FinTech

September 2018 FinTech VC Funding – Payments, Lending, and InsurTech Topped the Charts

MEDICI

FinTech startups around the world raised $4.49 billion in funding in September 2018 across 146 VC funding deals — a 16% growth from the $3.89 billion raised by FinTech startups in August 2018. Meanwhile, the number of deals saw a minor decrease of 2% from 149 deals in August 2018.

Asia dominated global FinTech VC funding in September with 45.3% in contributions in funding value ($2.03 billion) and 26% in the number of deals (38). The Americas were placed second with 31.2% in contributions to the global FinTech VC funding in September by value ($1.4 billion) and 42.5% in the number of deals (62).

Country-wise, Japan led the charge in September with 31.2% in contributions in funding value ($1.4 billion) across three funding deals — courtesy the $1.3 billion funding raised by Line, in a bid to expand its payment business. The US came a close second with 29.8% in contributions to the global FinTech VC funding by value ($1.34 billion). As for the number of deals, the US contributed 38.4% in global FinTech VC funding in September. UK, India, and China contributed 16.5% ($742.2 million), 7.2% ($324.4 million), and 3% ($134.1 million) respectively in terms of funding value.

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Among the segments, Payments led the VC funding race in September 2018 with $1.7 billion in funding across only nine deals — a staggering 185% MoM growth from $597.4 million raised in August 2018. The segment saw some of the high-value deals with Line’s $1.3 billion funding being the highest in this segment. Some of the other high fundraises in this segment in September were Stripe’s Series D funding of $245 million and Japan-based Origami’s Series C funding of $66 million.

The segment that held the second place in the funding race was Lending, which saw $1.09 billion raised across 36 funding deals. A couple of significant funding deals in this segment were $394 million raised by UK-based ThinCats and $200 million raised by US-based Portal Finance.

InsurTech was third in the list of segments with the highest VC funding in September 2018, as the startups in this space raised $458.5 million across 26 deals. US-based company Ro raised $88 million in a Series A funding round.

A couple of other noteworthy funding rounds raised by startups in this segment were $70 million raised by Israel-based MeMed and $57 million raised by the US-based Clarify Health Solutions.

B2B FinTech and WealthTech (Retail) were the other two among the top five FinTech segments in terms of funding value in September. B2B FinTech startups raised $370.6 million across nine deals. India led the B2B FinTech Funding charts with Udaan raising $225 million in a series C funding round. Another major funding deal in this segment was $102 million raised by China-based PingPong.

WealthTech (Retail) startups raised $159.7 million across 19 deals. The key contributor to the global funding in this segment was US-based Trumid, which raised $53 million in a series C funding round.

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.