DealStreetAsia estimates that fintech startups in Southeast Asia raised US$521 million in the second quarter, up 62.5% sequentially. Per DealStreetAsia’s calculations, this marks the third straight quarter of funding growth in the region, though deal count was a bit smaller in the April-June period than in the first quarter.
That paints a more optimistic picture than the data compiled by KPMG in a recent report. That report shows that fintech investment in the overall Asia-Pacific region decreased 21.7% year-on-year in the first half of the year to US$3.7 billion from US$4.6 billion during the same period in 2023. While the total number of deals in APAC rose to 438 from 406, not one of the 10 largest deals globally occurred in the region. There were no significant outliers among APAC countries in the first half of the year as fintech investment fell in the China, India, Singapore, Australia and Japan.
A new CB Insights report is equally bearish. It finds that fintech funding in Asia has fallen to its lowest half-year funding level in at least six years.
The third quarter has yet to see any large deals that would suggest a clear turnaround is at hand, though Syfe announced that it had raised US$27 million in mid-August. The Singapore-based robo advisory firm raised the funds from two undisclosed UK-based family offices. Other participants in the funding round included earlier-round investors such as London-based Unbound and U.S.-based Valar Ventures. Since its establishment in 2019, Syfe has raised HK$615 million.
Of the investment, Syfe CEO Dhruv Arora said, “Securing quality investment in the current fundraising environment is not only a significant milestone for Syfe, but for consumer-facing digital wealth businesses across the region. The amount raised and the addition of new investors underscores the confidence in our vision and our ability to deliver remarkable and efficient growth, leading to profitability in Singapore.”
He added, We will also be assessing strategic investment opportunities or acquisition targets aligned with our mission and growth objectives.”