Lending

June 2018 FinTech Funding – Lending, AI/ML/NLP & InsurTech Startups Topped the Charts

MEDICI

In June 2018, FinTech startups around the world raised $3.764 billion worth of VC investments across 147 deals. This was a whopping 116% growth (MoM) from the $1.746 billion raised in May 2018. In terms of the number of deals, there was a 30% MoM growth in June as compared to the number of deals in May.

The US continued to dominate the funding charts with $1.16 billion raised across 56 deals, contributing to 31% of the global FinTech funding (by value) in June. China was a close second with a 25% ($938.5 million raised across nine deals) contribution, with Hong Kong, India & Israel contributing 16.7% ($630 million), 7.5% ($281.7 million) & 3.4% ($129.4 million) respectively.

Among the segments, Lending led the funding race in June 2018 with $789.8 million in funding across 31 deals. This was a staggering 230% MoM growth in the funding in this space compared May 2018. Chinese alternative lender CGTZ raised $358 million in a series D round. Another large funding deal in this space was the China-based 9fGroup’s Series D round of $65 million.

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The segment that held the second place in the funding race was AI/ML/NLP, which saw $620 million being raised in a single funding deal by the Hong Kong-based SenseTime. This was SenseTime’s second-largest funding round in 2018, and the company is now valued at more than $4.5 billion.

InsurTech was third in the list of segments with the highest amount of funding in June 2018 as the startups in this space raised $555 million across 30 deals. The India-based insurance aggregator Policybazaar raised the largest funding in this space in June, with a Series F round of $200 million. With this funding round, Policybazaar became the latest FinTech unicorn. Other InsurTech startups which raised a good amount of funding were the Sweden-based KRY ($66 million) and the France-based Dreem ($35 million).

Cryptocurrency and Payments were the other two among the top five FinTech segments in terms of funding value in June.

Cryptocurrency startups raised $415.8 million across only four deals. These funds were largely contributed by the leading China-based bitcoin miner Bitmain, which raised $400 million in its Series B funding round in June.

On the other hand, Payments startups raised $262 million across 14 deals. The US-based Marqeta raised the highest amount of funding in this space in June with $45 million, followed by the Germany-based Stocard, which raised $20 million in June.

Outside of the top five segments, RegTech ($233 million), Big Data Analytics ($221 million), WealthTech-Retail ($191 million) & Cybersecurity ($149 million) were some of the well-funded FinTech segments in June.

Diwakar Mandal

MEDICI

Diwakar is a FinTech enthusiast and an avid researcher who spends his time learning and writing about market trends, traction and disruptions in the industry. He has been active in the financial services consulting space for over four years.