product launches, acquisitions and many companies received funding. Investors have played a major role in funding the ambitions of payment startups. A new report from Knowledgefaber looks at the investments (past 5 years) and recent Acquisitions (in 2013 & 2014) which took place in the sector. The report analyses investments across years, countries and respective categories (Mobile wallet, POS, Payment Gateways, etc.) of payment companies. The report also mentions the investors involved and the funding rounds which the companies went through.
The fact that 76 companies raised a billion dollars in a single month is totally amazing because as per the report, $2.3 Bn was invested in the payments sector in 2013 & 2014. Out of this, $492 Mn was raised by 59 startups in the first quarter of 2014.
Global investment in fintech ventures has risen over 3 times during the last five years, from less than $930 Mn in 2008 to over $2.97 Bn in 2013. But this recent news reveals that the pace of investments in fintech companies is increasing at a staggering rate.
From online personal lenders, payment processors, credit monitoring and personal finance management tools, every fintech company is looking forward to taking a piece of the trillion dollar industry. Factors like open source software and cloud technology have lowered the barriers of entry for emerging startups in the past five years. With more startups attracting investors, the entire fintech sector can look forward to benefit from the splurge in investments.
You can get more details on the report titled Investments, Funding & Acquisitions in Payments and access the content of the study by following this link.